Essential Lending Standards in Taiwan
Subsidized 'New Youth Housing Loan' (新青安房貸) offers government rate subsidies, 5-year grace period (寬限期), and loan terms up to 40 years.
Central Bank CBC 7th wave selective credit controls (信用管制) enforce strict LTV caps and remove grace periods for multi-property owners.
Mandatory Residential Fire & Earthquake Insurance (住宅地震基本保險) required for all bank-financed properties.
Self-use residential properties qualify for favorable preferential Land Value Tax (0.2%) and House Tax (1.2%) rates.
Borrowing Limits & Stress-Testing in Taiwan
Central Bank of the Republic of China (Taiwan) and commercial banks recommend debt-to-income (收支比) not exceeding 60%, with mortgage payments ideally under 33% - 40% of net monthly income.
Property Taxes & Upfront Purchase Costs
Buyers pay Deed Tax (契稅, 6% of government-assessed house standard value) and registry fees. Ongoing ownership incurs preferential self-use House Tax (1.2%) and Land Value Tax (0.2%).
Frequently Asked Questions
What is the minimum down payment required in Taiwan?
In Taiwan, buyers typically require at least 15% equity down payment. However, maintaining 20% equity often eliminates additional mortgage insurance charges.
What are the average upfront purchasing fees in Taiwan?
Upfront transaction fees (Deed Tax (契稅), Land Administration (代書費) & Registry Fees) average approximately 1.5% of the purchase price and must usually be funded with cash equity.