[REVISION HISTORY]

Chile mortgage subsidy and housing finance expansion

Updated 1 time since CLSTR started tracking revisions of this situation.

What changed

2026-08-12 12:05 UTC → 2026-08-17 22:38 UTC · added ~~removed~~

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.

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