Since December 2010, the government has offered preferential loans to help non-homeowning households purchase new homes. In August 2023, responding to recent trends of rising global inflation, housing prices and interest rates, the government rolled out a new housing loan program targeted at young homebuyers (open for applications until July 31, 2026) which further alleviates the difficulties of loan repayment. In addition, enhanced oversight measures have been put in place to prevent disruptions to the orderly functioning of the real estate market by misuse of the loans—such as by speculative investors, dummy buyers, or loan borrowers who sublease the property. These measures include administering audits of loan applicants, strengthening checks and supervision of loan debtors, requiring new loan borrowers to sign an affidavit of owner-occupancy, and restricting loans to one per person.
Key points of the new program
■ Requirements to apply: Adults aged 18 or above who own no residential property under their own name, their spouse's name, or their minor children's names are eligible to apply for a loan to purchase an existing home property (not including off-plan properties). Starting from June 27, 2024, those who have had the loan approved by a bank after August 1, 2023 cannot apply for another loan.
■ Better terms and conditions: Loan amounts have been increased to a maximum of NT$10 million (US$308,000), repayment periods extended to a maximum of 40 years, and grace periods extended to a maximum of five years. State-owned banks have lowered the loan interest rates by 0.125 percentage points, and the government subsidizes an additional 0.375 percentage points, resulting in a total reduction of 0.5 percentage points in loan interest rates.