Law extends mortgage subsidy to new homes until 2028

National Congress approves extension of housing subsidy

The National Congress of Chile approved, and the President of the Republic, José Antonio Kast Rist, enacted, Law No. 21,836, published this Monday, August 17, 2026, in the Official Gazette of the Republic of Chile, issue 44,526, First Section. The statute amends Law No. 21,748, which establishes a subsidy on the mortgage interest rate for the acquisition of new homes, in order to extend its validity and expand its financial scope.

The new law was signed in Santiago on August 12, 2026, by the President together with ministers Jorge Quiroz Castro (Finance), Daniel Mas Valdés (Economy, Development and Tourism), and Iván Poduje Capdeville (Housing and Urbanism), and was transcribed by the Undersecretary of Finance, Sebastián Vallebona Espinosa.

Expansion of amounts and deadlines

The key amendments introduced by Law No. 21,836 to current legislation are as follows:

• Expanded subsidy cap: the maximum subsidy amount increases from 50 UF to 80 UF, significantly increasing the financial support households can receive when purchasing a new home with a mortgage loan.
• Expanded financing: the financing limit covered by the subsidy rises from 4,000 UF to 6,000 UF, allowing access to the benefit for higher-value homes.
• Extended validity: the deadline for using the subsidy is changed from the original 24 months following the publication of Law No. 21,748 to May 31, 2028.

Amendments to the Special Guarantee Fund

The law also amends the sixth transitional article of Law No. 21,543, which created the Special Guarantee Fund. In line with the amendments to the subsidy law, the fund’s financing cap is raised from 4,000 UF to 6,000 UF, and its operating period is extended until May 31, 2028. These coordination measures between both statutes seek to ensure that the guarantee system is aligned with the expanded subsidy coverage.

Fiscal resources for the Guarantee Fund

In its transitional provisions, the statute authorizes the Ministry of Finance to make fiscal contributions to the assets of the Special Guarantee Fund for a total amount of up to 175 million US dollars, or its equivalent in Chilean pesos. Such contributions may be made through one or more exempt decrees and paid in one or more transfers until May 31, 2028. Additionally, the statute orders the Ministry of Finance to adjust, within 30 days after publication, the exempt decrees issued under Law No. 21,748 and the transitional article of Law No. 21,543.

Impact for new home buyers

The expansion of the mortgage subsidy represents direct relief for Chilean families seeking to acquire a new home with credit. By raising the maximum subsidy amount and the financing cap, the door is opened to a broader segment of applicants and to higher-value homes. The extended deadline until 2028 provides legal certainty to those who have already started procedures or plan to do so, guaranteeing the continuity of the benefit in a housing market context that faces price pressures and construction costs.

Source: Official Gazette of the Republic of Chile, number 44,526, Monday, August 17, 2026, Section I (Laws, Regulations, Decrees, and Resolutions of General Order), pp. 1-2 (official reference: CVE 2854867).