The Ministry of Finance and state-run lenders are discussing measures to crack down on property speculation and the misuse of favorable lending terms intended for first-time home buyers and self-occupancy.
The ministry on Monday exchanged views with ranking officials from eight state-run banks. They are to meet again today to establish rules to prevent abuse of the stimulus program.
In August last year, the ministry refined its preferential program that offers people buying their first home a favorable interest rate of 1.775 percent, a five-year grace period and mortgages for up to 40 years. The interest subsidy lasts for three years for mortgages capped at NT$12 million (US$370,405).
Photo: CNA
The program has since helped the housing market emerge from a slowdown induced by the government’s selective credit controls, interest rate hikes, tightened income taxes on short-term property transactions and a ban on transfers of presale house purchase agreements.
Minister of Finance Chuang Tsui-yun (莊翠雲) on Monday reportedly urged state-run lenders to tighten reviews of mortgage applications to root out dummy buyers and request affidavits stating that those taking out a loan would not lease their house or use it for investment purposes.
Those found to have misused the program would have their favorable lending terms revoked and would have to return the interest subsidy, people from the state-run lenders said, adding that interest rates vary for borrowers depending on their credit profile.
Critics of the program say housing prices have increased at a rate that outweighs the benefits of the stimulus, and buyers, especially young people, could find it difficult to shoulder their mortgage once the interest subsidy and grace period expire.
Premier Cho Jung-tai (卓榮泰) yesterday said that the Executive Yuan would conduct a thorough review of the program next week.
For a mortgage of NT$10 million, monthly payments amount to NT$31,983 under favorable lending terms, H&B Business Group (住商不動產) research head Jessica Hsu (徐佳馨) said.
The monthly payment would rise by NT$2,101 without the interest subsidy, a sizeable increase for average borrowers, Hsu said.
The average price of houses assessed by banks nationwide climbed to a new high of NT$13.55 million in the first quarter, suggesting a spike of NT$2.35 million from 2019, Chinatrust Real Estate Co (中信房屋) said yesterday, citing data from the Joint Credit Information Center (金融聯合徵信中心).
Kaohsiung reported the steepest advance of 30.1 percent, followed by Taoyuan’s 30 percent, as the two administrations have improved their infrastructure, Chinatrust said.
Kaohsiung reported largest number of home deals under NT$12 million between August last year and this month, as major tech firms are building new plants in the southern city, Great Home Realty Co (大家房屋) said.
HANDOVER POLICY: Approving the probe means that the new US administration of Donald Trump is likely to have the option to impose trade restrictions on China US President Joe Biden’s administration is set to initiate a trade investigation into Chinese semiconductors in the coming days as part of a push to reduce reliance on a technology that US officials believe poses national security risks. The probe could result in tariffs or other measures to restrict imports on older-model semiconductors and the products containing them, including medical devices, vehicles, smartphones and weaponry, people familiar with the matter said. The investigation examining so-called foundational chips could take months to conclude, meaning that any reaction to the findings would be left to the discretion of US president-elect Donald Trump’s incoming team. Biden
INVESTMENT: Jun Seki, chief strategy officer for Hon Hai’s EV arm, and his team are currently in talks in France with Renault, Nissan’s 36 percent shareholder Hon Hai Precision Industry Co (鴻海精密), the iPhone maker known as Foxconn Technology Group (富士康科技集團) internationally, is in talks with Nissan Motor Co’s biggest shareholder Renault SA about its willingness to sell its shares in the Japanese automaker, the Central News Agency (CNA) said, citing people it did not identify. Nissan and fellow Japanese automaker, Honda Motor Co, are exploring a merger that would create a rival to Toyota Motor Corp in Japan and better position the combined company to face competitive challenges around the world, people familiar with the matter said on Wednesday. However, one potential spanner in the works is
Call it an antidote to fast fashion: Japanese jeans hand-dyed with natural indigo and weaved on a clackety vintage loom, then sold at a premium to global denim connoisseurs. Unlike their mass-produced cousins, the tough garments crafted at the small Momotaro Jeans factory in southwest Japan are designed to be worn for decades, and come with a lifetime repair warranty. On site, Yoshiharu Okamoto gently dips cotton strings into a tub of deep blue liquid, which stains his hands and nails as he repeats the process. The cotton is imported from Zimbabwe, but the natural indigo they use is harvested in Japan —
HON HAI LURKS: The ‘Nikkei’ reported that Foxconn’s interest in Nissan accelerated the Honda-merger effort out of fears it might be taken over by the Taiwanese firm Nissan Motor Co has become the latest buyout target in Japan as it explores a merger with Honda Motor Co and faces an overture from Hon Hai Precision Industry Co (鴻海精密), known as Foxconn Technology Group (富士康科技集團) internationally. Shares in Nissan yesterday jumped 24 percent, the most on record, to hit the daily limit, after the two Japanese automakers acknowledged that talks are ongoing to better position themselves for competitive challenges during a time of upheaval in the global auto industry. Foxconn — a Taipei-based manufacturer of iPhones, which has been investing heavily in factories to build electric vehicles — has also
RSS