The Cabinet yesterday gave the go-ahead to a Ministry of Finance proposal for preferential interest rates for first-home purchases to support housing justice, ahead of a rally planned on Sunday to protest housing unaffordability.
Those who have not previously owned a home and do not have children who are homeowners would be able to apply for the three-year preferential interest rate of 1.775 percent and borrow up to NT$10 million (US$321,688), up from the previous NT$8 million, the ministry said.
The grace period in which borrowers only have to make payments on interest, and not on the principal, has also been extended from three years to five years, it said.
Photo: CNA
The package was announced after the government raised the cap on taxes for multiple home ownership from 3.6 percent to 4.8 percent to help curb hoarding, a practice widely blamed for fueling price increases.
The preferential loans are expected to benefit 58,000 buyers, and cost the government and state-run lenders NT$5 billion, Deputy Minister of Finance Frank Juan (阮清華) told reporters, adding that the figures might be higher depending on how many loans are approved.
State-run Bank of Taiwan (臺灣銀行), Land Bank of Taiwan (臺灣土地銀行), Taiwan Cooperative Bank (合作金庫商業銀行), First Commercial Bank (第一商業銀行), Hua Nan Commercial Bank (華南商業銀行) and Chang Hwa Commercial Bank (彰化商業銀行) would offer loans of up to 40 years, and absorb interest losses of 12.5 basis points, Juan said.
The government would bear the remaining cost of 25 basis points using its housing fund, he said.
That is the lowest borrowing cost available, as interest rates for standard mortgages are 2.03 percent, he said.
The favorable lending terms aim to lower the thresholds for young people to buy their own home, Juan said.
However, while it is called a purchasing subsidy for young people, there is no age limit to apply.
Housing unaffordability has been a top complaint and civic groups are organizing a rally in front of the Presidential Office Building to vent their displeasure.
The government has since 2010 introduced preferential interest rates to help people buy homes, benefiting 340,000 people, Juan said, adding that a considerable number have paid their debts.
The preferential interest rates would take effect on Aug. 1 and run through July 31, 2026, the ministry said.
H&B Realty Co (住商不動產) said the package would help invigorate the property market, which has slowed following five interest rate hikes by the central bank to tame inflation.
Still, buyers need to exercise careful financial planning, as the interest subsidy would only last for three years, it said.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
RSS