Naming 2014 “the year of reactivation for the housing sector” in Mexico’s already booming real estate markets, President Enrique Pena Nieto has announced that the federal government will provide more than $23 billion in an effort to boost home loans this year.
“The investments destined for individual mortgage credits will increase by more than $19.5 billion, an amount 18 percent higher than 2013,” stated Pena Nieto in a press conference. “The number of mortgage loans increased in 2013 by more than 10 percent.”
Real estate is an essential strategic component to Mexico’s overall development, with more than 43,000 new homes added to the nation’s Central Housing Registry during December of 2013 – the largest number in one month since 2011. The president’s administration is dedicated to achieving better communication between Mexico’s various housing and mortgage institutions, while moving toward sustainable urban growth and increasing the number of homeowners in all parts of the country, including popular expat communities like Puerto Vallarta, Playa del Carmen and Tulum.
Part of the plan involves providing new mortgage finance programs and special financial instruments that will promote a substantial increase in co-financing between Infonavit and Fovissste. This will boost lending for medium-sized and residential properties, as well as provide easier access to second mortgages and home improvement loans. The new financing will also be available for first time homebuyers in Mexico.
Institutions affected by the changes and new funding will include the National Housing Fund Institute (Infonavit), the Housing Fund for Social Security and Services for Government Employees (Fovissste), the National Peoples Housing Fund (Fonapo), the Federal Mortgage Society and the National Housing Commission (Conavi).
The billions of new dollars available to fund new home loans in 2014, along with a slew of additional reforms that have taken place in Mexico over recent years, have effectively renewed outdated policies and are causing investors worldwide to take notice as Latin America’s second largest economy moves to become a major player in the new world market.