Taiwan Central Bank’s Housing Credit Curbs Show Early Results While Retaining More Flexibility Than South Korea’s

Taiwan’s central bank has introduced seven rounds of selective credit controls since late 2020. In September 2024, it lowered the maximum loan-to-value ratio for an individual’s second home nationwide to 50% and eliminated grace periods. The measures are intended to curb speculation and excessive concentration of bank lending in real estate, with their success hinging on whether home prices can achieve a soft landing without undermining financial stability.

A June 1, 2026, report said housing transactions had declined and prices had entered a period of consolidation. With the controls showing results, the central bank raised the mortgage cap for an individual’s second home from 50% to 60%, effective March 20. South Korea, by contrast, caps mortgages at 200 million won for homes priced at 2.5 billion won or more—about NT$52 million—in designated areas, resulting in a loan-to-value ratio of less than 10%. Taiwan has no maximum mortgage amount.