What does Decree 583 of 2025 mean for those who want to buy a home?

Buying a home continues to be one of the main goals for many families in Colombia. In response to this need, the National Government has introduced new measures that seek to facilitate home purchases. Decree 583 of May 28, 2025, marks a turning point for those who wish to purchase new or used homes, especially for moderate-income families who previously faced barriers in the financial system. Today, thanks to this update, more Colombians can access higher credit amounts, with greater flexibility and better alternatives. Here we explain what Decree 583 of 2025 means for those who want to buy a home.

What do the new limits in Decree 583 of 2025 mean?

Under the new regulatory framework, Colombian families can allocate up to 40% of their monthly income to the first installment of a mortgage. This measure applies if the applicants are related (up to second degree of consanguinity, first degree of affinity, or civil union), or if they are spouses or permanent partners. This allows them to combine their incomes and access a higher amount of financing, which represents a great opportunity for those looking for an apartment for sale in Medellín and want to finance it more easily.

As for the value of the loan, it can cover up to 70% of the property's value, based on its market price or an appraisal no more than six months old. For social housing (VIS), the percentage that can be financed can reach up to 80%, further expanding the purchase possibilities for many households.

How does this impact families?

Previously, a family that wanted to buy a $150 million home needed a $120 million loan. To get approved, they had to prove a monthly income of at least $4,300,000. Now, with the new decree, the same family can access a $120 million loan with an income of only $3,200,000 per month. In other words, it is easier to access credit, even with lower incomes. If you earn the same as before ($4,300,000), you could now receive a loan of up to $160 million, which would allow you to buy a home worth up to $200 million.

What type of housing does this decree apply to?

This decree mainly applies to the purchase of non-VIS housing, i.e., those that are not covered by government subsidies. It also benefits the purchase of used housing and off-plan housing, with medium-term deliveries, ideal for those who want to plan their payments with greater peace of mind.

If you have been thinking about buying a home for some time, this decree may be the push you needed. With the new conditions, accessing credit is easier: banks allow a higher percentage of income to be allocated to the first installment, which expands your financing possibilities, even if your income is lower than before. In addition, if you are considering a pre-owned home, now is an excellent time to make the decision. At Alberto Álvarez Inmobiliaria, we have a wide range of properties, personalized advice, and the necessary experience to accompany you throughout the process. Valeria Ospina – Marketing Analyst