Regulatory Alerts2021-09-23
Added · Updated
Regulations Governing the Extension of Mortgage Loans by Financial Institutions
Amended on September 23, 2021, and effective September 24, 2021, these regulations impose restrictions on mortgage loans extended by financial institutions, including domestic banks, credit cooperatives, and insurance companies. The rules define high-value housing loans with specific value thresholds for Taipei City (NT$70 million), New Taipei City (NT$60 million), and other areas (NT$40 million), and set maximum loan-to-value ratios of 55%, 50%, or 40% for natural persons based on their existing loan count, while capping corporate housing loans at 40%. Additional constraints limit land loans to 60% of acquisition cost or appraised value, unsold housing unit loans to 50% of appraised value, and idle industrial land mortgage loans to 50% of appraised value, with specific exceptions for reconstruction projects and loans approved prior to the effective date.
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