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Foreigners can obtain mortgages in Chile, but the process requires legal residency, local credit history, and typically a Chilean guarantor. The mortgage market offers loans to non-residents with higher down payments and stricter requirements compared to Chilean citizens.
As of September 2025, Chilean banks provide mortgage financing to foreigners who meet specific residency and financial criteria. Most lenders require at least one year of legal residence in Chile, proof of stable local income, and a down payment of 30% of the property value.
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Chilean banks offer mortgages to foreigners with legal residency status, requiring higher down payments and local credit history. Interest rates range from 4.4% to 14% depending on risk profile, with loan terms up to 30 years.
Most foreign buyers need a Chilean guarantor and must provide extensive documentation including residency permits, local income proof, and medical certificates.
| Requirement | Details | Impact on Approval |
|---|---|---|
| Residency Status | Temporary (min. 1 year) or Permanent residence | Essential - No mortgage without legal residency |
| Down Payment | 30% of property value (typical) | Higher than citizens (10-20%) but standard for foreigners |
| Credit History | Local Chilean credit record preferred | Lack of history may result in rejection |
| Income Verification | Stable Chilean income or local tax returns | Critical for loan amount determination |
| Chilean Guarantor | Non-spouse Chilean citizen required | Often mandatory for loan approval |
| Interest Rate | 4.4%-14% depending on risk profile | Higher rates increase monthly payments |
| Loan Term | Up to 30 years (age limits apply) | Longer terms reduce monthly payments |
Do foreigners qualify for mortgages in Chile?
Yes, foreigners can obtain mortgages in Chile, but they must meet stricter requirements than Chilean citizens.
Chilean banks offer mortgage loans to non-residents who have legal residency status in the country. As of September 2025, major lenders including BancoEstado, Banco Santander Chile, and Banco de Chile actively work with foreign borrowers.
The Chilean mortgage market requires foreigners to demonstrate financial stability through local income sources, maintain legal residency for at least one year, and typically provide a Chilean guarantor. Banks evaluate foreign applicants more cautiously due to perceived higher risk profiles.
Most successful foreign mortgage applicants have permanent residency status, established local credit history, and stable employment in Chile. The approval process typically takes 30-60 days longer than for Chilean citizens.
Foreign buyers should expect less favorable terms compared to local residents, including higher down payment requirements and potentially elevated interest rates.
What types of visas or residency status do I need to apply?
You need legal residency status in Chile to qualify for a mortgage, with temporary or permanent residency both accepted by most banks.
Temporary residency holders must have lived in Chile for at least one year before becoming eligible for mortgage applications. Work visa holders typically need two years of residence before qualifying for permanent residency, which improves mortgage approval chances.
Permanent residency holders receive preferential treatment from Chilean banks and face fewer restrictions during the mortgage application process. Tourist visas do not qualify for mortgage applications under any circumstances.
You must obtain a RUT (Rol Único Tributario) or RUN (Rol Único Nacional) tax identification number as part of your residency documentation. This number is essential for all financial transactions in Chile, including mortgage applications.
Banks prefer applicants with permanent residency status because it demonstrates long-term commitment to living in Chile and reduces the perceived risk of default.
How long must I live or work in Chile before being eligible?
Most Chilean banks require at least one year of legal residence in the country before accepting mortgage applications from foreigners.
The one-year residency requirement applies to both temporary and permanent residents, though permanent residents typically receive more favorable loan terms. Banks use this period to evaluate your financial stability and commitment to remaining in Chile.
During this waiting period, you should establish local credit history by opening Chilean bank accounts, obtaining credit cards, and making regular transactions. Building a positive credit profile significantly improves your mortgage approval chances.
Some banks may consider applications from foreigners with less than one year of residency if they can demonstrate exceptional financial circumstances, such as high-value assets or substantial local income. However, these cases are rare and typically involve premium banking relationships.
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Do Chilean banks require a local credit history?
Yes, Chilean banks strongly prefer applicants with established local credit history, and lack of credit history can result in mortgage rejection.
Banks evaluate your Chilean credit score through DICOM (Cámara de Comercio de Santiago) and other local credit bureaus. A positive local credit history demonstrates your ability to manage debt responsibly within the Chilean financial system.
Some banks may accept foreign credit histories from your home country, but this requires additional documentation and verification processes. International credit reports must be translated into Spanish and authenticated by Chilean consulates.
Building local credit history typically takes 6-12 months of consistent financial activity, including maintaining bank accounts, paying utility bills, and using credit cards responsibly. Start this process immediately upon obtaining residency to improve your future mortgage prospects.
Banks may offer mortgages to foreigners without local credit history if they provide additional guarantees, such as larger down payments or Chilean co-signers.
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Can I use my foreign income to qualify for a mortgage?
Chilean banks can accept foreign income for mortgage qualification, but you must provide local tax returns and documentation proving income stability.
Foreign income sources require additional scrutiny from lenders, who need to verify the sustainability and convertibility of your earnings. You must demonstrate that your foreign income will continue throughout the loan term and can be reliably transferred to Chile.
Banks typically require three years of foreign income history, translated financial statements, and proof of tax compliance in your home country. Currency exchange rate fluctuations may affect your loan amount calculations, and banks often apply conservative conversion rates.
Remote workers with foreign employers must provide employment contracts, client agreements, and evidence of consistent payment histories. Freelancers and consultants face additional challenges proving income stability.
Some banks prefer applicants with combined local and foreign income sources, as this demonstrates financial diversification and reduces currency risk.
What documents do I need to prepare as a foreigner?
Foreign mortgage applicants must prepare extensive documentation including residency permits, income verification, and personal identification documents.
Essential documents include your valid passport, Chilean residency permit (temporary or permanent), and RUT/RUN tax identification number. You'll also need proof of employment or business income in Chile, bank statements covering the past 12 months, and credit history reports.
Additional requirements include a certificate of good conduct from your home country, medical certificate from a Chilean healthcare provider, and proof of property insurance if purchasing existing property. All foreign documents must be translated into Spanish by certified translators and apostilled.
Income documentation should include employment contracts, salary certificates, tax returns, and bank statements showing regular deposits. Self-employed applicants need business registration documents, financial statements, and tax compliance certificates.
Banks may request additional documentation during the application process, so maintain organized records of all financial transactions and legal documents.
Are there specific banks or lenders in Chile that work with foreigners?
Several major Chilean banks actively work with foreign mortgage applicants, with BancoEstado, Banco Santander Chile, and Banco de Chile leading the market.
BancoEstado offers competitive rates for foreigners with permanent residency and established local income sources. Their foreign client division provides specialized services for non-resident borrowers and multilingual support.
Banco Santander Chile has extensive experience with international clients and offers flexible terms for qualified foreign applicants. They provide mortgage products specifically designed for expatriates and foreign investors.
Banco de Chile maintains strong relationships with foreign borrowers and offers comprehensive mortgage services including pre-approval processes. Their international banking division understands the unique challenges faced by non-resident buyers.
Success rates vary significantly between institutions, so foreign applicants commonly apply to multiple banks simultaneously to compare offers and improve approval chances.
What is the typical down payment required for non-residents?
Foreign buyers typically need a down payment of 30% of the property value, significantly higher than the 10-20% required for Chilean citizens.
The 30% down payment requirement reflects the higher risk profile assigned to foreign borrowers by Chilean banks. This translates to a maximum loan-to-value (LTV) ratio of 70% for most non-resident applicants.
Some premium banks may offer slightly lower down payment requirements (25%) for foreigners with exceptional credit profiles, substantial local assets, or long-term permanent residency. However, these cases represent a small minority of foreign mortgage approvals.
The down payment must be paid in Chilean pesos or through verified international transfers that comply with Chilean foreign exchange regulations. Banks require proof of funds showing the legal source of down payment money.
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What interest rates and loan terms are usually offered to foreigners?
Foreign borrowers can expect mortgage interest rates ranging from 4.4% to 14% depending on their risk profile, with loan terms up to 30 years.
The average mortgage interest rate in Chile is approximately 4.4-5% as of September 2025, but foreign applicants often receive rates at the higher end of this range. Banks adjust rates based on residency status, credit history, income stability, and down payment amount.
High-risk foreign applicants may face interest rates reaching 14%, particularly those without local credit history, limited residency periods, or complex income structures. Permanent residents with established local credit typically receive more competitive rates closer to the national average.
Loan terms extend up to 30 years, but banks impose age restrictions requiring borrowers to be no older than 65-75 years at loan maturity. Longer loan terms reduce monthly payments but increase total interest costs over the life of the mortgage.
Variable and fixed-rate options are available, with fixed rates providing payment predictability but typically carrying higher initial interest rates than variable products.
Are there legal restrictions on property ownership for foreigners in Chile?
Chile imposes minimal legal restrictions on foreign property ownership, with limitations only applying to border zones and certain coastal areas.
Article 19 of the Chilean Constitution guarantees equal property rights to foreigners, allowing non-residents to purchase most residential and commercial properties without special permissions. This constitutional protection makes Chile one of the most foreigner-friendly property markets in Latin America.
Border zone properties require special approval from Chilean authorities due to national security considerations. These restrictions apply to properties within 10 kilometers of international borders and certain coastal areas deemed strategically important.
National security zones along the coast and border regions may restrict foreign ownership or require government approval before purchase. These limitations affect a small percentage of available properties and primarily impact rural or remote locations.
Foreign buyers should verify property locations against restricted zone maps before making purchase commitments, though most urban residential properties face no ownership restrictions.
Do I need a Chilean guarantor or co-signer to get approved?
Most Chilean banks require foreign mortgage applicants to provide a Chilean guarantor who is not their spouse.
The guarantor must be a Chilean citizen or permanent resident with good credit standing and sufficient income to cover the mortgage payments if the primary borrower defaults. This requirement significantly reduces the bank's risk exposure when lending to non-residents.
Guarantors accept full legal responsibility for the mortgage debt and can face collection actions if payments become delinquent. Banks evaluate guarantors using the same credit and income criteria applied to primary borrowers.
Finding a suitable guarantor represents one of the biggest challenges for foreign mortgage applicants, as most people are reluctant to accept such significant financial liability. Professional guarantor services exist but charge substantial fees for their services.
Some banks may waive guarantor requirements for foreign applicants with exceptional financial profiles, including large down payments (40-50%), substantial local assets, or premium banking relationships.
What taxes and fees should I expect when buying property with a mortgage in Chile?
Property purchase transaction costs in Chile typically range from 3-5% of the property value, including notary fees, legal fees, registration costs, and real estate agent commissions.
Specific fees include notary fees (approximately 0.1% of property value), legal fees (around 1%), and real estate agent commissions (1-2% of purchase price). Property registration fees vary by municipality but generally represent a small fraction of total costs.
Value-added tax (VAT) applies to new property purchases, adding 19% to the base price. Used properties are typically exempt from VAT, making them more attractive to cost-conscious buyers.
Mortgage-related costs include property insurance (mandatory for financed purchases), appraisal fees, and loan origination charges. Banks require comprehensive property insurance covering fire, earthquake, and other natural disasters common in Chile.
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Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Securing a mortgage as a foreigner in Chile requires careful preparation, proper documentation, and realistic expectations about terms and requirements.
The Chilean mortgage market offers opportunities for qualified foreign buyers willing to meet residency requirements, provide substantial down payments, and navigate the additional complexities of international lending.
Sources
- Chile Mortgage Guide for Foreigners
- Chile Real Estate for Foreigners
- Chile Property Buying Guide
- Chile Mortgage Interest Rates
- IMF Chile Economic Analysis
- Chile Permanent Residency Guide
- Chile Residency Requirements
- Legal Insights for Foreign Property Buyers
- Chilean Banking Guide
- Chile Real Estate Laws