Hidden Costs of Buying a Home in Mexico Nobody Mentions

You saved for the down payment, your mortgage was approved and you found the perfect home. But the sale price is only part of what you will actually pay. The hidden costs — closing and deed costs (escrituración), appraisal, moving, maintenance and others — can add up to a percentage that catches more than one buyer off guard. In this guide we walk you through all of them so you arrive prepared.

1. Closing costs (escrituración) and taxes

This is the big expense many people forget. It includes the ISAI (property transfer tax), notary fees (notario público), registration fees, the appraisal and certificates. Altogether it usually amounts to between 4% and 8% of the home's value, and it varies by state. Estimate it with our closing cost calculator and see the details in how much it costs to execute the deed by state.

2. Mortgage costs

• Loan origination fee (when applicable).
• Appraisal ordered by the bank.
• Insurance (life and property damage), which is added to your monthly payment.
• Investigation and administrative fees for processing your file.

3. Moving and getting set up

• Moving and transporting furniture.
• Utility setup: electricity, water, gas and internet.
• Basic improvements: locks, curtains, minor repairs.
• Furniture and appliances you still need.

4. Recurring costs you hadn't counted on

• Annual predial (property tax) and water.
• Maintenance fee (cuota de mantenimiento) if it's a condominium or gated community (fraccionamiento).
• Home maintenance: painting, waterproofing, repairs.
• Homeowner's insurance, highly recommended even if it isn't mandatory.

How much it adds up to

Frequently asked questions

How much extra money do I need beyond the down payment?

Mostly for closing costs (escrituración), which run around 4%–8% of the value, plus mortgage costs, moving and getting set up. It's wise to keep an additional cushion and not put every peso into the down payment.

Does the bank finance closing costs?

Generally not; they are paid separately, although some loans allow you to include a portion. Keep in mind that financing them increases the loan amount and the interest.

What costs are recurring after buying?

Predial (property tax), water, maintenance fee (if applicable), home maintenance and, highly recommended, homeowner's insurance.

Can I negotiate who pays what?

Some items are negotiable between buyer and seller, but as a general rule the buyer covers the closing costs (escrituración) and the seller pays the ISR (income tax) on the gain. Agree on it in writing.