Non-Policy Mortgage Rates Expected to Stabilize in Second Quarter as Housing Volumes Shrink and Prices Hold Steady

Taiwan’s central bank has required banks to reduce their concentration of real-estate lending since the second half of 2024. As state-owned banks tightened lending quotas and risk controls, rates on non-policy mortgages continued to rise. These loans exclude preferential programs such as the New Youth Housing Loan and directly affect financing costs for typical homebuyers. The program offers loans of up to NT$10 million, and changes to its interest subsidy also influence owner-occupier demand.

State-owned banks said on April 16, 2026, that mortgage rates had gradually stabilized in the first quarter of 2026. With the central bank holding its policy rate unchanged for eight consecutive quarters, they expect rates on new non-policy mortgages to stabilize in the second quarter. Rates currently start at about 2.45% to 2.6%. The New Youth Housing Loan interest subsidy was originally scheduled to expire on July 31. Taiwan is expected to record 250,000–280,000 property transfers for the full year, with the market likely to see lower volumes but stable prices in the near term.