These are the requirements to mortgage a house in Chile

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Do you want to give your home a change? Do you need a warranty for a new home? Well, all this can be done through a mortgage. We invite you to know the Requirements to mortgage a house in Chile.

One way to support a second home mortgage financing application is by mortgaging the first home.

If you are difficult to obtain bank loans because you do not fully meet the requirements that they ask of you, but you have a property that you could offer as a mortgage guarantee, we explain the requirements and procedures so that you can specify your mortgage.

What is a mortgage?

A mortgage is to leave real estate as collateral in favor of the bank, which in turn grants a loan.

When it comes to a Real Estate (house, apartment or land) a person mortgages their property, which is delivered to the Bank or the financial institution as guarantee of the payment of their debts.

In the event that the debtor does not comply with the payment, the creditor institution has the right to auction the property and with that money pay said debt. In this way, the mortgage guarantees the payment of the credit. -Banco Santader.

Mortgage types

When applying for a mortgage loan to buy a house, it is important to know all the types of mortgage loans that exist in the market and the characteristics of each of them.

It is very important to choose a good mortgage loan, because the financing of your new home will depend on that.

The most common types of mortgage loans are:


  • Mortgage credit with letters of credit:

    Mortgage loans with letters of credit work as follows: “mortgage letters” are financed and are issued by the bank. These instruments can be traded by the bank on the stock market or acquired by it or a third party, in order to obtain the resources that finance the credit granted to the debtor.

    The price of the letters of credit varies according to market conditions, therefore, a positive or negative difference may be generated between the value of the letter and the price at which it is traded.

    Therefore, in the deed of the house, the contracting party that will take charge or benefit from the difference must be established. If it turns out to be the debtor, he will have to pay the negative difference that occurs.


  • Endorsable mutual mortgage:

    Another type of mortgage credit is the endorsable mutual. In the endorsable mutual, the bank finances the loan with its own resources. In these credits the applicant receives the approved amount and the difference that we have seen in the credits with mortgage bills is not generated.

    These can be transferred by the bank through an endorsement, which will be recorded in the corresponding public deed. But the administration of the credit is located in the bank, therefore, the applicant for the loan should contact the bank for any questions or problems.


  • Non-endorsable mortgage mutual:

    It’s a mortgage credit Similar to the previous one, but in this case, although the bank also finances the loan with its own resources, this type of credit cannot be transferred by endorsement.

    We must also know that there are subsidy programs that can help us buy, build or lease a property. These subsidies can help us pay off our mortgage credit.

Requirements to mortgage a house

To mortgage a house with a bank, it is basically required that the house can support the amount of money that is being requested to buy it.

For example, if your house is commercially appraised at 2,000 Development Units, you cannot request more than 2,000 Development Units from the bank, since that is the value that the house itself supports as collateral.

Basic requirements

The requirements to mortgage your house when you have debt are:

  1. Credit amount paid for the property: This is to credit the amount of the debt that you already have paid, or if you already have it fully paid.
  2. Certificates: Prove that all the legal documentation of the property is in order, that is, the certificates of ownership, prohibitions, expropriation and that the payment of contributions and others, which must be up to date.
  3. Appraisal: In addition, the bank makes a commercial appraisal to evaluate the amount of credit that it will grant to the applicant, leaving the property as a collateral that supports the debt.
  4. Writing of the property.
  5. Credit payments: Of services, contributions and others.

When you are going to mortgage a house that has no debts, you get an important bank loan that allows you to solve debts that are impossible to pay in any other way, and the house is pledged at the bank where the loan was requested.

Client study

All banks do a preliminary study of their clients before granting them a mortgage loan, and among the main variables they analyze are:

  1. Income.
  2. A statement of situation that reflects the expenses.
  3. The loans they have in progress and their level of debt.
  4. The assets they own.

Banks typically finance between 80% to 90% of the total value of real estate. So you have to look very closely at the value of the real estate to buy. So that the dividend to be paid monthly, considering the interest rate, insurance and other expenses, does not exceed 25% of net income. Considering this like this, it is very likely that the bank will approve the mortgage loan.

How to mortgage a house in Chile?

To buy a house, most of us will go to one of the mortgage loans offered by the national bank. These credits normally vary between 20 and 30 years. But interest rates can vary quite a bit between banks, so it is important to quote.

When you get the mortgage, you house will remain as collateral of the loan obtained.

Today, financial institutions often handle deeds with great agility. These make the creditor bank appear, raising the mortgages and prohibitions that they have with the mortgaged house to sell, and thus, the transfer of the domain to the buyer is carried out.

In addition, there is the possibility of renewing the same loan, but for it to be convenient for you, the bank rate must have a reasonable value and according to market values. In other words, you transfer your mortgaged debt to the new buyer under the same conditions that apply to him.

Always request the pertinent information from your advisor. Remember that regardless of the reason why you want to sell your house, it is always recommended that you receive correct advice, since the price of the property does not influence the market value, no matter how much you are paying a Mortgage credit.

Where to go to ask for a mortgage?

Among the requirements to mortgage a house, you are told that you have to go to a financial institution that can lend you the money you need. Which in this case are the banks. But this does not exclude individuals.

Mortgage guarantees

When you are reviewing the Requirements to mortgage a house, keep these guarantees in mind:

There are two types of mortgage guarantees, one is the specific guarantee and the other is the general guarantee.

With specific guaranteesYou can sell your property even if you have the mortgage loan still pending payment, and this is not a problem because you transfer the mortgage debt to the new owner and the property registration is transferred by making a mortgage increase in their favor.

General warranties are the most complicated, since as a debtor you deliver the property or mortgaged real estate as a guarantee of payment of any other debt that you may have with the bank, that is, credit cards, lines of credit or other loans that you can take with that bank. In these cases, it is more difficult to sell your property since you most likely need the authorization of the bank and also, they will require you to pay all other debts before making the sale.

How to cancel the mortgage?

For cancel the mortgage in advance you must be up to date with the payment of dividends. If there is delinquency, dividends must be paid pending plus associated expenses.

Having regularized the above, a formal request for advance payment must be submitted to the credit issuing institution. The creditor bank must issue a debt settlement that contains information regarding the exact balance to be paid by the client, the date agreed for the last payment.

If the payment is partial or total, the interest since the last dividend paid and the additional interest corresponding to the prepayment costs, among other relevant information.

For this, the bank has a maximum period of three business days from the date the request was submitted.

Let us remember that each institution has the obligation to have clear information so that clients can evaluate the alternatives for the advance payment of their credits, whether by means of checks, cash, bank view voucher or charge to the checking account.

However, the operation is not free of certain rules and surcharges.

Does it cost to cancel my mortgage credit?

There are commissions regulated by law that are charged for the operation. In the case of mortgage loans that exceed UF 5,000, the prepayment of credit It will be freely agreed between the creditor and the client, as well as the assigned commissions.

In the event that the loan is equal to or less than UF 5,000, the client can pay in advance without the need for the bank’s consent.

As long as – together with the payment of the capital that is anticipated and the interests calculated until the date of payment – a commission that is stipulated between both parties is also paid.

However, if there is no agreement, the commission may not exceed the value of one and a half months of interest calculated on the capital that is prepaid.

If the advance payment is less than 25% of the balance of the obligation, the law stipulates that it always requires the approval of the creditor, so the cancellation is subject to the approval of the bank.

After fully canceling the debt of a mortgage loan or a housing subsidy, it is requested, either from the bank or the SERVIU, the subscription of a public deed of cancellation and increase, to then present it to the Santiago Real Estate Curator (CBRS).

I want to sell my mortgaged house

Do you want to sell your property, but you are still paying the mortgage? No problem, mortgage debt is not an impediment for you to sell your house or apartment at a good price. Know the details.

One of the reasons why mortgage debt is not an impediment to selling a property is that it does not influence the sale price, nor the payment terms or the time of the operation.

To ensure the payment of the credit, the value of the new sale must be greater than the amount of the financial debt.

And in the event that the sector’s capital gain has increased, it may be offered at a considerably higher value than the total amount of the loan.

Let the buyer assume the debt

Another alternative in this kind of operation is for the buyer to assume the mortgage debt. This occurs mainly when the credit conditions are convenient for the user, specifically if the interest rate is of reasonable value. Thus, the debt is transferred to the buyer under the same conditions that were in force for the seller, after review and acceptance by the bank.

If the value of the home is greater than the debt, it is recommended that the buyer deliver the difference to the seller after registering the property in his name in the Real Estate Registrar, and it is proven that it is free of mortgages, encumbrances and prohibitions legal.

Get advice from experts

Finally, to avoid any inconvenience, it is important that those involved seek advice from experts in the housing market such as property brokers or professionals from the legal and financial field.

As you can see, the requirements to mortgage a house take time but it is not impossible. In fact, it is a great help for many Chileans who want to grow.

Remember, always read your mortgage contracts well. Do not take careless! If you have any questions, do not hesitate to comment.

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