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6 clusters · 32 sources · 49 days · First seen · Last updated

Chile expands mortgage subsidies and housing finance reforms

Overview

The Chilean government has expanded housing relief measures to combat high prices and declining homeownership rates, which fell from 63% in 2017 to 52% in 2024. In a recent legislative development, the Senate unanimously approved a bill to extend and expand mortgage interest rate subsidies and the FOGAES state guarantee. This expansion increases the property value cap from 4,000 UF to 6,000 UF and raises available slots from 50,000 to 80,000, with the program now extended until May 2028. Finance Minister Jorge Quiroz noted the new limit covers approximately 88.1% of new housing stock available by early 2026. The subsidy is expected to reduce mortgage rates by approximately one percentage point. Additionally, the FOGAES guarantee aims to allow buyers to secure homes with a down payment of roughly 10%. To further stimulate the market, Congress 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 buyer benefits between 2% and 4% for typical apartments, while the Ministry of Finance estimates an average reduction of 6% to 7% across various project types. Furthermore, the government is advancing a Capital Markets Reform to lower mortgage costs. This includes the creation of the National Housing Fund (FONAVI), managed by BancoEstado, with an initial $500 million injection and potential for up to $2 billion in additional state funding to finance mortgage portfolios. The reform also introduces the Voluntary Housing Savings (AVV) program, where the state provides a 3% contribution toward a down payment after citizens save 7% of a property’s value over at least 30 months. As part of the ongoing reform debate, discussions have emerged regarding the deindexation of mortgages from the Unidades de Fomento (UF) to allow for long-term loans in pesos.

Entities

Chile · JetBrokers · BancoEstado · FOGAES · Jorge Quiróz

Timeline

  1. 11 days ago

    [BUSINESS] 4 sources
    Chile proposes capital markets reform to improve housing access

    Chile is debating a capital markets reform that includes creating the National Housing Fund (Fonavi) and exploring the possibility of offering mortgage credits in pesos instead of UF.

  2. 21 days ago

    [BUSINESS] 4 sources
    Chile proposes Capital Markets Reform to lower mortgage costs

    Chile's proposed Capital Markets Reform introduces the FONAVI fund and a state-subsidized savings program to lower mortgage barriers and increase housing liquidity.

  3. about 1 month ago

    [BUSINESS] 6 sources
    Chile approves temporary VAT exemption for new home sales

    Chile's new 12-month VAT exemption on first-time new home sales is expected to lower buyer costs by 2% to 4%, aiming to stimulate a stagnant housing market and support the construction sector.

  4. about 2 months ago

    [BUSINESS] 3 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.

  5. about 2 months 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.

  6. about 2 months 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

araucanianoticias.cl · atacamanoticias.cl · chillanonline.cl · chocale.cl · contextohn.com · deia.eus · diamenty.forbes.pl · diarioconcepcion.cl · diarioelheraldo.cl · diarioelpulso.cl · diarioestrategia.cl · elcontraste.cl · elmauleinforma.cl · finde.latercera.com · fmbox.cl · g5noticias.cl · hsbnoticias.com · lanacion.cl · lasemainedansleboulonnais.fr · latercera.com · laverdadpa.com · miradiols.cl · noticiasdeNavarra.com · pam.ma · publimicro.cl · radiopolar.com · reportediario.cl · rss.elconfidencial.com · soydeosorno.cl · vanguardia.com.mx · vmasv.cl · xataka.com.mx

This summary has been updated 4 times: see revision history