Buying a house: 3 savings instruments that will help you collect the down payment

27, 2021

5 min read

This article was translated from our Spanish edition using AI technologies. Errors may exist due to this process.

Collecting the down payment to buy a home can be one of the biggest financial challenges people face, especially if you are part of the millennial generation. Even with the support of a mortgage loan, acquiring real estate requires a strong investment due to the expenses of deed, valuation, etc. Not to mention the pressure that inflation can put on your pocket.

If you have the plan to invest in a property, there are savings and investment instruments that can help you collect the down payment to buy a house or apartment. The Vivanuncios real estate portal explains that these tools will not only help you collect the down payment, but will also help your money not lose its value.

Treasury Certificates (CETES)

Image: CETES via Facebook

CETES are popular savings and investment instruments characterized by their security and accessibility.

They are a securities debt instrument issued by the Federal Government, in other words, these financial instruments function as promissory notes offered by the government to raise funds for public works. In exchange for your loan, the government gives you a return or payment after a set term.

The performance of the CETES varies according to the period in which it is acquired, with terms of:

  • 28 days.
  • 91 days or 3 months.
  • 182 days or 6 months.
  • 365 days or 1 year.

It should be noted that the gross rate of return changes every week, although it is generally between 4.19 and 4.21, so that CETES acquired under the same period of time but in different weeks will have a different annual rate.

Although the security of being backed by the Government of Mexico is one of the reasons behind the popularity of CETES, the main attraction of this savings instrument is its accessibility: any resident of Mexico of legal age can buy CETES through entities banks, investment houses or on the Cetes Directo site from 100 pesos, making them the perfect tool to save for a house regardless of your ability to save.

Bank promissory notes


Another popular option of which financial instrument to invest in is bank promissory notes, thanks to the security that they are backed by established institutions, in addition to the fact that you can obtain this security at any bank.

The mechanics of saving with a bank note is very simple, since these are generally associated with a bank account. In a similar way to CETES, to use this tool you only have to allocate an amount to the bank for a certain term, an institution that at the end of the term will return the money plus a small percentage of profit.

Depending on the bank, the terms of the promissory notes can range from one day to one year, with the longest terms being those that grant the most profits. The most common terms to invest in bank notes are 14, 28, 90, 182 days or 365 days.

In December 2020, Banco de México registered an average gross rate of 1.46% for the 28-day notes, 1.87% for the 91-day notes and 2.18 for the 182-day notes.

Investment funds


Investment Funds are one of the savings and investment instruments that can give you a higher return, however in exchange for this they are considered a medium risk tool due to their volatility.

Through this investment tool, financial entities bring together a group of people, who grant money to the entity in order for it to invest the total sum of money in different instruments for a specified period of time.

At the end of the period of time, which can be short, medium or long, the financial institution returns the money and its performance to its owners, with the exception of a commission percentage on profits.

There is no specific duration of investment terms as well as an established percentage return that you can obtain for your money, since these conditions change depending on the Investment Fund scheme.

Now that you know in which financial instrument to invest, you can grow your savings to cover the down payment and deed expenses of your new property.

If you have already managed to save for a house, at Vivanuncios you can easily search for the property of your dreams anywhere in Mexico without having to leave home. What are you waiting for to grow your wealth?

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