The Stronger Peso: What It Means for Americans Buying Property in Mexico
MoXi® | 13 February 2026
The peso is stronger than it's been in nearly two years. If you're buying property in Mexico, that sentence probably got your attention. Good. Let's talk about what it actually means for you.
As of this writing, the exchange rate sits around 17.2 pesos to the dollar, compared to nearly 21 about a year ago. In practical terms, a stronger peso means your dollars buy fewer pesos. That's a meaningful shift for anyone purchasing property or paying expenses in Mexico. But currency swings like this are completely normal.
What it does mean is that it's worth understanding how the exchange rate shows up in your transaction. Not so you can time the market. Nobody can do that. At MoXi®, we don't speculate on currency movement. We build structure around it. Our goal is to help you move forward with clear expectations and no surprises.
USD vs. Peso Contracts: What's the Difference?
The first point to understand is a legal one: all real estate sales in Mexico must be officially recorded in pesos. However, the purchase contract between you and the seller can be written in either U.S. dollars or Mexican pesos. This choice has a direct impact on your transaction.
Contracts in USD. When your purchase agreement is denominated in U.S. dollars, your financial commitment is fixed. You and the seller agree on a specific dollar amount, which will not change. For official recording purposes at closing, this dollar figure is converted to pesos, but your payment obligation remains the same.
Contracts in Pesos. If your contract is written in pesos, you are committed to paying a fixed peso amount. The dollar equivalent, however, will fluctuate with the exchange rate. If the peso strengthens between the day you sign and the day you close, you will need more dollars to cover the agreed-upon peso price. This isn't an extra fee. It's the exchange rate doing what exchange rates do.
Your real estate agent can help you understand how your specific contract is structured.
Understanding Peso-Denominated Closing Costs
No matter how your purchase contract is written, certain closing costs will always be calculated and paid in Mexican pesos. This applies to every buyer, whether you are paying cash or financing. These are standard legal and tax-related expenses required by Mexican law.
Notario Fees. The Notario Público is a specialized attorney who oversees the legal transfer of the property, registers the deed, and ensures all legal requirements are met. Their fees are set in pesos.
Acquisition Tax (ISABI). This is a property transfer tax paid to the local municipality. It is calculated as a percentage of the property's assessed value and is always paid in pesos.
Fideicomiso Setup. A fideicomiso is a bank trust used to hold title to property in Mexico. MoXi® requires a fideicomiso on all financed transactions. The setup and registration fees for this trust are typically quoted in pesos.
Miscellaneous Fees. Other costs such as appraisals, government certificates, and various administrative fees are also commonly priced in pesos.
When the peso is strong, these costs translate to a higher U.S. dollar amount. Many of these figures are calculated close to your actual closing date, which means exact numbers become clear later in the process. This is standard practice in Mexico. MoXi® builds a small buffer into our closing cost estimates to help account for potential currency movement. Your MoXi® team can walk you through the details as you approach closing.
Managing Ongoing Ownership Costs
Your relationship with the exchange rate doesn't end at closing. As a property owner in Mexico, many of your recurring expenses will be billed in pesos: HOA fees, annual property taxes (predial), utilities, and property management.
If your income is in U.S. dollars, the exchange rate will directly affect your monthly budget. A stronger peso means your dollars buy fewer pesos, increasing your costs in dollar terms. A weaker peso lowers these costs. This is the reality of owning property across currencies, and most owners adapt to it quickly.
One area of stability is your mortgage. With a MoXi® mortgage, your monthly principal and interest (P&I) payment is made in U.S. dollars, providing a predictable expense that isn't affected by exchange rate movement.
The Seller's Perspective
Sellers are also impacted by currency movements, just from the opposite side. A seller in Mexico who agrees to a sale price in USD will receive fewer pesos for those dollars when the local currency is strong. This can sometimes introduce friction during negotiations, particularly if the closing timeline is extended.
A well-written contract protects both parties. A well-drafted agreement clearly defines the exchange rate methodology and conversion mechanics, reducing ambiguity and protecting buyer and seller alike. Your real estate agent and legal team will help make sure everything is clear from the start.
How Financing with MoXi® Works
Everything above applies whether you're paying cash or financing. But when you're financing, there are a few additional details worth understanding. Closing timelines in Mexico typically run 75 to 180 days or more, regardless of how you're paying. The legal process itself takes longer than what most U.S. buyers are used to. Financing adds layers of diligence that protect both you and the lender, but it generally does not extend the timeline. What it does mean is that the exchange rate will almost certainly shift between signing and closing.
Here's how MoXi® structures it.
Date of Contract. When you sign the purchase agreement. If your contract is written in pesos, MoXi® uses the official DOF exchange rate on this date to calculate your USD purchase price. Your loan amount and loan-to-value ratio are based on this fixed USD figure and do not change.
Date of Valuation. The property appraisal is completed, establishing its value in USD. This value is locked in according to MoXi® policy.
Date of Funding. At closing, your loan funds are disbursed. Third-party, peso-denominated costs are converted at the market rate on this specific day.
This structure means your MoXi® loan basis, LTV, and associated financing costs are fixed in USD from the start. The only variables subject to the exchange rate at closing are the third-party costs and, if applicable, the final payment to the seller on a peso-denominated contract. Transparency matters to us, which is why MoXi® provides specific disclosures on this topic, so you understand exactly how currency is handled in your transaction.
The Bottom Line
Exchange rates are variable. Structure is not. The right structure eliminates surprises.
We believe in transparency. The more clearly these mechanics are understood by all parties before a contract is signed, the smoother the transaction for everyone involved.
If you are currently buying a home in Mexico, connect with your MoXi® Mortgage Advisor. We can review your specific contract and provide a clear breakdown of what to expect at closing.
If you're still exploring, don't let a currency headline change your plans. What matters is whether Mexico aligns with your long-term goals, and whether your transaction is structured correctly from day one.
That's what we're here for.
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