TAIPEI (Taiwan News) — Taiwan is preparing to launch the New Youth Loan 2.0 program to replace an existing housing loan initiative aimed at helping young people purchase their first homes, which is set to expire at the end of July.
Finance Minister Chuang Tsui-yun (莊翠雲) had originally planned to announce details of the new program by the end of June, but no announcement has yet been made. Members of the legislature's Finance Committee questioned the delay on Wednesday, asking whether housing assistance remained a government priority, per NowNews.
Chuang said the government is currently reviewing adjustments to the program and promised to announce details within two weeks. She said future rules will consider factors including borrower age and income, while families with children may receive different loan amounts from general applicants.
The original New Youth Loan program, launched in August 2023, provides eligible first-time homebuyers with loans of up to NT$10 million (US$310,000), a maximum repayment period of 40 years, and a five-year grace period during which borrowers pay only interest.
Under the old program, the government subsidizes 1.5 basis points of interest rates through state-owned bank loans. It is available to individuals aged 18 or older, as well as their spouses and minor children, who do not own residential property, per a Cabinet press release.
TPP Legislator Liu Shu-pin (劉書彬) said data from state-owned banks showed that more than 6,700 borrowers, or 5.23% of applicants, were over age 50, while more than 18,000 borrowers, or 14.38%, had annual incomes exceeding NT$2 million (US$62,000), per NowNews.
Chuang responded by citing Finance Ministry data showing 72% of applicants were under age 40 and 95% were under age 50, meaning older applicants were a minority. However, she said the government would consider legislators' suggestions and include age-related factors in future adjustments.
Chuang said the purpose of the program is to assist people who do not own homes and genuinely need support. As a result, income restrictions will be considered, with applicants above a certain income threshold potentially excluded from the program.
Liu also suggested that the government consider factors such as maximum loan amounts and a reasonable price-to-income ratio to prevent the policy from further driving up housing prices. She noted that Taiwan's housing price-to-income ratio is already higher than in many other countries.
KMT Legislator Lee Yen-Hsiu (李彥秀) asked whether the revised program would restrict eligibility to applicants with annual incomes below NT$2 million and whether homes priced above NT$35 million would be excluded.
Chuang said detailed regulations would be announced within two weeks and assured lawmakers that current applicants would not be negatively affected by the transition. She added that income-based eligibility rules would not be designed as "punitive conditions."
Reports said that the New Youth Loan 2.0 program may introduce a new age restriction, limiting eligible borrowers to those under 50 years old. The rumored change would be implemented through an "80-year clause," meaning that a borrower's age combined with the loan repayment period cannot exceed 80 years, per ETToday.
Other rumored changes include special provisions for families with newborn children. Under the proposed revisions, households with children may be allowed to borrow more than the standard limit, with the maximum loan amount potentially increasing to NT$15 million to provide greater support for young families.
