Regulatory Alerts2023-06-15
Added · Updated
Regulations Governing the Extension of Mortgage Loans by Financial Institutions
The Regulations establish restrictions on mortgage loans extended by financial institutions, defining high-value housing loans with value thresholds of NT$70 million in Taipei City, NT$60 million in New Taipei City, and NT$40 million elsewhere. Housing loans to corporations are capped at 40 percent of the appraised value or purchase price, while home loans for natural persons with existing loans in specific areas are limited to 70 percent, and those with two or more loans are subject to the 40 percent cap. Land loans are restricted to 50 percent of the acquisition cost or appraised value with a 10 percent disbursement hold until construction begins, and unsold housing unit and idle industrial land loans are capped at 40 percent. The Regulations take effect on June 16, 2023, applying the prevailing provisions to loan applications processed before that date.
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