Financing a real estate purchase in Chile

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Bank financing – private investor

When buying real estate in Chile, most Chilean banks will only finance foreigners with permanent residence in Chile. If you are not a resident with regular income in Chile, it is therefore difficult to obtain a loan, even with a considerable haircut on the property value.

Nevertheless, some solutions exist with foreign banks. Some banks offer second mortgage financing, which consist in placing as collateral a property that you own in your country to finance another.

This is classic amortizing loan (monthly repayments of principal and interest) over a period that depends on the amount to be financed and the desired monthly payment. You need to meet the standard conditions of income, indebtedness and age. You can thus obtain a credit representing 70% to 80% of the appraised value of the mortgaged property.

Life insurance can sometimes also be placed as collateral.
The advantage of such a credit is that it allows any borrower with assets and/or income in his home country, to finance the purchase of real estate in Chile.

For loans of less than USD 100,000 over periods of 1 to 8 years, the personal loan can be a solution. You can get this type of loan based on your income level, without having to mortgage a property. This is particularly interesting if you do not yet have any asset.

To obtain these types of loans, the first step is to contact your bank executive.

Bank financing – companies

Some banks can finance companies willing to develop in Chile. If the company has a subsidiary in your country of origin, it is possible under certain conditions to obtain financing in Chile via this subsidiary. Contact us for more information.

Private financing

If your project is not eligible for bank financing, but you think it has the potential to interest investors, especially by generating an interesting return on investment, do not hesitate to send us a detailed presentation. We will be able to study it and offer it to our network of investors.