Glossary · Enganche
What is a down payment (enganche) in Mexico?
A down payment (enganche) is the part of an apartment's price the buyer pays when signing the contract with the developer or when taking out a mortgage. The buyer pays the balance on a schedule during construction, at delivery or with a bank loan. The size of the enganche, and whether it can be split into installments, often decides whether someone buys now or waits.
How is an enganche different from a reservation deposit (apartado)?
| Reservation deposit (apartado) | Down payment (enganche) | |
|---|---|---|
| When it's paid | When the buyer picks a unit, before the contract | When the contract is signed |
| Purpose | Hold the unit for a while | Start paying the contract price |
| Amount | Set by each developer, typically around 1-2% of the price | Typically 30% of the price. Over the past year that bar has been dropping, and some offers ask for no down payment at all |
The developer decides whether the reservation deposit counts toward the down payment. Settle this with the buyer at the reservation so there are no surprises at contract signing.
How do enganche terms affect sales?
During pre-construction sales (preventa), developers often offer several payment plans: a larger down payment with a discount, or a smaller one at a higher price. The buyer needs to understand which plan fits them, and explaining that is the sales rep's job in the meeting.
An example from practice, without any client's real numbers: a buyer can afford an MX$3.5M apartment but isn't ready to hand over a large sum up front. The rep who knows about the plan with a smaller down payment and the balance spread over construction keeps the deal. The rep who offers only the standard option loses it.
We treat the question of whether the buyer has the down payment, and where it comes from, as part of qualification. If the rep doesn't ask in the first conversations, the deal often falls apart after the reservation: it turns out the money will only come after the buyer sells another property or gets a loan approved.
Common mistakes
- Giving the enganche amount only at the meeting. A buyer who can't afford it wastes the rep's time, and a buyer who could manage a smaller one may leave without hearing about that plan.
- Not recording in the CRM where the down payment money comes from (savings, sale of another property, a loan).
- Not giving the buyer a written payment schedule after the meeting.