New Youth Housing Loan Share Falls as Five Major Taiwan Banks’ Mortgage Rate Hits 17-Year High

Taiwan’s central bank tracks housing-market funding through new lending by Bank of Taiwan, Land Bank of Taiwan, Taiwan Cooperative Bank, First Commercial Bank and Hua Nan Commercial Bank. Mortgage data from the five banks are a key gauge of residential transaction activity. New mortgage lending has declined amid credit controls and tighter bank lending standards, indicating that homebuying demand remains subdued and government-backed loans have become the main source of support.

The central bank said new mortgages issued by the five banks totaled NT$53.336 billion in April, down about NT$5.7 billion from March and the second-lowest level in nearly seven months, as the housing market continued its soft landing. New Youth Housing Loans accounted for 42.91% of new mortgages during the period, equivalent to about NT$43 of every NT$100 in new lending. The figures underscore the importance of owner-occupier demand and preferential government-backed loans during the market consolidation.

Central bank mortgage balance data reflect domestic banks’ credit supply to the residential property market and serve as a key gauge of housing demand and fund flows. The government’s New Preferential Housing Loan Program for the Youth supports first-time buyers and owner-occupiers. Its growing share amid continued selective credit controls indicates that underlying homebuying demand remains resilient.

Taiwan’s outstanding mortgage balance reached a record NT$11.6 trillion at the end of January 2026. Annual growth rebounded to 4.55%, ending 15 consecutive months of slowing, partly because the Lunar New Year fell in January 2025 and created a lower comparison base. Outstanding loans under the youth program rose to NT$1.5 trillion, accounting for 13.21% of all mortgages.