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Scotiabank launches Mexico's 1st mortgage product for real estate presales

Scotiabank Inverlat SA Institución de Banca Múltiple is launching Mexico's first mortgage product to finance real estate presales, El Economista reported.

The new product purportedly gives more flexible credit terms for home buyers purchasing properties prior to the completion of construction. The new loan launched Aug. 7 in several Mexican cities, including Mexico City, Monterrey, Guadalajara, Queretaro, Puebla and Merida, Scotiabank's head of mortgage credit, Enrique Margain, reportedly said. The bank plans to expand to additional cities later.

Scotiabank expects the product to "boost presales significantly in the country," Margain said, particularly for housing types with longer construction timelines. The bank expects to place between 1,000 and 1,500 of the presale mortages in the first year, he noted, and the bank is working with 30 leading homebuilders in conjunction with the loan offering.

The country's macroeconomic stability and internal financial certainty were a key factor that enabled the institution to create this new product, the executive noted.