Taiwan's state-owned banks will raise the limit on preferential mortgage loans for young homeowners from NT$5 million (US$152,000) to NT$8 million (NT$244,000) starting January 1, the Ministry of Finance (MOF) reported to Premier Mao Chi-kuo at a Cabinet meeting today.
The move is intended to increase support for families looking to purchase their first home. The higher loan amount is also available to certain homebuyers who qualify for mortgage and interest subsidies under a separate Ministry of the Interior (MOI) program. Premier Mao asked the MOF and the MOI to increase publicity of these benefits to those in need.
The integrated housing and land tax system, which will also come into force January 1, is expected to help curb speculation on Taiwan's real estate, Mao pointed out. The government's housing policy is to enable all citizens to purchase or rent suitable homes regardless of their needs or financial abilities.
The government already provides a broad range of housing assistance to young people and the economically disadvantaged, Mao continued. The MOI offers subsidies on rent and home mortgages under its Integrated Housing-Subsidization Program, and it also promotes houses for rental purposes only. The MOF, meanwhile, has been guiding state-owned banks in providing preferential mortgage loans to young people since December 2010, with nearly NT$700 billion (US$21.3 billion) loaned so far. These measures will ease the financial burden on homebuyers and promote housing justice, Mao said.