The government might continue it preferential mortgage loan program for first-time homebuyers by allocating another NT$300 billion (US$9 billion) after the NT$280 billion budget appropriated last August was reduced to just NT$60 billion as of the middle of last month -- but a decision is still weeks away.
An inter-ministerial meeting for officials from the central bank, the Ministry of Finance and the Ministry of the Interior scheduled for late next month, might reach a final decision, although governmental subsidies on the program's interest rates may see a slight cut, according to the central bank.
The bank remains optimistic about recent indications of a recovery in the real-estate sector as well as the loan program's impact on the market, saying that the program has helped over 540,000 households as of March.
Meanwhile, to take advantage of the improving property market, Citibank Taiwan yesterday launched its own preferential home-loan offer. The limited-time offer will provide the lowest mortgage loan prices on the market for up to 400 applicants before the end of this month.
"The bigger the loan, the better discount the rates, which can go down to as low as 1.98 percent," the bank's director of retail banking business Anand Selvakesari told a press conference yesterday morning.
To celebrate Citibank Taiwan's 40th anniversary, the program will benefit home-buyers in northern Taiwan a preferential interest rate of 1.98 percent in the first year, 2.38 percent in the second year and 2.98 percent in the third year for loans of between NT$5 million and NT$10 million.
For those borrowing between NT$4 million and NT$5 million, the floating interest rates for the first three years would be 2.38 percent, 2.68 percent and 3.28 percent, respectively. Those borrowing less than NT$3 million will have to pay interest rates over 3 percent.
Citibank's preferential-loan program, however, is not applicable to homebuyers outside of northern Taiwan borrowing more than NT$10 million.
The interest rate on the government's preferential mortgage loan is currently 2.3 percent while that on Taiwan Cooperative Bank's (
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