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.
PATENTS: MediaTek Inc said it would not comment on ongoing legal cases, but does not expect the legal action by Huawei to affect its business operations Smartphone integrated chips designer MediaTek Inc (聯發科) on Friday said that a lawsuit filed by Chinese smartphone brand Huawei Technologies Co (華為) over alleged patent infringements would have little impact on its operations. In an announcement posted on the Taiwan Stock Exchange, MediaTek said that it would not comment on an ongoing legal case. However, the company said that Huawei’s legal action would have little impact on its operations. MediaTek’s statement came after China-based PRIP Research said on Thursday that Huawei filed a lawsuit with a Chinese district court claiming that MediaTek infringed on its patents. The infringement mentioned in the lawsuit likely involved
Taipei is today suspending work, classes and its US$2.4 trillion stock market as Typhoon Gaemi approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed income trading, statements from its stock and currency exchanges said. Authorities had yesterday issued a warning that the storm could affect people on land and canceled some ship crossings and domestic flights. Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) expects its local chipmaking fabs to maintain normal production, the company said in an e-mailed statement. The main chipmaker for Apple Inc and Nvidia Corp said it has activated routine typhoon alert
GROWTH: TSMC increased its projected revenue growth for this year to more than 25 percent, citing stronger-than-expected demand for AI devices and smartphones The Taiwan Institute of Economic Research (TIER, 台灣經濟研究院) yesterday raised its forecast for Taiwan’s GDP growth this year from 3.29 percent to 3.85 percent, as exports and private investment recovered faster than it predicted three months ago. The Taipei-based think tank also expects that Taiwan would see a 8.19 percent increase in exports this year, better than the 7.55 percent it projected in April, as US technology giants spent more money on artificial intelligence (AI) infrastructure and development. “There will be more AI servers going forward, but it remains to be seen if the momentum would extend to personal computers, smartphones and
CHANGE OF FORTUNES: Concern over a pricey valuation and the risk of tighter US curbs on chip sales to China have poured cold water on TSMC’s bullish momentum Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares fell the most in three months yesterday upon trading resumption, joining a global technology rout as investors dramatically soured on the promises of artificial intelligence (AI). The shares declined 5.62 percent to close at NT$924 in Taipei, dragging down the benchmark TAIEX, which fell 3.29 percent to 22,119.21 points amid a technical correction, Taiwan Stock Exchange data showed. Other chip stocks also fell, with ASE Technology Holding Co (日月光投控) plunging 9.86 percent, MediaTek Inc (聯發科) dropping 2.35 percent, Realtek Semiconductor Corp (瑞昱) falling 1.33 percent and United Microelectronics Corp (聯電) retreating 1.17 percent, while Apple