The Housing Finance System

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A. Primary Housing Finance Market

A.1 Industry Structure and Performance
VariableEnd of 2017End of 2016End of 2015SourcesVar ID
Number of firms originating and funding mortgage loans131315
SBIF, idCategoria=564, tipocont=703, preg=2705
A.1.1
Types of originating lenders/market share:A.1.2
Universal/ commercial banks100% of total100% of total100% of total
SBIF, idCategoria=564, tipocont=703, preg=2705
A.1.2.1
Identify the 3 largest loan originating lendersSantander, Banco Estado, Banco de ChileSantander, Banco Estado, Banco de ChileSantander, Banco Estado, Banco de Chile
SBIF, idCategoria=564, tipocont=703, preg=2705
A.1.3
Are there (quasi) public mortgage lenders:YesYesYesA.1.4
Universal/ commercial banksYesYesYesA.1.4.1
Other depository institutions (savings and loans/mutual savings and credit institutions)NoNoNo
HOFINET
A.1.4.2
Non-depository financial institutions specialized in housing financeNoNoNo
HOFINET
A.1.4.3
General non-depository financial institutionsNoNoNo
HOFINET
A.1.4.4
Others (e.g. insurance co, pension funds, labor tax funds)NoNoNo
HOFINET
A.1.4.5
Level of Non-Performing Mortgage Loans (90 days or more past due):A.1.6
as a % of # of loans  .9%
Central Bank of Chile
A.1.6.1
as a % of outstanding loan amountNot availableNot available2.72%
 
A.1.6.2
Average 1997-2007 A.1.7
A.2 Size of Mortgage Finance Sector
VariableEnd of 2017End of 2016End of 2015SourcesVar ID
Total amount of home mortgage loans outstanding at the end of year in millions of USD:71,262.31 USD (millions)59,672.71 USD (millions)51,372.75 USD (millions)A.2.1
Total amount of home mortgage loans outstanding at the end of year as % of GDP (current)25.72%23.87%21.05%A.2.1.1
and as % of all credits outstanding28.64%27.23%26.26%A.2.1.2
Total # of home mortgage loans outstanding at the end of year1,514.16 thousand1,439.41 thousand1,422.84 thousand
SBIF
A.2.2
Total # of home mortgage originations made in calender year  84.82 thousand
Central Bank of Chile
A.2.4
A.3 Housing Finance Products
VariableEnd of 2017End of 2016End of 2015SourcesVar ID
Mortgage products as % of all mortgages (approx.) in local currency:A.3.1
Most prevalent type of foreign currency mortgage used:A.3.3
Most frequent interest rates on fully amortizing:A.3.4
Typical lender fees associated with mortgage origination: A.3.6
Fixed in amount 200 USD 200 USD 200 USD A.3.6.1
Typical third party fees associated with mortgage origination:A.3.7
Appraisal fees100 USD 100 USD 100 USD A.3.7.1
Title related fees400 USD 400 USD 400 USD A.3.7.2
Loan-to-Value (LTV) on first mortgage: A.3.8
Maximum LTV100100100A.3.8.1
Typical LTV at origination808080A.3.8.2
Maximum term over which pmt is calculated? 30 years30 years30 years
Santander, Banco Estado, Banco de Chile
A.3.9
Mortgage pmt-to-income ratio A.3.10
Typical pmt-to-income ratio (Individual income)  20%A.3.10.4
A.4 Lending and Servicing Process
VariableEnd of 2017End of 2016End of 2015SourcesVar ID
Does the mortgage industry use standard principles/guidelines for underwriting?YesYesYes
Santander, Banco Estado, Banco de Chile
A.4.1
Which institutions define underwriting rules? A.4.2
Central Bank/Ministry of FinanceYesYesYesA.4.2.1
OtherYesYesYesA.4.2.4
A.5 Credit Risk Assessment
VariableEnd of 2017End of 2016End of 2015SourcesVar ID
Do credit bureaus exist? YesYesYesA.5.2
Are there legal/regulatory constraints to gaining access to credit information?NoNoNoA.5.2.1
Is mortgage default insurance available?YesYesYesA.5.3
What is the typical MI product?Banco Estado, Chile's only public bank and a substantial mortgage lender, offers mortgage default insurance that covers the unpaid balance of the debt and up to 3 delinquent installments. The premium on this plan is roughly 0.03% of the outstanding mortgage balance, paid monthly.Banco Estado, Chile's only public bank and a substantial mortgage lender, offers mortgage default insurance that covers the unpaid balance of the debt and up to 3 delinquent installments. The premium on this plan is roughly 0.03% of the outstanding mortgage balance, paid monthly.Banco Estado, Chile's only public bank and a substantial mortgage lender, offers mortgage default insurance that covers the unpaid balance of the debt and up to 3 delinquent installments. The premium on this plan is roughly 0.03% of the outstanding mortgage balance, paid monthly.A.5.3.2
Are credit guarantee systems used? YesYesYes
OECD
A.5.4
Is there public sponsored MI / guarantee?YesYesYesA.5.5
B. Funding Sources for Mortgages and the Secondary Mortgage Market
VariableEnd of 2017End of 2016End of 2015SourcesVar ID
What are the main funding sources for mortgages?B.1
Retail funding (deposits/other)primaryprimaryprimary
SBIF, idCategoria=564, tipocont=703, preg=2705
B.1.1
Funding through mortgage bonds tertiarytertiarytertiary
SBIF, idCategoria=564, tipocont=703, preg=2705
B.1.3
Funding through securitization of mortgages  Tertiary
IADB
B.1.4
Other secondarysecondarysecondary
SBIF, idCategoria=564, tipocont=703, preg=2705
B.1.5
Who are the investors in RMBS?  Insurance Companies
IMF 2013 Selected Issues Report
B.3
C. Housing Microfinance
VariableEnd of 2017End of 2016End of 2015SourcesVar ID
Types of lenders operating in the housing micro-finance (HMF) sector:C.2
Level of NPLs (>90 days past due) in HMFC.4
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Notes: 72% of families with access to credit also received a subsidy.
Notes: Calculated as reciprocal of private rental units, as there is a very low percentage of other types of tenure in Chile.
Notes: Created by government decree in 1953, Banco Estado is one of the country's leading mortgage lenders. It is the country's only public bank.
Notes: Created by government decree in 1953, Banco Estado is one of the country's leading mortgage lenders. It is the country's only public bank.
Notes: Created by government decree in 1953, Banco Estado is one of the country's leading mortgage lenders. It is the country's only public bank.  
Notes: Endorsable mortgage loans are the second largest chunk of mortgage credit--loans that are "endorsed" by other financial institutions like pension funds and life insurance companies.
Notes: Endorsable mortgage loans are the second largest chunk of mortgage credit--loans that are "endorsed" by other financial institutions like pension funds and life insurance companies.
Notes: Endorsable mortgage loans are the second largest chunk of mortgage credit--loans that are "endorsed" by other financial institutions like pension funds and life insurance companies.
Notes: Endorsable mortgage loans are the second largest chunk of mortgage credit--loans that are "endorsed" by other financial institutions like pension funds and life insurance companies.
Notes: Endorsable mortgage loans are the second largest chunk of mortgage credit--loans that are "endorsed" by other financial institutions like pension funds and life insurance companies.
Notes: Endorsable mortgage loans are the second largest chunk of mortgage credit--loans that are "endorsed" by other financial institutions like pension funds and life insurance companies.
Notes: Endorsable mortgage loans are the second largest chunk of mortgage credit--loans that are "endorsed" by other financial institutions like pension funds and life insurance companies. 
Notes: Endorsable mortgage loans are the second largest chunk of mortgage credit--loans that are "endorsed" by other financial institutions like pension funds and life insurance companies.  
Notes: Housing subsidies in Chile have typically been geared at people living in the most marginal conditions up to medium-income individuals.
Notes: Housing subsidies in Chile have typically been geared at people living in the most marginal conditions up to medium-income individuals.
Notes: Housing subsidies in Chile have typically been geared at people living in the most marginal conditions up to medium-income individuals.
Notes: Housing subsidies in Chile have typically been geared at people living in the most marginal conditions up to medium-income individuals.
Notes: Housing subsidies in Chile have typically been geared at people living in the most marginal conditions up to medium-income individuals.
Notes: Housing subsidies in Chile have typically been geared at people living in the most marginal conditions up to medium-income individuals.
Notes: Housing subsidies in Chile have typically been geared at people living in the most marginal conditions up to medium-income individuals.  
Notes: Housing subsidies in Chile have typically been geared at people living in the most marginal conditions up to medium-income individuals.   
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by Kind of Debtor - Housing
Notes: Loans by kind of debtor, balances - Mortgage
Notes: Loans by kind of debtor, balances - Mortgage 
Notes: Of the 13 institutions with large enough mortgage portfolios to constitute coverage by the SBIF, all 13 are commercial banks. There is a very small amount of lending done by insurance companies and pension funds but that amount is not covered by the SBIF.  
Notes: Of the 13 institutions with large enough mortgage portfolios to constitute coverage by the SBIF, all 13 are commercial banks. There is a very small amount of lending done by insurance companies and pension funds but that amount is not covered by the SBIF.   
Notes: Of the 15 institutions with large enough mortgage portfolios to constitute coverage by the SBIF, all 15 are commercial banks. There is a very small amount of lending done by insurance companies and pension funds but that amount is not covered by the SBIF.
Notes: Of the 15 institutions with large enough mortgage portfolios to constitute coverage by the SBIF, all 15 are commercial banks. There is a very small amount of lending done by insurance companies and pension funds but that amount is not covered by the SBIF.
Notes: Of the 15 institutions with large enough mortgage portfolios to constitute coverage by the SBIF, all 15 are commercial banks. There is a very small amount of lending done by insurance companies and pension funds but that amount is not covered by the SBIF.
Notes: Of the 15 institutions with large enough mortgage portfolios to constitute coverage by the SBIF, all 15 are commercial banks. There is a very small amount of lending done by insurance companies and pension funds but that amount is not covered by the SBIF.
Notes: Of the 15 institutions with large enough mortgage portfolios to constitute coverage by the SBIF, all 15 are commercial banks. There is a very small amount of lending done by insurance companies and pension funds but that amount is not covered by the SBIF.
Notes: Of the 16 institutions with large enough mortgage portfolios to constitute coverage by the SBIF, all 16 are commercial banks. There is a very small amount of lending done by insurance companies and pension funds but that amount is not covered by the SBIF.
Notes: Of the 16 institutions with large enough mortgage portfolios to constitute coverage by the SBIF, all 16 are commercial banks. There is a very small amount of lending done by insurance companies and pension funds but that amount is not covered by the SBIF.
Notes: Of the 17 institutions with large enough mortgage portfolios to constitute coverage by the SBIF, all 17 are commercial banks. There is a very small amount of lending done by insurance companies and pension funds but that amount is not covered by the SBIF.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.
Notes: The decision-power over existing bank prudential tools is divided between the SBIF and the Banco Central de Chile.  
Notes: The housing subsidy provided by the Ministry of Housing and Urbanism offers up to UF 1,800 to help with the down-payment on a mortgage.
Notes: The housing subsidy provided by the Ministry of Housing and Urbanism offers up to UF 1,800 to help with the down-payment on a mortgage.
Notes: The housing subsidy provided by the Ministry of Housing and Urbanism offers up to UF 1,800 to help with the down-payment on a mortgage.
Notes: The housing subsidy provided by the Ministry of Housing and Urbanism offers up to UF 1,800 to help with the down-payment on a mortgage.
Notes: The housing subsidy provided by the Ministry of Housing and Urbanism offers up to UF 1,800 to help with the down-payment on a mortgage.
Notes: The housing subsidy provided by the Ministry of Housing and Urbanism offers up to UF 1,800 to help with the down-payment on a mortgage.
Notes: The housing subsidy provided by the Ministry of Housing and Urbanism offers up to UF 1,800 to help with the down-payment on a mortgage. 
Notes: The housing subsidy provided by the Ministry of Housing and Urbanism offers up to UF 1,800 to help with the down-payment on a mortgage.  
Notes: The largest portion of mortgage loans by far is "non-endorsable" mortgages, which are just mortgage loans issued and held by the originating commercial bank lender.
Notes: The largest portion of mortgage loans by far is "non-endorsable" mortgages, which are just mortgage loans issued and held by the originating commercial bank lender.
Notes: The largest portion of mortgage loans by far is "non-endorsable" mortgages, which are just mortgage loans issued and held by the originating commercial bank lender.
Notes: The largest portion of mortgage loans by far is "non-endorsable" mortgages, which are just mortgage loans issued and held by the originating commercial bank lender.
Notes: The largest portion of mortgage loans by far is "non-endorsable" mortgages, which are just mortgage loans issued and held by the originating commercial bank lender.
Notes: The largest portion of mortgage loans by far is "non-endorsable" mortgages, which are just mortgage loans issued and held by the originating commercial bank lender.
Notes: The largest portion of mortgage loans by far is "non-endorsable" mortgages, which are just mortgage loans issued and held by the originating commercial bank lender. 
Notes: The largest portion of mortgage loans by far is "non-endorsable" mortgages, which are just mortgage loans issued and held by the originating commercial bank lender.  
Notes: The SBIF lists only 13 lending institutions with large enough mortgage credit outstanding in their database. 
Notes: The SBIF lists only 13 lending institutions with large enough mortgage credit outstanding in their database.  
Notes: The SBIF lists only 15 lending institutions with large enough mortgage credit outstanding in their database.
Notes: The SBIF lists only 15 lending institutions with large enough mortgage credit outstanding in their database.
Notes: The SBIF lists only 15 lending institutions with large enough mortgage credit outstanding in their database.
Notes: The SBIF lists only 15 lending institutions with large enough mortgage credit outstanding in their database.
Notes: The SBIF lists only 15 lending institutions with large enough mortgage credit outstanding in their database.
Notes: The SBIF lists only 16 lending institutions with large enough mortgage credit outstanding in their database.
Notes: The SBIF lists only 16 lending institutions with large enough mortgage credit outstanding in their database.
Notes: The SBIF lists only 17 lending institutions with large enough mortgage credit outstanding in their database.
Notes: The smallest portion of mortgage funding is from mortgage bonds--these are referred to as "letters of credit" by the SBIF. They are financial instruments sold to other entities for rights to the cash flows from the mortgage, where the issuer acts as the intermediary of the funds.
Notes: The smallest portion of mortgage funding is from mortgage bonds--these are referred to as "letters of credit" by the SBIF. They are financial instruments sold to other entities for rights to the cash flows from the mortgage, where the issuer acts as the intermediary of the funds.
Notes: The smallest portion of mortgage funding is from mortgage bonds--these are referred to as "letters of credit" by the SBIF. They are financial instruments sold to other entities for rights to the cash flows from the mortgage, where the issuer acts as the intermediary of the funds.
Notes: The smallest portion of mortgage funding is from mortgage bonds--these are referred to as "letters of credit" by the SBIF. They are financial instruments sold to other entities for rights to the cash flows from the mortgage, where the issuer acts as the intermediary of the funds.
Notes: The smallest portion of mortgage funding is from mortgage bonds--these are referred to as "letters of credit" by the SBIF. They are financial instruments sold to other entities for rights to the cash flows from the mortgage, where the issuer acts as the intermediary of the funds.
Notes: The smallest portion of mortgage funding is from mortgage bonds--these are referred to as "letters of credit" by the SBIF. They are financial instruments sold to other entities for rights to the cash flows from the mortgage, where the issuer acts as the intermediary of the funds.
Notes: The smallest portion of mortgage funding is from mortgage bonds--these are referred to as "letters of credit" by the SBIF. They are financial instruments sold to other entities for rights to the cash flows from the mortgage, where the issuer acts as the intermediary of the funds.  
Notes: The smallest portion of mortgage funding is from mortgage bonds--these are referred to as "letters of credit" by the SBIF. They are financial instruments sold to other entities for rights to the cash flows from the mortgage, where the issuer acts as the intermediary of the funds.   
Notes: The state's public mortgage lender requires mortgage default insurance be paid for along with their normal monthly mortgage payments.
Notes: The state's public mortgage lender requires mortgage default insurance be paid for along with their normal monthly mortgage payments.
Notes: The state's public mortgage lender requires mortgage default insurance be paid for along with their normal monthly mortgage payments.
Notes: The state's public mortgage lender requires mortgage default insurance be paid for along with their normal monthly mortgage payments.
Notes: The state's public mortgage lender requires mortgage default insurance be paid for along with their normal monthly mortgage payments.
Notes: The state's public mortgage lender requires mortgage default insurance be paid for along with their normal monthly mortgage payments.
Notes: The state's public mortgage lender requires mortgage default insurance be paid for along with their normal monthly mortgage payments. 
Notes: The state's public mortgage lender requires mortgage default insurance be paid for along with their normal monthly mortgage payments.  
Notes: Upfront vouchers