Law No. 21,836: further amendments to the mortgage interest subsidy for the purchase of new homes
In May 2025, Act No. 21,748 was published, establishing a new mechanism designed to facilitate access to finance for the purchase of new homes and, at the same time, to help revitalise the property market.
The Act introduced a subsidy of up to 60 basis points on the interest rate for mortgage loans intended for the purchase of new homes, a benefit which must be granted in conjunction with a state guarantee under the New Housing Support Guarantee Programme.
In its original design, the scheme provided for a maximum of 50,000 subsidies and applied to new homes whose value did not exceed 4,000 UF.
In this context, on 17 August 2026, Act No. 21,836 was published, extending the duration and scope of the scheme established by Act No. 21,748 and also amending certain provisions of Act No. 21,543 relating to FOGAES.
Among the main amendments are the following:
- Increase in the number of subsidies: the maximum number of subsidies is increased from 50,000 to 80,000.
- Increase in the maximum property value: the benefit, originally limited to properties valued at up to 4,000 UF, may now be applied to properties whose value does not exceed 6,000 UF.
- Extension of the scheme’s duration: the deadline for accessing the scheme has been extended to 31 May 2028.
- Extension of the New Housing Support Guarantee: accordingly, the maximum value of properties eligible for the FOGAES guarantee scheme has also been increased from 4,000 to 6,000 UF.
Furthermore, the new law authorises fiscal contributions to the Special Guarantees Fund of up to US$175 million, intended to support the expansion of this scheme.
Law No. 21,836 therefore entails a significant expansion of the range of property transactions eligible for this scheme, by including higher-value homes, increasing the number of subsidies available and temporarily extending its scope, with implications for potential buyers as well as developers, estate agents and financial institutions.
