One in every three home mortgage borrowers in the first quarter were 35 years old or younger, suggesting growing interest among young people in the government’s latest youth mortgage program, Taiwan Realty Enterprise Group (台灣房屋集團) said.
Citing data from the Joint Credit Information Center, Taiwan Realty said that 33.2 percent of home mortgage borrowers from January to March were aged 35 or younger, up from 31.7 percent last year.
Tainan and Kaohsiung led among the six special municipalities, with 36.8 percent and 36.5 percent respectively, while Taoyuan came in third with 35.7 percent, the property sales agency said.
Photo: CNA
Taiwan Realty section chief Charlene Chang (張旭嵐) attributed the rising ratio of young mortgage borrowers to the government’s “mortgage program 2.0” for the young generation, which was launched in August 2023.
Under the latest youth mortgage program, the ceiling for housing loans was set at NT$10 million (US$340,240), up from NT$8 million in the previous program, while the loan term was extended to a maximum of 40 years from 30 years in the previous program.
In addition, repayment of the principal is suspended in the first five years, compared with three years in the previous program.
Chang said the conditions under the 2.0 program have created a more friendly home-buying environment for the younger generation.
With the higher cap on mortgages, young people are more capable of buying their own home or a better and more comfortable one if they also secure financial help from their parents, she said.
However, as the central bank has imposed rounds of selective credit controls to rein in housing prices, it has been getting harder for home buyers to secure loans, Taiwan Realty said.
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