The central bank’s monthly data for consumer loans showed a slight increase of 0.5 percent last month from April, led mainly by mortgages and construction loans.
The central bank defines consumer loans as including housing loans, loans for home renovation, loans for construction, car loans, revolving credit for credit cards and labor welfare loans.
Figures released by the bank on Friday last week showed that consumer loans reached a record NT$8.056 trillion (US$265.8 billion), up NT$40.507 billion from the previous month.
Last month’s figures were NT$321.074 billion, or 3.99 percent, more than the NT$7.735 trillion from a year earlier, which suggests that Taiwan’s economy remains on course for steady growth.
The latest central bank data indicated that the property market continued to show signs of recovery, as housing loans rose for a 15th straight month to a record NT$6.751 trillion last month, up NT$33.433 billion, or 0.5 percent, from the previous month.
Compared with the same period a year ago, housing loans grew NT$305.957 billion, or 4.75 percent, tallies showed.
“Housing loans have seen an annual increase of 4 to 5 percent every month since the beginning of last year, indicating that the market is on a solid footing,” the central bank said.
Mortgages with preferential interest rates for first-time homebuyers rose by NT$2.5 billion to NT$644.2 billion last month from April, accounting for 9.54 percent of total housing loans compared with April’s 9.55 percent, it said, adding that demand from young and first-time buyers is still solid.
Construction loans, which are indicative of the construction sector’s attitude toward the market, also grew for a fourth straight month to a record NT$1.754 trillion last month, up 0.28 percent month-on-month.
On an annual basis, construction loans grew 5.52 percent last month, following an annual increase of 5.37 percent in April, which the central bank said indicates construction companies’ upbeat outlooks about the property market and lenders’ positive attitudes toward such loans.
On Thursday, the central bank adjusted upward its economic growth forecast for Taiwan this year from 2.58 percent to 2.68 percent on the back of a recovering local economy, but said homeowners should ensure that they can afford additional mortgage costs if interest rates go up.
The Financial Supervisory Commission is paying close attention to rising mortgages, as the commission’s latest statistics showed that non-performing mortgages reached NT$17.2 billion last month, with the bad-loan ratio hitting a six-year high of 0.26 percent.
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