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🇨🇱 Chile /Economy & Trade

Chile expands housing guarantee fund, raising home value limits to 6,000 UF

From BioBioChile · () Spanish

Translated from Spanish and summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement Approved/passed
  • Chile has expanded its Special Guarantee Fund (Fogaes) through a new law, increasing the subsidy for mortgage credits for first-time homebuyers.
  • The expanded fund will now cover homes valued up to 6,000 UF (approximately $245 million CLP) until May 31, 2028, aiming to stimulate the sale of new, unsold housing.
  • Access to the subsidy will be available in September through a BancoEstado-administered tender, with additional programs like the "Subsidio Tramo 4.000" also planned.

Chilean President José Antonio Kast has promulgated Law No. 21.748, significantly expanding the Special Guarantee Fund (Fogaes). This expansion extends the interest rate subsidy for mortgage credits, specifically targeting first-time homebuyers.

The Fogaes program will now benefit an estimated 80,000 individuals and will cover homes valued up to 6,000 UF, equivalent to approximately $245 million Chilean pesos. This measure, in effect until May 31, 2028, aims to revitalize the market by encouraging the sale of 99,613 new, unsold homes and accelerating the overall housing supply.

Access to this enhanced subsidy will not require a formal application process. Instead, it will become available in September through a tender managed by BancoEstado. Furthermore, the government plans to introduce the "Subsidio Tramo 4.000" in November 2026, which will support housing valued up to 4,000 UF and can be combined with other existing benefits.

About this summary

Originally published by BioBioChile in Spanish. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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