The Cabinet will complete studies on a possible reverse mortgage plan within a year and expects concrete results by the end of next year, Minister of the Interior Jiang Yi-huah (江宜樺) said yesterday.
“The government is still in the process of evaluating the reverse mortgage policy,” Jiang said at a seminar in Taipei yesterday. “As for whether the policy should be legislated or included in the social welfare program, we need to listen to public opinion.”
The minister said the matter was complex and factors such as property value and interest rate fluctuations must be taken into consideration.
Chang Chin-oh (張金鶚), land economics professor at National Chengchi University, said the program should not be viewed merely as a financial product, but as a policy that above all ensures the welfare of the nation’s elderly.
“If the policy is carried out successfully, it will ease the government’s financial burden and have a positive impact on the local real estate industry,” Chang said.
A reverse mortgage is a loan made available to older homeowners, in which the home equity is released in one lump sum or in monthly installments. The borrower’s obligation to repay the loan is deferred until he or she dies or moves out, or when a home is liquidated.
Because of the aging population and low birth rate, the minister said, more older people live alone.
“According to a survey by the ministry, the number of older couples living alone increased to 40 percent as of last year — 15 percentage points higher than in 1996,” Jiang said.
He said that although the main source of income for the elderly still comes from their children, the percentage of those who rely on the government’s subsidies in retirement has increased.
The mortgage program aims to help older homeowners enjoy retirement with their own property, Jiang said.
Chang said Taiwan was more suitable for the program than the US as housing prices are steadier.
“The program will also encourage young people to start planning a home purchase early for retirement,” he said.
SEMICONDUCTORS: The firm has already completed one fab, which is to begin mass producing 2-nanomater chips next year, while two others are under construction Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, plans to begin construction of its fourth and fifth wafer fabs in Kaohsiung next year, targeting the development of high-end processes. The two facilities — P4 and P5 — are part of TSMC’s production expansion program, which aims to build five fabs in Kaohsiung. TSMC facility division vice president Arthur Chuang (莊子壽) on Thursday said that the five facilities are expected to create 8,000 jobs. To respond to the fast-changing global semiconductor industry and escalating international competition, TSMC said it has to keep growing by expanding its production footprints. The P4 and P5
DOWNFALL: The Singapore-based oil magnate Lim Oon Kuin was accused of hiding US$800 million in losses and leaving 20 banks with substantial liabilities Former tycoon Lim Oon Kuin (林恩強) has been declared bankrupt in Singapore, following the collapse of his oil trading empire. The name of the founder of Hin Leong Trading Pte Ltd (興隆貿易) and his children Lim Huey Ching (林慧清) and Lim Chee Meng (林志朋) were listed as having been issued a bankruptcy order on Dec. 19, the government gazette showed. The younger Lims were directors at the company. Leow Quek Shiong and Seah Roh Lin of BDO Advisory Pte Ltd are the trustees, according to the gazette. At its peak, Hin Leong traded a range of oil products, made lubricants and operated loading
The growing popularity of Chinese sport utility vehicles and pickup trucks has shaken up Mexico’s luxury car market, hitting sales of traditionally dominant brands such as Mercedes-Benz and BMW. Mexicans are increasingly switching from traditionally dominant sedans to Chinese vehicles due to a combination of comfort, technology and price, industry experts say. It is no small feat in a country home to factories of foreign brands such as Audi and BMW, and where until a few years ago imported Chinese cars were stigmatized, as in other parts of the world. The high-end segment of the market registered a sales drop
Citigroup Inc and Bank of America Corp said they are leaving a global climate-banking group, becoming the latest Wall Street lenders to exit the coalition in the past month. In a statement, Citigroup said while it remains committed to achieving net zero emissions, it is exiting the Net-Zero Banking Alliance (NZBA). Bank of America said separately on Tuesday that it is also leaving NZBA, adding that it would continue to work with clients on reducing greenhouse gas emissions. The banks’ departure from NZBA follows Goldman Sachs Group Inc and Wells Fargo & Co. The largest US financial institutions are under increasing pressure
RSS