Chile’s Chamber of Deputies has unanimously approved legislation to expand the state’s mortgage interest rate subsidy program, signaling a push to broaden access to homeownership for first-time buyers.
The bill, which now advances to the Senate, increases the total number of available subsidy slots by 30,000, bringing the cumulative total to 80,000.
Additionally, the measure raises the maximum value of properties eligible for the benefit from 4,000 to 6,000 UF (Unidades de Fomento), the inflation-indexed currency unit widely used in Chilean real estate transactions.
The expansion of the subsidy program, backed by the Special Guarantees Fund (Fogaes), aims to stimulate demand in the housing market by reducing borrowing costs for a broader segment of buyers.
By increasing the property value cap, the legislation targets a higher tier of the market, potentially benefiting developers and lenders who have faced softer demand in the mid-range segment.
The unanimous vote in the lower house suggests strong cross-party support for the housing affordability initiative.