Chile has introduced a new tier of the DS1 housing subsidy to help middle-income families purchase their first homes [1].
The initiative aims to reduce the housing access gap for a demographic that often earns too much for basic social housing but cannot afford market-rate mortgages. By expanding the coverage of the DS1 program, the government seeks to facilitate homeownership for a broader segment of the population [1].
Iván Produje, the Minister of Housing and Urbanism, said the new tier of the DS1 subsidy is designed for middle-income families looking for their first home [1]. The program targets those who have been previously excluded from similar benefits due to income thresholds.
To qualify for the new tier, the home must have a maximum value of 4,000 UF [2]. Additionally, applicants must not have been beneficiaries of any other housing subsidy in the past [2].
This expansion was first announced in May 2024 [1]. The Ministry of Housing and Urbanism (MINVU) manages the application process, focusing on expanding the reach of state aid to ensure that the middle class can access stable housing options.
A MINVU spokesperson said that the 4,000 UF limit and the requirement that the family has not previously received a housing subsidy are the primary criteria for the new tier [2].
“The new tier of the DS1 subsidy is designed for middle-income families looking for their first home.”
The introduction of this specific subsidy tier acknowledges the 'missing middle' in Chile's housing market. By raising the ceiling for eligible home values to 4,000 UF, the government is attempting to align state aid with actual market prices for modest first homes, potentially stimulating the real estate sector while addressing social stability for middle-income earners.
