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3 clusters · 20 sources · 13 days · First seen · Last updated

Chile mortgage subsidy and housing finance expansion

Overview

The Chilean government proposed a bill to expand mortgage-interest-rate subsidies and the FOGAES state guarantee for first-time homebuyers. The initial proposal sought to increase the number of available slots from 50,000 to 80,000 and raise the maximum eligible property price from 4,000 UF to 6,000 UF. Officials stated the measure aimed to reduce mortgage rates from approximately 4% to 3% and support the construction sector.

The Chilean Senate subsequently approved the legislation with a unanimous 33-vote majority. The approved measure extends the program until May 2028 and maintains the FOGAES guarantee, which allows buyers to secure homes with a down payment of roughly 10%. Finance Minister Jorge Quiroz noted that the new limits would cover approximately 88.1% of new housing stock available by early 2026.

To further address a declining homeownership rate—which fell from 63% in 2017 to 52% in 2024—the Chilean Congress has also approved a temporary 12-month VAT exemption on the first sale of new properties with final municipal approval. While the full 19% tax rate is not passed to consumers, experts estimate the benefit to buyers will range between 2% and 4% after accounting for land and construction costs. These combined measures aim to assist younger generations facing restrictive credit conditions and rising costs.

Entities

FOGAES · Jorge Quiróz · Chile · JetBrokers · Iván Poduje

Timeline

  1. 1 day ago

    [BUSINESS] 2 sources
    Chile implements housing relief through VAT exemptions and mortgage subsidies

    Chile is introducing a temporary VAT exemption on new homes and expanding mortgage subsidies to combat rising housing costs and declining homeownership rates among younger populations.

  2. 6 days ago

    [BUSINESS] 5 sources
    Chile Senate approves expansion of mortgage subsidies and FOGAES guarantee

    Chile's Senate approved a bill to extend mortgage interest rate subsidies and the FOGAES guarantee, lowering rates from 4% to 3% and increasing property value caps to 6,000 UF to aid middle-class homebuyers.

  3. 13 days ago

    [POLITICS] 14 sources
    Chile expands mortgage subsidy, raises housing price cap to 6,000 UF

    Chile’s government proposes to extend the mortgage‑interest subsidy, add 30,000 slots, raise the price cap to 6,000 UF and keep the FOGAES guarantee, aiming to help middle‑class homebuyers and spur construction

Sources

chillanonline.cl · chocale.cl · diamenty.forbes.pl · diarioconcepcion.cl · diarioelheraldo.cl · diarioelpulso.cl · diarioestrategia.cl · elcontraste.cl · elmauleinforma.cl · finde.latercera.com · fmbox.cl · hsbnoticias.com · lanacion.cl · latercera.com · miradiols.cl · pam.ma · publimicro.cl · radiopolar.com · vanguardia.com.mx · xataka.com.mx

This summary has been updated 1 time: see revision history