Mexico City, Mexico, October 17th, 2023. The International Finance Corporation (IFC), a member of the World Bank Group, granted a line of credit of up to MX$1,000 million pesos (around US$55 million dollar) to HIR Casa (Bienes Programados S.A, de C.V.) in order to promote mortgage financing in Mexico.
Most of the credit will be aimed at providing mortgage financing to women looking to buy a home in Mexico. The alliance with IFC will reinforce the main objective of HIR Casa: to offer more families access to the possibility of becoming owners of their homes, offering an attractive mortgage product that understands the dynamics of the family economies, especially those led by women in Mexico.
Daniel González, General Director of HIR Casa, stated: "Today we are also launching HazteDueña, a product that will help us build a more equitable country with greater equality of opportunities for all people. We are very close to a 50/50 placement between men and women, and with the transaction closed with IFC, we are confident that we will reach that goal very quickly. This product, along with those we will launch in 2024, will allow us to continue growing our business, giving alternatives to many more families in Mexico."
Since its creation in 1995, HIR Casa has managed to become the leader in the self-financing market in the country; Currently, 45% of its clients are women, presenting itself as an alternative for all people who are not served by banks, or who are looking for a personalized service that understands the various types of income in Mexican families.
Juan Gonzalo Flores, Country Manager of IFC in Mexico, added: "The granting of mortgage credit in Mexico is concentrated in a few banks. With this loan, IFC contributes to promoting an innovative mortgage financing model in the market from a Non-Bank Financial Institution (NBFI). In addition, the investment has a solid gender angle: more than 50% of the portfolio will focus on women, who have less access to housing loans in the country."
The horizon for housing financing in Mexico faces barriers such as low financial inclusion and the difficulties implied in verifying variable income. According to data from the National Banking and Securities Commission (CNBV), only 39% of mortgage loans in the country are granted to women. Only 4% of adults in Mexico have a home loan, less than the average of 7% in Latin America and the Caribbean. The main reason for the shortage of home loans in Mexico is that between 55% and 60% of the population works in the informal sector or mixed economy, with variable or undeclared income, which makes it difficult for them to qualify for traditional bank mortgages. Women face additional obstacles, as, according to World Bank data, female labor force participation in Latin America and the Caribbean is 48.5% in 2021, lower than men's participation of 72.5%.
About HIR Casa
HIR Casa is part of Grupo HIR, one of the most important real estate/financial conglomerates in the country with more than 60 years of history, and began operations in 1995. Its main activity is the sale, origination and administration of mortgages through the Real estate self-financing format that provides an alternative to the banking offer in Mexico to buy, build or remodel real estate. As of today, it has a portfolio of more than MXN$19,000 million throughout the national territory, as well as a solid financial position that has allowed it to continue growing in traditional and digital channels. During 2023 alone, and confirming its leadership, HIR Casa has raised MXN$4.8 billion in different financing sources, including the Mexican Stock Exchange, the IFC and different loans with the main banks in the country.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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