Social housing in Latin America faces multiple barriers, including the difficulty of accessing adequate financing for low- and middle-income households. In response, financial institutions are adopting innovative structures—such as social bonds and securitization programs—to attract both domestic and international investment and support the development of accessible mortgage products. These strategies make it possible to offer loans with longer terms and competitive rates, tailored to sectors with limited repayment capacity. A notable example is the social bond issued by Home Mortgage Bank and RBC Caribbean in Trinidad and Tobago, aimed at financing subsidized mortgages and extending the duration of available housing finance in the country.
Financial inclusion also plays a central role in this solution ecosystem. Institutions like Fedecredito in El Salvador have promoted financing schemes that leverage remittance flows to back thematic bond issuances, including gender-focused social bonds. This has allowed resources to be directed toward vulnerable women and women-led micro and small businesses (WMSMEs), helping to reduce access gaps and promote equity. Public-private partnerships further strengthen this dynamic by combining public and private resources to develop more effective and sustainable mechanisms. Thus, Latin America moves toward a more inclusive and resilient housing market, where financial innovation becomes a key tool for social development.
Read the blog here: La vivienda social en América Latina, un problema complejo que requiere soluciones innovadoras
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