One of the triggers that has favored the acquisition of homes in Mexico, throughout 2020 and so far in 2021, was the downward adjustment that has maintained the mortgage loan rate.

There are still various factors that will promote the purchase of a home in the remainder of 2021 and one of the most determining factors becomes the interest rate. 

Banco de México has progressively lowered its target rate since last year. At the end of August 2021, it stood at 4.50%, although it reached 4.25% at the end of 2020.

Another important benefit that boosted the residential market for sale were the policies of rates and fixed terms, together with the various modifications that established the regulatory framework for housing, where the applicant base for a single loan was expanded, among other various measures implemented by the public banking.

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The interest of the mortgage credit is the price that the institutions charge for the money borrowed in the time that the loan lasts. 

The interest rate is one of the components of the Total Annual Cost (CAT), and it is one of the factors to consider before contracting a mortgage loan.

The monthly payment for the loan includes the payment of interest, amortization of capital and commissions.

There are 2 types of interest rates, fixed and variable. The fixed has favored various credits throughout 2020 and the variable is subject to changes based on the Interbank Equilibrium Interest Rate (TIIE).

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Another benefit of the credit is the reduction that can be obtained by deducting the payment of the interests of the house from the annual contributions, when presenting the annual income statement.

Since the beginning of the pandemic, the mortgage was one of the best of both the public and private banks to mitigate the crisis at the doors and judging by the results of 2020 and so far in 2021, this sector has been able to overcome the crisis and reinvent part of previously established models.