Taiwan’s 2025 mortgage policy update: What foreign buyers need to know

Published 4 months ago

In 2025, Taiwan introduced significant changes to its mortgage regulations aimed at cooling down an overheated housing market and curbing speculative buying. If you’re a foreigner looking to purchase property in Taiwan, understanding these new rules and their implications is essential. Here’s a breakdown of what’s new and what you can expect when applying for a mortgage.

Key policy changes at a glance

(Updated September 2025)

The Central Bank of Taiwan rolled out new selective credit controls, which include:

Lower loan-to-value (LTV) ratios: For second homes, the maximum LTV dropped by 10%. For example, if you previously qualified for a 60% loan, it might now be capped at 50%. Third homes or high-value properties face even stricter limits, sometimes as low as 30%.
No more grace periods: Previously, borrowers with existing properties could enjoy a grace period where they only paid interest, not principal, for a certain time. This benefit has been removed. Once your loan is approved, you must start repaying principal and interest immediately. However, an important update in September 2025 now allows a grace period of up to 18 months for those who can prove they are genuine "buy-and-sell" homebuyers (換屋族), easing the transition for those moving from one home to another.
Nationwide application: Unlike past rules that targeted only the six major metropolitan areas, these restrictions now apply uniformly across all regions in Taiwan.
The New Youth Mortgage Program (新青安): To counter the tightening of credit, the government has significantly boosted this program to assist first-time homebuyers. The maximum loan amount has been raised to NT$10 million, the repayment period extended to 40 years, and a grace period of 5 years is now an option. Crucially, as of September 2025, these loans are also exempted from the Banking Act’s 30% cap on real estate lending, ensuring that banks have sufficient flexibility and credit to support first-time buyers through the program.

These measures were officially announced by the Central Bank and extensively covered by major outlets like Taipei Times and Taiwan News.

Why did the government take action?

The government’s goals behind tightening mortgage rules are clear:

Cooling the housing market: Rapid price increases have made housing unaffordable for many Taiwanese families, and rampant speculation has been a major driver.
Avoiding financial risk: The authorities are wary of a housing bubble that could destabilize the broader economy.
Supporting genuine homebuyers: By limiting credit availability to investors and speculators, they hope to make it easier for first-time or owner-occupier buyers to enter the market.

Since these new rules were introduced, the share of first-time buyers in the market rose from 57% in January 2023 to 61.4% by December 2024 — a clear sign that the market dynamic is shifting.

What does this mean for foreign buyers?

Note: While the New Youth Mortgage Program (新青安) offers significant benefits, it is generally intended for Taiwanese citizens and is not accessible to foreigners. However, if your spouse is a Taiwanese citizen, you might still be able to benefit.

Higher down payment requirements
With lowered LTV ratios, banks will be more conservative about how much they lend. If you’re buying a second or third property, or a luxury home, expect to prepare for a down payment of 50% or more. First-time buyers still have a chance to secure higher loan ratios, but it’s wise to check directly with banks beforehand.
Stricter financial review
Banks will conduct more thorough checks on your financial background, both in Taiwan and abroad. Having a valid Alien Resident Certificate (ARC), stable income in Taiwan, and clear financial records will make your application stronger.
Grace periods vary by buyer type

Loan repayment rules now differ depending on the type of buyer:
- First-time buyers: Through the New Youth Mortgage Program, eligible buyers can enjoy a grace period of up to 5 years, paying interest only during this time.
- Buy-and-sell homebuyers: Those moving from one home to another can apply for a grace period of up to 18 months, easing the financial transition.
- Other buyers / investors: No grace period applies. Once the loan is approved, both principal and interest must be repaid immediately.
More documentation and longer processing times
Foreign buyers often need to submit extra paperwork like residency proofs, income documents, and translated contracts. These new policies may lengthen approval times, especially if you don’t have a long-term work or residency status in Taiwan. Starting early and consulting experienced mortgage brokers or bank contacts is highly recommended.

Foreign buyers have also reported that mortgage approvals can take longer than expected, sometimes several weeks or more, even when applying with a Taiwanese spouse. While exact timelines vary by bank, media coverage in mid-2025 confirmed that lenders have been facing approval backlogs due to tighter liquidity and more cautious lending practices.
Loan eligibility varies by bank
Taiwanese law allows foreigners to apply for mortgages, but each bank has its own standards. Banks prefer borrowers with valid residency status, local income sources, or a solid financial track record. Some banks accept overseas income but will ask for more documentation and translated materials. It’s best to compare multiple lenders to find the best fit.

💡Final tips for foreign buyers

Start preparing early: Stricter policies mean you’ll need more time to gather documents and navigate approvals.
Plan for a larger down payment: Lower LTVs and limited or no grace periods mean buyers of additional properties will need to be financially prepared.
Shop around: Different banks have different policies and tolerance levels for foreign buyers.
Get professional help: A local real estate agent, lawyer, or financial advisor familiar with foreign buyers can save you time and hassle.

Taiwan’s doors remain open to foreign property buyers, but the bar has been raised. If you’re financially prepared and well-informed, you can still make your Taiwan real estate dreams a reality even under the new 2025 mortgage regulations.

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