Reported 8 months ago
Reporter Zhongzhanghan/Taipei Real-time Report June 23, 2024, 1:07 a.m. The volume of affordable housing loans in New Qing'an has become the preferred loan option for first-time homebuyers, with the 5-year grace period and 40-year housing loan being the most relaxed payment method in the market in the short term. When calculating a 40-year New Affordable Housing loan of 10 million NT dollars with no early repayment, the interest expenditure can reach up to 5.5 million NT dollars, meaning borrowing 10 million over 40 years will require repayments of 15.5 million NT dollars. According to executive manager Ceng Jingde of the research department of Sinyi Real Estate Co., Ltd., selecting the appropriate loan tenure, developing a sound financial plan, and repayment strategy can reduce the burden. Ceng pointed out that although some banks have introduced 40-year housing loan repayment methods, they are still in the minority. New Qing'an is one of the few public banks that offer a 40-year housing loan with cooperation policies allowing first-time homebuyers to reduce their monthly repayments significantly after the grace period. However, the cost of delaying principal repayments is the significant increase in interest. Ceng indicated that first-time homebuyers now think differently from their elders; while the older generation may have held the idea of repaying the bank as soon as possible due to higher interest rates in the past, with current housing loan rates around 2%, borrowing for housing has become more cost-effective than renting. Moreover, with various investment and financial tools available, some individuals engage in debt leveraging, ETF and stock market investments. The concept of repaying loans later instead of earlier and treating housing loan interest as rent have emerged. Ceng suggests that there are no absolute good or bad tools in financial planning, emphasizing the importance of selecting the most suitable option and maintaining a conservative mindset, especially in preparation for economic downturns or unforeseen circumstances affecting investments or employment stability.
Source: YAHOO