Regulatory Alerts2005-12-19
Added · Updated
Directions for the Extension of Housing Loans by Financial Institutions Under the Preferential Housing Loan Program
These Directions establish the Preferential Loan Program, setting a total fund size of NT$1,680 billion with a processing period from August 14, 2000, to September 30, 2006. Lending financial institutions must offer loans at a rate pegged to Chunghwa Post Co., Ltd.’s two-year time deposit rate plus 1 percent, with government subsidies ranging from 0.125% to 0.85% per annum depending on the appropriation batch. Eligible borrowers are Republic of China nationals aged 20 or older, subject to loan ceilings of NT$2.5 million in Taipei City and NT$2 million elsewhere, with a maximum maturity of 20 years including a three-year grace period. Financial institutions bear all credit risks and must include specific conditions in loan agreements, prohibiting bulk loans to construction enterprises or real estate brokerages under penalty of reimbursing government subsidies.
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