Interview Coldwell Banker and David Schwendemen, President &COO of Mexlend

How is the current mortgage market in Mexico? 

"While sales have slowed a bit in some areas, San Miguel de Allende and Lake Chapala/Ajijic come to mind; sales remain quite brisk in others.  Puerto Vallarta, Cabo and Cancun, among others, are going strong.  Realtors and Developers have seen fewer buyers coming to the table with "all cash" taken from existing equity in the US and more seeking Cross Border Financing through the new Mexican Mortgage Opportunities.  Mexlend's lead volume is up 500% from this time last year and quite interestingly - many of our clients right now are from Canada.  So between the greater availability of traditional mortgages for US and other foreigners and the strong Canadian economy - 2008 is proving to be a very good year."

 I hear that financing a Mexican property can be a nightmare . . .

 "Well this depends on who you talk to.  Financing does add about 30 days to the lead times associated with closing a deal.  There is fairly extensive paperwork which needs to be executed in a highly detailed manner - but if a buyer is pre-qualified for a mortgage before signing a Purchase and Sale Agreement and a seller or developer has the property documents in order, closings take on average 60 to 90 days."

 Has the economic situation in the US caused the Baby Boomers to stop coming to Mexico?

 "Actually, quite the opposite, they're coming in even larger numbers.  In addition, we're seeing a broader spread in the average age demographic too.

While 50% of our clients are between 50 and 70; a full 30% fall into the Generation X category.  This may seem surprising - but Mexico represents a better value than most second home Mecca's in the US.  The cost of living is generally lower, rental income on a second home can be very strong and the quality of life - whether for vacation or more permanent residency is terrific.  These key issues have broad appeal to all."