Taiwan to launch Qing'an 3.0 housing loan program with income and age caps

Taiwan's Executive Yuan is set to approve the "Qing'an 3.0" housing loan program on July 16, introducing new eligibility criteria and loan limits.

The revised program aims to assist first-time homebuyers and families, with a maximum loan amount of NT$10 million (approximately $300,000 USD). The government will offer additional support for newly married and child-rearing families, potentially increasing their loan limits. However, the government will no longer subsidize interest rates if the central bank raises its benchmark rate.

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Qing'an loans have been implemented since 2000. In August 2023, an enhanced plan was introduced, increasing the loan amount from NT$8 million to NT$10 million, with a 5-year grace period, a maximum loan term of 40 years, and interest subsidies.

Eligibility for the loan will be capped at individuals under 50 years old. A key change is the income threshold, with a maximum annual household income of NT$2 million (approximately $60,000 USD) required to qualify. This measure aims to target assistance to those most in need.

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From Qing'an 1.0 to Qing'an 2.0, the cumulative number of households reached 516,475, with a disbursed amount of NT$2.7828 trillion. For Qing'an 2.0 alone, there were 171,705 borrowing households, with a cumulative disbursed amount of NT$1.3411 trillion.

The program also introduces tiered property value limits based on location. Taipei properties will have a maximum value of NT$35 million (approximately $1.06 million USD), while New Taipei City and Hsinchu County/City will have a NT$25 million limit (approximately $760,000 USD). Other regions will have a NT$20 million cap (approximately $600,000 USD). These limits are based on median housing prices assessed by the Ministry of the Interior.

The Qing'an loan program has been in place since 2010. The previous iteration, Qing'an 2.0, which began in August 2023, saw over 170,000 households borrow NT$1.34 trillion. The cumulative number of borrowers since the program's inception is over 516,000, with a total loan amount exceeding NT$2.78 trillion.

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The loan limit is NT$10 million. For newly married and child-rearing families with greater housing needs, the total loan amount will be further increased.