Mortgages: the most expensive decision of your life
Cheapest credit on the market (typical CAT 11–13%) and also the longest (15–20 years is common, up to 30 on some products). Half a point of CAT over 20 years on a 2-million peso loan is easily 250,000 pesos.
Fixed or variable: fixed lets you sleep — you know what you pay every month all the way through. Variable, tied to TIIE, looks attractive today but recalculates whenever Banxico moves rates. If you're holding the loan to maturity, look at fixed even at half a point premium.
Cofinavit and Apoyo Infonavit: if you're contributing, put your sub-account into the mix. Doesn't always beat a pure bank mortgage, but it reduces the down payment you have to put in cash and frees up flow. Worth running both numbers.
- ✓Common term: 60 to 240 months
- ✓Minimum down payment: 10% (sweet spot 20%)
- ✓Bank CAT: 11.4–12.4% on average offers
- ✓Fixed vs variable: think about your time horizon