IFC Backs $100 Million Housing Finance Push for Women in Chile

Chile's housing deficit is currently estimated at 927,000 homes, representing roughly 14 percent of households nationwide, leaving a significant number of families facing difficulties in finding adequate housing.

More people in Chile could gain access to mortgage financing through a new US$100 million loan from the International Finance Corporation (IFC) to Banco Consorcio, with women homebuyers forming an important part of the initiative. The financing comes as Chile faces a substantial housing shortage and households are finding it harder to secure mortgages because of higher borrowing costs and tighter access to the long-term funding needed to finance home purchases.

The partnership also connects housing finance with wider economic activity, since greater mortgage availability can support homebuyers while generating demand across construction and related industries. IFC, a member of the World Bank Group, sees the investment as part of its work to use private-sector financing to address development needs, create employment and encourage more inclusive economic growth in Chile.

Chile Faces a Housing Deficit of 927,000 Homes

Chile's housing deficit is currently estimated at 927,000 homes, representing roughly 14 percent of households nationwide, leaving a significant number of families facing difficulties in finding adequate housing. The challenge has become more pressing as higher mortgage rates and reduced availability of long-term financing have made purchasing a home less accessible for many households.

Expanding the flow of mortgage credit can help address one part of this problem by giving eligible buyers more financing options and supporting a housing market where access to capital has become increasingly important. The IFC loan will strengthen Banco Consorcio's capacity to provide mortgage financing, helping the bank reach more borrowers looking to purchase homes.

Women Homebuyers at the Center of the Financing

A major feature of the transaction is its focus on improving women's access to mortgages, linking the US$100 million financing package with broader efforts to strengthen financial inclusion. Women can encounter barriers when trying to access housing finance, making dedicated lending capacity an important tool for increasing opportunities to own property and build household assets.

Gonzalo Ferrer, CEO of Banco Consorcio, said mortgage lending is a key business line for the bank and that the IFC financing will allow it to strengthen its mortgage offering while supporting more women seeking to purchase homes. The initiative gives Banco Consorcio additional resources to expand lending at a time when financing conditions have made mortgages harder to obtain.

Housing Finance Could Support Construction Jobs

The impact of stronger mortgage lending could extend into Chile's construction industry, which accounts for approximately 7 percent of national GDP and around 10 percent of employment. Increased access to home financing can support demand for residential properties, giving developers and construction businesses stronger conditions for investment, project activity and employment.

Jean-Marc Arbogast, World Bank Group Country Manager for Chile, said the country's housing challenge has a direct effect on economic and social development. He noted that the operation is designed to create more opportunities for people to access mortgage financing while contributing to a housing market that is more inclusive and active.

IFC and Banco Consorcio Deepen Their Partnership

The new loan builds on more than a decade of collaboration between IFC and Banco Consorcio, expanding their relationship into an area closely connected with household financial security and Chile's broader development needs. The transaction also shows how international development financing and private banking can work together to increase the availability of longer-term capital where commercial funding conditions have become more difficult.

For Chilean households, the practical value of the partnership will depend on how effectively the additional financing reaches people seeking mortgages, particularly women who are ready to purchase homes but face financing constraints. For the wider economy, stronger housing credit could provide another source of support for construction, employment and private investment while helping the country respond to a housing shortage affecting hundreds of thousands of households.