Wed, Jun 27, 2012 - Page 13 News List

Mortgages buck trend with strong growth

By Amy Su  /  Staff reporter

Mortgages for last month posted their largest month-on-month rise since March last year, central bank data showed, which reflected a rebound in the real-estate sector.

Mortgages rose NT$23.14 billion (US$771.59 million), or 0.44 percent, to NT$5.289 trillion last month from a month earlier, the highest growth in 14 months, the central bank said.

A total of NT$13.1 billion came from policy-based loans operated by state-owned banks, mainly for “Youth Start-up Loans” that young adults can apply for to extend their loan repayment period, a central bank official said.

“We continue to remind banks to pay attention to risk control when handing out mortgages,” the official said, adding that this would maintain stability in the financial system and the real-estate market.

On an annual basis, mortgages rose 1.62 percent last month, faster than the 1.47 percent rise posted in April, ending a slower pace of growth over the past 13 months, central bank data showed.

However, annual growth in construction loans hit its lowest level since June 2010. It rose 8.66 percent year-on-year to NT$1.448 trillion last month, statistics showed.

Construction loans for last month slightly increased 0.44 percent from a month ago, higher than the growth rate of 0.31 percent recorded in April, the bank said.

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