NT$200 billion housing loan program for youths launched

The China Post news staff

TAIPEI, Taiwan — The Ministry of Finance yesterday announced a NT$200 billion housing-loan program to help local youths buy homes, effective Dec. 1.

Vice Finance Minister Tseng Ming-chung told a press conference that under the program, first-time home buyers aged between 20 and 45 will be eligible for low-interest housing loans as long as their spouses also have no self-residence houses.

The maximum amount of each loan is set at NT$5 million, and the interest rate charged during the first two years is set at 1.5 percent per annum. Starting from the third year, the interest rate will be set 0.645 of a percentage point higher than the floating interest rate for two-year savings deposits at the postal banking system, which will amount 1.8 percent per annum based on the current interest rate for the deposits, according to Tseng. He continued that the maximum maturity term is set at 30 years, with the principal and interest to be repaid together on a monthly installment basis.

There will be eight state-linked banks consigned to handle the lending program, including Bank of Taiwan, Land Bank of Taiwan, Taiwan Cooperative Bank, First Bank, Hua Nan Commercial Bank, Changhua Commercial Bank, Mega Bank, and Taiwan business Bank.