4,000 UF subsidy: what changed with the expansion to 6,000 UF and who can use it

Chile's 4,000 UF subsidy has changed. The benefit, which cuts the rate on mortgage loans for new homes by up to 0.6 points, was created in May 2025 with a cap of 4,000 UF per home. But Law 21,836, published in the Official Gazette on August 17, 2026, raised that cap to 6,000 UF, expanded the slots from 50,000 to 80,000 and extended the program until May 31, 2028. The UF (Unidad de Fomento) is Chile's inflation-indexed unit of account, used to price homes and mortgages.

0.6 points

Maximum rate cut

60 basis points

6,000 UF

Maximum home value

previously 4,000 UF

80,000

Total slots

previously 50,000

Source: Official Gazette, Law 21,748 and Law 21,836

View the data as a table

Maximum rate cut	0.6 points | 60 basis points
Maximum home value	6,000 UF | previously 4,000 UF
Total slots	80,000 | previously 50,000

What the 4,000 UF subsidy is and how it works

The subsidy was created by Law 21,748, published on May 29, 2025. It sets a subsidy of up to 60 basis points on the interest rate of mortgage loans, granted together with the New Housing Support Guarantee from the Special Guarantee Fund (Fogaes).

The law requires that the entire subsidy be passed on to the buyer as a rate discount. It is not money paid into your account: it is a lower rate for the life of the loan. To set that discount, the Ministry of Finance publishes monthly reference rates by type of institution.

Type of institution	Reference rate October 2026	Reference rate November 2026
Banks	4.35%	4.45%
Savings and credit cooperatives	4.52%	4.71%
Mortgage loan administrators	5.26%	5.36%
Other non-bank lenders	5.26%	5.36%

Source: Ministry of Finance, resolutions published in the Official Gazette on September 16 and October 16, 2026.

What changed: from the 4,000 UF subsidy to a 6,000 UF cap

Law 21,836 changed three rules of the original program and also raised to 6,000 UF the cap of the Fogaes guarantee that comes with it. It also authorized the Ministry of Finance to contribute up to US$175 million to the guarantee fund.

Rule	Law 21,748 (May 2025)	Law 21,836 (August 2026)
Maximum home value	4,000 UF	6,000 UF
Subsidy slots	50,000	80,000
Deadline to apply	24 months from May 2025	Until May 31, 2028
Rate cut	Up to 60 basis points	Unchanged

With the UF at CLP 41,268.88 on November 4, 2026, according to the SII, the 4,000 UF cap was worth about CLP 165 million and the new 6,000 UF cap about CLP 248 million. You can convert any UF amount into pesos with our currency converter.

Who can use the mortgage rate subsidy

Under Law 21,748, the subsidy is for individuals and the home must meet these conditions:

1. Be new: it must be the first sale of the home.
2. Not exceed the value cap: currently 6,000 UF.
3. Meet the requirements of the Fogaes New Housing Support guarantee.
4. Not come from a promise of sale signed before December 31, 2024, and not be a refinanced (novated) loan.

The law also reserves 6,000 slots for people buying their first home worth up to 3,000 UF who meet the requirements of the housing subsidies of Chile's Ministry of Housing (DS 1 and DS 19). Those subsidies are compatible with the rate cut.

The process is handled by the bank or lender: the buyer signs a simple sworn statement declaring that the purchase is eligible. The law also requires the lender to tell you if market conditions are more favorable than those it offered you.

How much the 4,000 UF subsidy saves

To size it, we calculated the monthly payment on a loan with a 20% down payment and a 4.45% rate (the banks' reference for November), with and without the maximum 0.6-point cut. It is an InfoByData estimate: it excludes insurance and fees, and each bank sets its own rate.

• Without subsidy (4.45%)
• With subsidy (3.85%)

3,000 UF home13.27 UF12.47 UF

4,000 UF home17.7 UF16.63 UF

6,000 UF home26.54 UF24.94 UF

Source: InfoByData calculation with a 20% down payment and a 25-year loan; banks' reference rate from the Ministry of Finance, November 2026

View the data as a table

	Without subsidy (4.45%)	With subsidy (3.85%)
3,000 UF home	13.27 UF	12.47 UF
4,000 UF home	17.7 UF	16.63 UF
6,000 UF home	26.54 UF	24.94 UF

Home value	Monthly saving	Monthly saving in pesos (UF CLP 41,268.88)	Saving over 25 years
3,000 UF	0.80 UF	about CLP 33,000	241 UF
4,000 UF	1.07 UF	about CLP 44,000	321 UF
6,000 UF	1.60 UF	about CLP 66,000	481 UF

For a 4,000 UF home, the original 4,000 UF subsidy saves about 1.07 UF a month: some 321 UF over a 25-year loan.

How many slots are left

As of October 23, 2026, 35,203 loans had been granted with the subsidy, 44% of the 80,000 slots, according to figures from Chile's banking association (ABIF) reported by La Tercera. There were also 123,309 eligible applications: 67,421 with commercial approval and 38,828 under review.

Maximum slots80,000

Applications with commercial approval67,421

Applications under review38,828

Loans granted35,203

Source: ABIF, via La Tercera; Law 21,836

View the data as a table

Maximum slots	80,000
Applications with commercial approval	67,421
Applications under review	38,828
Loans granted	35,203

Eligible applications already exceed the available slots, so not all of them will end up with the subsidy. The context also helps: in the third quarter, 30% of banks eased their standards for housing loans, as we explain in our article on mortgage loans.

This article is for information only and is not financial or home-buying advice. Always check current conditions with your bank.