Yang Chin-long Urges Shorter Grace Periods, Builder Concessions for New Youth Housing Loans

Taiwan’s Ministry of Finance and eight state-owned banks launched the New Youth Housing Loan program on Aug. 1, 2023, offering loans of up to NT$10 million per household, terms of up to 40 years and grace periods of up to five years. The current program runs through July 31, 2026. Its preferential terms were once seen as fueling homebuying demand, making support for first-time buyers, home-price adjustments and bank lending risks key issues in the review of the program’s proposed 2.0 version.

Central bank Governor Yang Chin-long told the legislature’s Finance Committee on March 30, 2026, that Ministry of Finance data showed about 75% of borrowers had grace periods of no more than three years. He argued that moderately shortening the period would encourage prudent planning by borrowers and reduce risks for banks. Yang also urged developers to offer concessions while retaining reasonable profits. On June 10, he said selective credit controls would not be tightened further, expressing hope for a soft landing in the housing market.