1 in 3 home mortgage borrowers in Taiwan were 35 or younger in Q1

Taipei, June 24 (CNA) One in every three home mortgage borrowers in Taiwan were 35 years old or younger in the first quarter of this year, suggesting there was growing interest among young people in the government's latest youth mortgage program, according to Taiwan Realty Enterprise Group.

Citing data from the Joint Credit Information Center, Taiwan Realty, one of the major property sales agencies in the country, 33.2 percent of home mortgage borrowers during the January-March period were 35 years old or younger.

The first quarter ratio was higher than the 31.7 percent in 2024, while Tainan and Kaohsiung in southern Taiwan even recorded a ratio of 36.8 percent and 36.5 percent, respectively, the two highest levels among the six largest cities in Taiwan, Taiwan Realty said.

Taoyuan in the north came in third with 35.7 percent in the first quarter, the real estate agency said.

This suggested there was a larger portion of young home buyers in the local home market in recent years due to easier access to loans and higher mortgages, as a result of the government program, according to the company.

In a statement, Taiwan Realty's Charlene Chang (張旭嵐) said the growing ratio of young home mortgage borrowers largely resulted from the government's "mortgage program 2.0" for the young generation, which was launched in August 2023.

Under the youth mortgage program, the ceiling of housing loans was set at NT$10 million (US$336,315), up from NT$8 million in the earlier program 1.0, while the maturity of a mortgage is set at a maximum of 40 years, longer than the 30 years in the previous program.

In addition, home buyers are allowed to not pay the principal in the first five years under the new program, compared with three years in the earlier version.

Chang said the conditions under the program 2.0 have created a more friendly home buying environment for the young generation.

She said the higher cap of the mortgages have made the young generation more capable of buying their own home and a better or more comfortable one if they also secure financial help from their parents.

However, as the central bank imposed rounds of selective credit controls on the home market to rein in housing prices, it has been getting harder for home buyers to secure loans, Taiwan Realty said.

In September of 2024, the bank imposed a seventh tranche of selective credit controls on the market, which property dealers claimed were the most severe in history by further capping mortgages home buyers can secure to rein in housing prices.