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Buying a home in Mexico is the single largest financial decision most people will ever make.
The average mortgage in the country now exceeds $2.3 million MXN, and you will spend the next 15 to 20 years paying it off.
Over that period, the difference between a mortgage at 9.15% and one at 11.20% on a $2 million peso property is not a rounding error — it is over $800,000 pesos in additional interest.
That is enough to buy a car, fund a child’s education, or make a significant investment.
Yet most homebuyers in Mexico walk into the first bank that offers them a pre-approval and sign without comparing. CONDUSEF’s own data shows that fewer than 30% of mortgage applicants compare offers from more than one institution before committing.
We analyzed the current mortgage products from three of Mexico’s most active mortgage lenders — BBVA, Banorte, and Scotiabank — using official rate sheets, CAT calculations, and published terms valid through the first half of 2026.
Here is the complete comparison that could save you hundreds of thousands of pesos over the life of your loan.
Rates, Costs, and Terms Compared
The numbers below represent the core financial terms that determine how much you actually pay. These are the metrics that should drive your decision.
| Feature | BBVA (Hipoteca Fija) | Banorte (Hipoteca Fuerte) | Scotiabank (Valora) |
|---|---|---|---|
| Starting Interest Rate | From 9.05% annual fixed | From 9.15% annual fixed | From 9.50% annual fixed (7-yr) / 10.75% avg weighted |
| Rate Type | Fixed for entire term | Fixed for entire term | Fixed, decreases with on-time payments |
| CAT (Total Annual Cost) | 13.1% avg without VAT | 12.6% avg without VAT | 13.7% avg without VAT |
| Maximum Financing | Up to 90% (95% with Infonavit) | Up to 90% (95% with Infonavit) | Up to 95% of property value |
| Loan Terms | 5, 10, 15, or 20 years | Up to 20-25 years | 5, 7, 10, 15, or 20 years |
| Minimum Down Payment | 10% | 10% (5% with Infonavit) | 5-20% depending on scheme |
| Origination Fee | Varies by product | Varies by product | Charged as Comisión Contratación |
| Early Repayment Penalty | None | 2% of prepaid balance in first 3 years | None (if origination fee was paid) |
At first glance, BBVA appears to win on rate with the lowest floor at 9.05%. But mortgage costs extend far beyond the interest rate. Insurance premiums, origination commissions, appraisal fees, and ongoing account charges all contribute to the CAT — and that is where the picture changes. Banorte’s lower CAT of 12.6% means their total package costs less even though their starting rate is 0.10% higher. Meanwhile, Scotiabank’s unique rate-reduction mechanism rewards long-term borrowers who never miss a payment, potentially closing the gap over time.
The table below covers the requirements, insurance, and additional benefits that affect both your eligibility and long-term experience with each lender.
Requirements, Insurance, and Benefits Compared
| Feature | BBVA (Hipoteca Fija) | Banorte (Hipoteca Fuerte) | Scotiabank (Valora) |
|---|---|---|---|
| Minimum Income | Varies by credit profile | $10,000 MXN gross monthly | $7,500 with Infonavit / $10,000 without |
| Minimum Age | 18 years | Not specified | 25 years |
| Life Insurance | Required (can use own insurer) | Included — 0.60 per thousand monthly on outstanding balance | Required (life + unemployment + property damage) |
| Property Damage Insurance | Required | Required | Required |
| Appraisal Fee | Charged separately | Charged separately | Charged separately |
| Infonavit Compatible | Yes (Tu Opción México, FOVISSSTE) | Yes (cofinancing available) | Yes (Apoyo Infonavit) |
| Tax Deductibility | Yes — real interest is deductible | Yes — real interest is deductible | Yes — real interest is deductible |
| Rate Reduction for On-Time Payment | No automatic reduction | Bonification: one free payment every 3 years of perfect payment | Yes — rate decreases with punctual payments |
The standout detail here: Banorte has the lowest CAT at 12.6%, meaning the total annual cost of their mortgage — including all fees, insurance, and interest — is lower than both BBVA and Scotiabank. However, Banorte charges a prepayment penalty in the first three years, which neither BBVA nor Scotiabank does (under certain conditions). These details matter enormously over a 20-year commitment.
BBVA México: The Market Leader
BBVA is the largest mortgage lender in Mexico. Their Hipoteca Fija product has been a benchmark in the market for years, and they offer the widest range of mortgage products among the three banks.
BBVA Mortgage Products
Hipoteca Fija (Fixed Mortgage): The flagship product for home acquisition. Fixed interest rate starting from 9.05% annually, with a CAT of 13.1% average. Financing up to 90% of the property value with terms of 5, 10, 15, or 20 years. Monthly payments remain constant throughout the entire life of the loan, giving you complete predictability over your budget.
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Hipoteca Creciente (Growing Mortgage): This option starts with lower monthly payments that increase gradually over time. Designed for younger professionals whose income is expected to grow. The benefit is lower initial payments, but you pay more in total interest compared to the fixed mortgage.
Tu Opción México (Infonavit Cofinancing): A combined product where BBVA and Infonavit jointly finance the property. You can use your Infonavit subsidy and savings as part of the down payment, with BBVA financing the remainder. Financing up to 90% of the property value. Available for new and used homes.
FOVISSSTE Program: For government workers affiliated with ISSSTE. Allows you to use your housing sub-account balance to complement a BBVA mortgage. Fixed annual rate starting from 9.90% with a CAT of 13.6%.
Muda Tu Hipoteca (Mortgage Portability): If you currently have a mortgage with another institution, BBVA offers to transfer it with potentially better terms and rates.
BBVA Strengths
Lowest starting rate. BBVA’s floor of 9.05% is the lowest among the three banks, though the rate you receive depends on your credit profile, loan-to-value ratio, loan amount, and term. Payroll customers at BBVA receive preferential rates and may also get their appraisal fee refunded.
No prepayment penalty. You can make additional payments or pay off the entire mortgage early at any time without penalty. This is a significant advantage over Banorte, which charges 2% in the first three years.
Widest product range. With five distinct mortgage products including Infonavit cofinancing, FOVISSSTE integration, portability, and both fixed and growing payment options, BBVA covers virtually every homebuyer scenario.
Digital experience. BBVA’s mortgage simulator allows you to estimate payments, compare products, and begin the pre-approval process entirely online. Their app provides ongoing management of your mortgage including payment tracking and early payment options.
Sustainable home discount. BBVA offers preferential terms for energy-efficient or sustainable homes, including potential rate reductions.
BBVA Weaknesses
Higher CAT than Banorte. Despite the lowest starting interest rate, BBVA’s average CAT of 13.1% is higher than Banorte’s 12.6%. This means that once you factor in all fees, insurance costs, and commissions, BBVA’s total cost is higher. The difference in CAT translates to real money — on a $2 million mortgage over 20 years, half a percentage point in CAT represents approximately $200,000 in additional total cost.
Insurance costs add up. BBVA requires both life insurance and property damage insurance. While you can contract with your own insurer (which may be cheaper), the default option through BBVA’s insurance partner adds to the monthly payment. The total insurance cost over a 20-year mortgage can exceed $150,000 pesos.
Banorte: The Best Total Cost
Banorte has been aggressively expanding its mortgage market share and currently offers the lowest CAT among the three banks. Their Hipoteca Fuerte product is designed to be transparent and competitive.
Banorte Mortgage Products
Hipoteca Fuerte (Standard Acquisition): Fixed annual interest rate starting from 9.15% with tiered rates based on credit profile: 9.15%, 9.85%, 10.15%, 10.55%, and 11.15%. CAT average of 12.6%. Financing up to 90% traditionally or up to 95% with Infonavit cofinancing. Terms up to 20 years. Payment of $9.17 per thousand pesos borrowed per month at the 20-year term.
Hipoteca Fuerte a Tu Medida Pagos Fijos (Customized Fixed Payments): A variation with a fixed annual rate of 11.08% and extended terms up to 25 years. CAT of 13.1%. Designed for borrowers who need lower monthly payments through longer terms.
Hipoteca Fuerte con Bonificación (With Bonus): This unique product rewards on-time payment. If you make every single payment on time for three consecutive years, Banorte applies one full monthly payment as an early payment to your principal — effectively giving you a free payment every three years. Over a 20-year mortgage, this means up to 6 bonus payments applied to your principal, significantly reducing the total interest paid and shortening the effective term.
Mejora de Hipoteca (Mortgage Improvement/Portability): For borrowers looking to transfer their mortgage from another bank, Infonavit, or FOVISSSTE. Rates start from 8.68% — the lowest rate in this entire comparison for any product type.
Banorte Strengths
Lowest CAT. At 12.6% average, Banorte’s total annual cost is lower than both BBVA (13.1%) and Scotiabank (13.7%). Over 20 years, this difference compounds into substantial savings.
The Bonification Program. The concept of receiving a free monthly payment every 3 years of perfect payment is unique to Banorte among these three banks. On a $2 million peso mortgage with a monthly payment of approximately $18,340, each bonification is worth $18,340 applied directly to principal reduction. Six bonifications over 20 years equals approximately $110,000 in accelerated principal payments — which then reduces the total interest charged on the remaining balance.
Lowest portability rate. At 8.68% for mortgage transfers, Banorte offers the most competitive rate for borrowers switching from another institution. If you currently have a mortgage at 11%+ with another bank, transferring to Banorte could save you hundreds of thousands of pesos.
Transparent fee structure. Banorte publishes their complete tiered rate structure (9.15% to 11.15%) openly, so you know exactly which rate you qualify for based on your profile before committing.
Banorte Weaknesses
Prepayment penalty in the first 3 years. This is Banorte’s most significant disadvantage. If you want to make a large lump-sum payment or pay off the mortgage entirely within the first three years, Banorte charges 2% of the prepaid balance. On a $1.5 million early payment, that is $30,000 in penalties. You can opt for a higher interest rate version without this penalty, but then you lose the rate advantage.
This penalty primarily affects borrowers who expect to sell the property or receive a large windfall (inheritance, business sale, bonus) within the first three years. If you plan to hold the property for the full term, this penalty is irrelevant.
Higher minimum income. Banorte requires $10,000 MXN gross monthly income minimum, which excludes lower-income buyers who might qualify at Scotiabank with Infonavit support at $7,500.
Scotiabank: The Flexible Challenger
Scotiabank México offers mortgage products with a unique feature none of the other two banks match: automatic interest rate reduction for on-time payments.
Scotiabank Mortgage Products
Valora (Standard Acquisition): Fixed interest rate with weighted average of 10.75% annually for the 20-year term. Rates vary by term: 10.41% for 7 years, 10.55% for 10 years, 10.51% for 15 years, and 10.63% for 20 years. CAT of 13.7% average. Financing up to 95% of property value. Terms of 5, 7, 10, 15, or 20 years.
Liquidez Vivienda (Home Equity): Use your existing home as collateral to obtain a new loan for purchasing a second property. Rates start from 9.50% for the 5-year term. Requires minimum income of $20,000 MXN.
Scotiabank Strengths
Rate reduction for punctual payment. Scotiabank’s most distinctive feature: your interest rate automatically decreases if you maintain a perfect payment record. Additionally, your loan term also decreases with on-time payments. This dual benefit means punctual borrowers effectively get a better deal over time without needing to refinance.
Highest maximum financing. Scotiabank offers up to 95% financing of the property value, meaning your minimum down payment can be as low as 5%. BBVA and Banorte typically require 10% down (though Banorte can reach 95% specifically with Infonavit cofinancing). For first-time buyers struggling to save for a large down payment, this is a meaningful advantage.
No prepayment penalty (once the origination fee is covered). You can make additional payments at any time and any amount, applied directly to principal reduction.
Lowest minimum income with Infonavit. At $7,500 MXN monthly with Apoyo Infonavit, Scotiabank has the most accessible entry point for lower-income homebuyers.
7-year term option. Scotiabank is the only one of the three offering a 7-year mortgage term. For borrowers who can afford higher monthly payments, this dramatically reduces total interest paid.
Scotiabank Weaknesses
Highest CAT. At 13.7% average, Scotiabank’s total annual cost is the highest of the three banks. This is 1.1 percentage points above Banorte — which over 20 years translates to a significant cost difference.
Highest average interest rate. The weighted average rate of 10.75% is notably higher than BBVA’s 9.05% floor or Banorte’s 9.15% floor. While the rate-reduction benefit partially offsets this, you start from a higher base.
Higher minimum age. At 25 years, Scotiabank excludes younger buyers who might qualify at BBVA (18+) or Banorte.
The Real Cost: What You Actually Pay Over 20 Years
The numbers below show the total cost of purchasing a home valued at $2,000,000 MXN with a 20% down payment ($400,000), financing $1,600,000 MXN over 20 years at each bank’s best available rate.
| Metric | BBVA (9.05%) | Banorte (9.15%) | Scotiabank (10.75%) |
|---|---|---|---|
| Monthly Payment | ~$14,530 | ~$14,620 | ~$16,020 |
| Total Paid Over 20 Years | ~$3,487,200 | ~$3,508,800 | ~$3,844,800 |
| Total Interest Paid | ~$1,887,200 | ~$1,908,800 | ~$2,244,800 |
| Interest as % of Loan | 117.9% | 119.3% | 140.3% |
The difference between Scotiabank and BBVA on a $1.6 million loan: approximately $357,600 pesos over 20 years. That is $1,490 extra per month, every month, for two decades.
Even the difference between BBVA and Banorte — a mere 0.10 percentage point in interest rate — adds up to approximately $21,600 over 20 years. This is why comparing mortgages is not optional.
But Wait — Factor in the CAT
The interest rate alone does not tell the complete story. When you include all fees, commissions, and insurance costs through the CAT:
| Metric | BBVA (CAT 13.1%) | Banorte (CAT 12.6%) | Scotiabank (CAT 13.7%) |
|---|---|---|---|
| Effective Total Annual Cost | 13.1% | 12.6% | 13.7% |
| Estimated Total Cost (20 years) | ~$3,680,000 | ~$3,590,000 | ~$3,780,000 |
| Additional Cost vs Cheapest | +$90,000 vs Banorte | Baseline (cheapest) | +$190,000 vs Banorte |
When measured by CAT — which is the true cost — Banorte wins despite having a slightly higher interest rate than BBVA. Banorte’s lower fees and free insurance components more than offset the 0.10% rate difference.
The Banorte Bonification Effect
If you maintain perfect payments for 20 years and receive all 6 bonifications (one every 3 years), each worth approximately one monthly payment applied to principal, the effective cost decreases further. Estimated savings from the bonification program: approximately $110,000 to $140,000 in reduced interest charges over the life of the loan. This widens Banorte’s cost advantage even further.
Which Bank Should You Choose?
Choose BBVA if:
You want the absolute lowest starting interest rate available (9.05%). You are a BBVA payroll customer who will benefit from preferential terms and the appraisal refund. You plan to make significant early payments or pay off the mortgage within the first few years (no penalty). You want the widest range of product options including growing payment structures. You value the strongest digital banking platform for ongoing mortgage management.
Choose Banorte if:
You want the lowest total cost over the life of the mortgage (lowest CAT at 12.6%). You plan to hold the property and the mortgage for the full 20-year term without major prepayments in the first 3 years. You want the bonification benefit of free payments every 3 years for perfect payment history. You are switching from another bank or Infonavit (portability rate of 8.68% is the lowest available). You want transparent, published rate tiers so you know exactly what you qualify for.
Choose Scotiabank if:
You need maximum financing (up to 95% LTV) because your down payment is limited. You want a shorter term option like 7 years to minimize total interest. You value the automatic rate reduction for punctual payments over the life of the loan. Your income is between $7,500 and $10,000 MXN monthly (Scotiabank with Infonavit has the lowest income requirement). You are 25+ years old but under the age limits for the other banks.
Before Signing: The Complete Mortgage Checklist
A mortgage is a 15-to-20-year commitment. These steps ensure you get the best possible deal.
Get pre-approved at all three banks. The pre-approval process is free and does not commit you to anything. Each bank will provide a specific rate, term, and payment amount based on your profile. Compare these personalized offers — not just the advertised rates — because the rate you receive depends on your individual credit score, income level, down payment percentage, and the specific property.
Use CONDUSEF’s mortgage simulator. The free tool allows you to compare products from all major banks using standardized calculations. Input the property value, your down payment, desired term, and income — the simulator ranks available products by total cost.
Request the Oferta Vinculante. By law, any bank that offers you a mortgage must provide a binding offer (oferta vinculante) valid for at least 20 calendar days. This document locks in the specific rate and terms, giving you time to compare with other institutions without the offer changing.
Calculate ALL upfront costs. The down payment is just the beginning. Budget for the appraisal fee (typically $3,000-$8,000 MXN), notary fees (3-9% of the property value depending on the state), property tax registration, insurance premiums, and the origination commission. Total upfront costs beyond the down payment typically range from 5% to 10% of the property value.
Understand the insurance requirements. Every mortgage in Mexico requires life insurance and property damage insurance. Some banks include these in their product (like Banorte’s life insurance), while others require you to contract them separately. You have the legal right to use your own insurance provider — which can be significantly cheaper than the bank’s default partner. Compare insurance quotes independently before accepting the bank’s offer.
Check for Infonavit or FOVISSSTE benefits. If you are an active contributor to Infonavit or FOVISSSTE, your accumulated balance and employer contributions can significantly reduce your required down payment. All three banks offer cofinancing programs that combine your government housing benefits with a bank mortgage for maximum purchasing power.
Verify the property. Before the bank will finalize your mortgage, the property must pass an appraisal and legal verification. Ensure the property has clear title (escrituras), is free of liens, has current property tax payments (predial), and meets the bank’s minimum value requirements. A property with legal issues can delay or kill your mortgage approval.
Read the entire contract. Pay specific attention to: the fixed interest rate and whether any conditions could change it, late payment penalties and how they are calculated, the insurance requirements and costs, the prepayment terms (especially Banorte’s 3-year penalty), and the total amount you will repay over the full term including all fees and insurance.
The Bottom Line
For most homebuyers in Mexico in 2026, Banorte offers the best total cost with the lowest CAT (12.6%), competitive rates starting at 9.15%, zero-cost life insurance, and the unique bonification program that rewards perfect payment history. BBVA offers the lowest entry rate (9.05%) and the most flexibility for early payments without penalty, making it ideal for buyers who may refinance or sell within the first few years. Scotiabank is the most accessible for first-time buyers with limited savings, offering up to 95% financing and the lowest income requirement with Infonavit.
The average mortgage interest rate in Mexico’s banking sector has hovered around 10.4% for the past year and a half, remaining relatively stable even as Banxico’s reference rate dropped from over 11% to 7%. However, with the reference rate now at its lowest since May 2022, competitive pressure between banks is intensifying. The rates available today from all three institutions are among the best in recent years.
Whatever you decide, the most important step is comparing. The difference between the best and worst mortgage offer on a standard home purchase in Mexico can exceed $500,000 pesos over the life of the loan. That is not money you can afford to leave on the table when you are making the biggest financial decision of your life.