On Thursday, May 29, 2025, Law No. 21,748 was published in the Official Gazette. This law establishes a subsidy for mortgage interest rates for the purchase of new homes and amends certain provisions indicated therein. It is also known as the “Mortgage Payment Subsidy Law” (hereinafter, the “Law”).
In general terms, the Law establishes a state subsidy for a period of 24 months starting on May 29, 2025 (the “Subsidy”), aimed at reducing the interest rate of mortgage loans for the purchase of new homes, with the objective of improving access to housing and boosting the real estate market.
The Subsidy consists of a reduction of up to 60 basis points (bps) on the interest rate of such loans. It will be granted along with the “New Housing Support Guarantees” (as described below).
- Requirements to Access the Subsidy
The Subsidy will apply exclusively to the purchase of new homes, in first sale, with a value not exceeding UF 4,000. The full amount of the Subsidy will be transferred as a rate discount to the credit applicant, according to the formula determined by the Ministry of Finance. It will not apply to purchase agreements signed before December 31, 2024, nor to mortgage loans that have been renegotiated.
Additionally, the Law provides for the granting of up to 50,000 subsidies to individuals, of which 6,000 will be reserved for individuals meeting additional criteria. These include financing their first home, with a value not exceeding UF 3,000, and meeting the requirements established in Supreme Decree No. 1 of 2011 and Supreme Decree No. 19 of 2016, both issued by the Ministry of Housing and Urbanism.
- Amendments to Law No. 21,543 Creating the Special Guarantee Fund
The Law introduces the following state guarantee programs:
- Programa de Garantías Apoyo a la Vivienda Nueva, el cual se sujetará a las siguientes reglas:
- No podrá garantizar más del 60% del valor de la vivienda.
- No podrá garantizar créditos para compraventa de viviendas cuya promesa sea anterior al 31 de diciembre de 2024.
- El plazo de la garantía del Fondo no podrá ser mayor a la mitad del plazo del financiamiento por el cual se otorgue, que, en todo caso, no podrá ser superior a 15 años ni inferior a 5 años.
- Regional Productive Recovery Guarantee Program, aimed at companies operating outside the Metropolitan Region with annual sales between UF 25,000 and UF 1,000,000. These guarantees may not cover more than 80% of the outstanding loan balance or loans exceeding UF 250,000, with a maximum term of 12 years. Financing may only be granted until December 31, 2028, provided there is one or more applicable regulatory decrees in effect.
- Amendments to Law No. 19,281 on Lease with Promise to Purchase
Law No. 19,281 is amended to allow applications for housing subsidies to also include affordable housing built prior to the enactment of DFL 2 of 1959, provided they meet established requirements.
Additionally, the framework is made more flexible to allow greater access to homeownership through rent-to-own schemes, enabling these to be executed on new, used, or under-construction properties, as well as on homes previously sold by their owners to developers for the purpose of rent with a purchase option.
Finally, it should be noted that the payment of the Subsidy by the State to the banks will not begin until May 2026. The Ministry of Finance and the Undersecretariat of Finance will be responsible for issuing the implementing regulations, establishing calculation formulas, and supervising the program.
For more information on this matter, you may contact Julio Trucco (jtrucco@jdf.cl) or Josefina Ossa (jossa@jdf.cl).
