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Chile Offers Mortgage Interest Rate Subsidy for New Home Buyers
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By Anya Schmidt | SANTIAGO – 2025/06/24 10:46:01
The Chilean government is providing a dividend subsidy to reduce mortgage interest rates by up to 0.6% for individuals acquiring new homes. This benefit includes a state guarantee to facilitate better interest rates, but is exclusively for natural persons.
Who Can Access the Dividend Subsidy?
To qualify for the subsidy, several requirements must be met:
- The home’s maximum value must be 4,000 units of progress (UF).
- A signed promise or sale agreement must be dated January 1, 2025, or later.
- The program will grant 50,000 subsidies, wiht 6,000 reserved for DS15 beneficiaries meeting specific criteria (first home and a value cap of 3,000 UF).
This subsidy is not applicable for sale agreements predating December 31, 2024, or for mortgage loan renewals.
how to Access the Dividend Subsidy
No request is necessary. The subsidy is automatically granted to those who meet the following conditions:
- Must be a natural person.
- Must be within the first 50,000 purchase operations from the law’s enactment or within two years, whichever occurs first.
The benefit applies directly to the interest rate of the mortgage credit, lowering it up to 60 base points (equivalent to 0.6%).
How the Subsidy Works
The subsidy directly lowers the mortgage credit’s interest rate by up to 60 base points (0.6%). As an example, a new home valued at 4,000 UF, with 90% financed over 30 years, could see a monthly dividend decrease of up to $100,000.
The subsidy also includes a state guarantee covering 60% of the property value.
Once awarded, the subsidy must be used within 12 months from the law’s publication.
