Taiwan Finance Ministry Meeting Focuses on New Youth Mortgages and Taiwan-U.S. Credit Guarantees

Taiwan’s New Youth Housing Loan program was launched by eight state-owned banks under Ministry of Finance supervision on August 1, 2023. It offers loans of up to NT$10 million, terms of as long as 40 years and a five-year grace period. Government and bank subsidies totaling 50 basis points cut the single-tier interest rate to 1.775%. The preferential terms expire on July 31, 2026, and any extension will affect both first-time homebuyers’ costs and banks’ funding expenses.

The ministry first convened the eight state-owned banks on February 9, 2026, to estimate the funding and capital impact of a financing guarantee mechanism for $250 billion of U.S.-bound investment. At a March 11 meeting of bank chairs and presidents, it also called for stronger internal controls and post-loan management. By June 10, the banks had recommended phasing out the New Youth Housing Loan subsidy and shortening the grace period from five years to three. Without the subsidy, the interest rate would be about 2.275%, still below market rates starting at roughly 2.5%.