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Homeowners refinance to buy vacation home

Raphael and Sarah wanted to buy a vacation home in Mexico. With Perch, they were able to refinance and take out equity at low rates in order to purchase the property they wanted.

  • who: Homeowners
  • real estate goals: Vacation home in Mexico
  • issues: Accessing equity

The issue

Raphael and Sarah wanted to purchase a second property in Mexico but could not due to the high mortgage rates there. They turned to Perch to help them find a solution.

Raphael and Sarah own a house together in the Greater Toronto Area, are both salaried, and working fully remote. They wanted to buy a condo in Mexico that would enable them to work abroad for a few months of the year, then generate passive income as a short-term rental for the remainder of the year to remote workers similar to them.

They initially tried to navigate buying real estate the traditional way by contacting lenders in Mexico to see how financing worked. They were shocked at how much higher mortgage rates were, and how cumbersome the process was to buy a property as a foreign resident.

The solution

Perch’s monthly property value estimates and mortgage balance updates confirmed they had a substantial amount of equity available. By speaking with a Perch mortgage advisor, they were able to refinance and access that home equity.


  • Pre-approval: Within 24 hours
  • Approval: Next day
  • Property found in Mexico: 3 weeks later
  • Refinance funds and closing : Approximately 1 week after finding property

Key takeaways

As a homeowner, your home equity is a powerful tool that can be leveraged effectively. Be sure to speak to your advisor at least 6 months before your renewal date so you have time to understand all of your options.

Raphael and Sarah were glad that we were able to help make the process so simple because it was a straightforward refinance application instead of having to deal with a foreign bank. It was also substantial savings for them, since the mortgage rates in Canada are roughly 4% lower as of when this was published.

*Please note that names have been changed in this story to protect the privacy and identity of individuals.