Taiwan Banks Tighten Mortgage Lending: Applicants Without NT$1.5 Million Annual Salary Face Rejection

Taiwan’s public banks are tightening mortgage lending requirements, particularly for the government’s ’New First-Time Homebuyers’ (新青安) program, by informally requiring an annual income of at least NT$1.5 million for approval. This unwritten rule has been exposed by a 32-year-old Taichung resident, surnamed Lai, whose application was rejected despite meeting official qualifications. Lai, who purchased a NT$12 million pre-sale apartment, was told that both his income and the property’s location (outside the city planning area) were insufficient for loan approval at the favorable 1.775% interest rate. Official statistics reveal Taichung’s average annual wage is just NT$690,000—less than half the new de facto threshold. The Central Bank’s recent policy tightening, including lowered mortgage-to-value ratios and stricter grace periods, has further pressured banks to restrict lending mainly to high-income applicants. Banking industry insiders say the NT$1.5 million benchmark now functions as an industry norm, limiting access to preferential rates for ordinary buyers. Market observers warn that these practices, unless adjusted, risk rendering the housing policy ineffective for its intended demographic, raising concerns over growing inequality and cooling property liquidity. The report also recommends that first-time buyers consider increasing their own down payments and optimizing cash flow to improve loan approval chances. Keywords used: Taiwan housing market, mortgage policy, first-time buyers, public banks, central bank tightening, income requirements.