Chile expands mortgage subsidy, raises housing price cap to 6,000 UF

The Chilean government has introduced a bill to extend and enlarge the mortgage‑interest‑rate subsidy for first‑time homebuyers. The proposal, presented by Finance Minister Jorge Quiroz and Housing Minister Iván Poduje, adds 30,000 new slots, bringing the total to 80,000, and raises the maximum eligible property price from 4,000 to 6,000 UF. It also extends the program’s deadline to 31 May 2028 and keeps the state guarantee fund (FOGAES) that can cover up to 60 % of a loan’s value. Quiroz said the change will “prolong the rate reduction from about 4 % to 3 %,” while Poduje noted that many Chileans are “very rich for the state and very poor for the banks.” The Chamber of Deputies approved the measure unanimously, and the Senate is set to vote on it. Officials expect the reform to boost the construction sector, create jobs and improve access to homeownership for the middle class.