Uptake for new first-time home buyer plan slow
By Crystal Hsu / Staff Reporter
Taiwan’s new youth housing loan program attracted fewer applicants in its first two months than its predecessor, with average monthly applications falling 17 percent, although the average loan amount rose 8 percent, Evertrust Rehouse Co (永慶房屋) said yesterday.
The new program, launched in August, received an average of 4,119 applications per month in its first two months, down from 4,964 under the previous program, which ran from August 2023 to July this year, the real-estate broker said, citing Ministry of Finance data.
The decline could reflect tighter eligibility requirements under the new program, as the government seeks to direct public resources toward first-time homebuyers who need assistance and intend to live in the properties they purchase, Evertrust said.
Commercial and residential buildings in Taipei are pictured from the air in an undated photograph.
Photo: Claire Cheng, Taipei Times
Under the previous program, banks disbursed loans to 177,000 households over three years, averaging 4,917 households per month. The amount disbursed reached NT$1.38 trillion (US$42.05 billion), an average of NT$38.5 billion per month, with an average loan amount of NT$7.82 million.
The new program recorded a higher average amount of NT$8.43 million per household, up 8 percent from the previous program, despite fewer applications.
The increase could be attributed to higher loan ceilings available to eligible homebuyers and households with children, Evertrust deputy research head Chen Chin-ping (陳金萍) said.
However, with only two months of data available, it is too early to determine whether the drop in applications signals weaker demand or a shift in people’s home-buying plans, Chen said.
The new program adds eligibility requirements covering applicants’ income and age, as well as property prices. The changes are intended to better target subsidies at first-time buyers and ensure that purchased homes are used for owner-occupation.
Another possible factor is that many first-time buyers who qualified for preferential financing under the previous program have already used the program, leaving a smaller pool of potential applicants, Chen said.
The preferential loan program provides eligible buyers with an additional financing option, but actual applications and disbursements depend on borrowers’ financial circumstances, banks’ credit assessments and loan-processing times, she said.
Chen advised young homebuyers to look beyond preferential interest rates, loan terms and eligibility requirements when choosing a mortgage. They should assess income stability, monthly repayments, living expenses and potential interest rate changes to avoid taking on excessive long-term financial commitments.
Buyers should budget for renovations, management fees, taxes and other homeownership expenses, while maintaining sufficient emergency savings to protect their financial stability, she said.
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