Finance minister Chang Sheng-ford says his ministry will raise the limit on youth housing loans to NT$8 million. He made the announcement at a Cabinet press conference Thursday.
Chang said the new limit will take effect the first day of 2016 to meet the huge demand from young people purchasing houses. He said the current limit of NT$5 million doesn’t address that demand, with around 35 percent of youth in need of a larger loan to buy a house.
"Taipei City’s housing prices are high. Every square meter costs NT$186,000. An 82.5 square-meter house costs NT$15.4 million. In New Taipei City, every square meter costs NT$97,000. An 82.5 square-meter house costs NT$8 million," Chang said. "Currently, loans only cover around 80 percent of homebuyers’ needs. They can only borrow NT$6.4 to NT$12.32 million."
Chang also said that since youth housing loans were first offered in 2010, the ministry has loaned NT$700 billion to home buyers. He said it is estimated that 7,290 households will benefit from the increased loan limit.