The banned quintet are Premier League side West Brom's Gonzalo Jara and English Championship outfit Blues winger Jean Beausejour, Serie A midfielders Arturo Vidal and Carlos Carmona, and Brazil-based Jorge Valdivia.
They will miss Chile's qualifiers against Uruguay in Montevideo on Friday and Paraguay in Santiago next Tuesday.
The five were hauled over the coals by Borghi after attending the baptism of Valdivia's son.
After the party they arrived for training 45 minutes late, reportedly inebriated.
Borghi told a press conference: "They arrived in a state that wasn't appropriate for the national team of Chile nor for a professional player.
"From that moment I decided to suspend them from the squad."
The five have been replaced by players from the domestic league.
Borghi added that he had acted "not because they had broken a written rule but because they broke their word, which is more serious".
The bans come at a tricky time for Chile who are lying in sixth place after one win and one defeat in qualifying for Brazil 2014.