Regulatory Alerts2020-12-07
Added · Updated
Regulations Governing the Extension of Mortgage Loans by Financial Institutions
The Regulations impose specific lending restrictions on financial institutions extending mortgage loans, defining high-priced housing loans by value thresholds in Taipei City (NT$70 million), New Taipei City (NT$60 million), and other domestic areas (NT$40 million). Corporations applying for housing loans face a maximum loan-to-value ratio of 60 percent, or 50 percent if holding more than one such loan, with no grace periods allowed. Natural persons with more than two housing loans are subject to the same restrictions as corporations, while land loans are capped at 65 percent of acquisition cost or appraised value, and unsold housing unit loans are limited to 50 percent of the appraised value. Loans approved prior to December 7, 2020, remain governed by the terms prevailing at the time of approval.
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