The central bank said its recent discussions about shortening mortgage periods would not affect first-time home buyers or urban renewal projects, but would be aimed at corporate buyers and multiple home owners, who are already subject to selective credit controls.
The central bank made the clarification in a statement on Saturday to calm fears that it would shorten mortgages from 30 years to 20 years during its June policy meeting in another bid to cool the housing market.
Central bank Governor Yang Chin-long (楊金龍) had told a meeting of the legislature’s Finance Committee on Thursday that there was still room for improvement regarding efforts to regulate real-estate financing, especially in areas with evident price hikes.
Photo: CNA
“House loans remain high, though stable,” Yang told lawmakers, adding that he was considering further selective credit controls, such as tightening mortgage terms and lowering loan-to-value ratios.
Property analysts said the proposed measures, if realized, would hit young first-home buyers the hardest, as their monthly mortgage payments could inflate significantly and many might default, wreaking havoc on the nation’s financial system.
People with 30-year mortgages of NT$10 million (US$335,412) would have to pay NT$49,413 per month, up from NT$35,724 at present, if they are switched to a 20-year mortgage scheme with an annual interest rate of 1.75 percent, senior property broker Lee Tung-rong (李同榮) said.
Shortening mortgage periods is a policy tool under consideration that would not apply to first-time home buyers, who have been excluded from its previous four macro-prudential measures, the central bank said.
Fresh selective credit controls, if deemed necessary at the board meeting on June 16, would only target corporate buyers, houses in hotspots and people who have third home mortgages, the central bank said.
Hotspots refer to the six special municipalities: Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, as well as Hsinchu City and Hsinchu County.
The central bank has banned grace periods for home purchases in those areas and is considering whether to cut their loan-to-value ratios, Yang said.
Lower loan-to-value ratios proved effective in cooling property fever years ago, he said, adding that stricter mortgages would also make home owners more cautious when planning their finances.
Several board members at the central bank’s March meeting said that housing price hikes bolster inflationary pressures, and the popular belief that owning real estate is the best defense against inflation suggests a need for policy intervention before it is too late.
After several years flying high as Asia’s best Nvidia Corp proxy, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is increasingly vying with other artificial intelligence (AI) stocks for investor attention. Stock traders are chasing a wider array of beneficiaries as mainstream usage of AI creates demand for hardware beyond the most-advanced chips TSMC makes for Nvidia. Subthemes from the deepening memory crunch to advances in robotics are also luring bids. At the same time, investment caps on single stocks are pushing funds to diversify, while retail investors long familiar with TSMC through its US depositary receipts are being offered a broader set of
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
TECH RELIANCE: Growth is increasingly reflecting an unequal K-shaped distribution, where technology sectors outperform and other industries struggle, an expert said Standard Chartered Bank has significantly raised its forecast for Taiwan’s economic growth to 9.5 percent this year, up from 7.6 percent previously, citing surging artificial intelligence (AI) demand driving exports, semiconductor production and investment. The upgrade reflects a sustained AI supercycle that continues to fuel demand for advanced chips and technology infrastructure, which form the backbone of Taiwan’s exports, the bank said in a report this week. “We raise our 2026 growth forecast to reflect a much stronger-than-expected first-quarter GDP figure,” Standard Chartered senior economist for greater China and Asia Tommy Wu (胡東安) said in the report. Driven largely by a 35.3 percent
Two of Taiwan’s international carriers, Starlux Airlines Co (星宇航空) and EVA Airways Corp (長榮航空), have retained the five-star airline rating awarded by international airline review organization Skytrax. Starlux was awarded the distinction for a second consecutive year, while EVA Air received it for the 11th straight year, Skytrax said in statements released yesterday and on Thursday last week, respectively. The five-star rating is considered one of the airline industry's highest honors and is awarded following professional audits of airline product and frontline service standards, Skytrax said. The ratings are based on in-depth assessments using unified global quality standards rather than customer review scores
RSS