Comparing a 6.37% five-year fixed mortgage in Mexico City

V

VeraDean

First-time buyer
I have a 6.37% quote with a five-year fixed period for a property purchase around MX$15,390,000 in Mexico City. The advertised rate was lower, but arrangement fees and the applicable loan-to-value tier narrowed the gap.

Because we may move before the fixed period ends, I am leaning toward comparing total cash cost over our likely holding period rather than the headline rate alone. For recent Mexico borrowers, did you focus on APR, interest during the fixed period, or interest plus all fees? I am also trying to understand the portability and early-repayment terms before deciding.
 
Use the same assumed exit date for every quote and compare interest, required fees and any cost triggered by repaying then. APR can help, but it may not reflect your actual holding period particularly well.

How likely is the move, and would it mean selling this property or keeping it and refinancing? Portability only has much value if its conditions match what you expect to do.
 
Selling is more likely than keeping it, although the date is uncertain—probably sometime within the five years rather than imminently. That makes an early-repayment cost more important to me than portability.

I will ask each lender for cash-cost illustrations at a few possible sale dates using the same loan amount and loan-to-value. I also need to separate one-off fees from the monthly payment, since affordability is comfortable now but I do not want fees obscured by a slightly lower rate.
 
I would not discard the full-term comparison entirely. Plans to move can change, and then the rate-reset risk after year five matters. A quote that looks cheapest at an assumed sale date could be less attractive if you stay and the follow-on terms are poor or refinancing is expensive. Compare both the likely-sale case and a stay-put case rather than choosing one forecast.
 
A simple table should settle this: for each lender, list upfront cash, monthly payment, total paid by each possible sale date, early-repayment amount, and what happens after year five. Add portability separately rather than assigning it value unless you expect to use it. Most importantly, do not assume an easy refinance in the stay-put scenario; test whether the payment would remain manageable if the replacement rate were less favorable.
 
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