Reported about 1 year ago
In the sixth wave of credit control measures this year, the Central Bank reduced the maximum loan-to-value ratio for second home loans in seven metropolitan areas in Taiwan and Hsinchu from 70% to 60% to combat speculative housing activities. While the interest rates remained unchanged, the move aimed at the overheated housing market reflected a cautious approach. The control measures mainly target specific areas and may divert funds to non-restricted regions. First-time homebuyers are not significantly affected. Despite concerns like 'ghost households' and 'fake self-occupancy and real rental', the New Green Tranquility policy has received positive responses with over 50,000 loan applications approved by the end of April. The Ministry of the Interior suggests conservative financial planning for first-time buyers to avoid potential impacts from unexpected loan conditions. The moderate approach of the Central Bank's credit control measures signals a softer policy direction without expanding the scope of restrictions.
Source: YAHOO