Chilean banks that do HELOCs?

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otravers
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Chilean banks that do HELOCs?

Post by otravers » Mon Sep 03, 2012 7:53 pm

We've sat out of buying property in Santiago so far (I'm saying this in reference to past forum posts) but we have kept investigating neighborhoods and still plan to do so. I think it should be easier for us to secure a line of credit on our own home, which is easily worth 200M+ CLP in its present unfinished remodeling state and is fully owned free and clear. I assume we'd get a lower interest rate as well vs. getting financing on an investment property (i.e. not owner occupied), especially with little to no cash down (i.e. our money is in our house).

We haven't really investigated this with Chilean banks yet, so does anyone have experience with local HELOC-type financing, and which banks might be more open to it? We already have a couple local branches we can talk to (we have a cuenta corriente in one, and a couple acquaintances working in other banks) but since we're talking about buying property in RM, I thought I'd ask here as well.

We don't plan going crazy with huge leverage or unrealistic plans for crazy flips, we just want to put our money to work and have a least one small property paid for by the time our kids hit college age, since decent Unis are in Santiago more than Vina. Ideally the "paid for" part will be done by renters. We're still working on the overall soundness of our plans, and I saw some interesting discussions on boards such as biggerpockets.com from homeowners who want to put the money in their house to work, but of course this being Chile, idiosyncrasies matter.

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