Laws and Regulations Database of the Central Bank of the Republic of China(Taiwan)

1.This Regulations are promulgated pursuant to Articles 28, 29 and 31 of The 
　Central Bank of the Republic of China（Taiwan）Act and Paragraph 2, Article 37 
　and Article 40 of the Banking Act of the Republic of China.

2.The terms used in these Regulations shall have the following meanings: 
　(1)"Financial institutions" shall include domestic banks, branches of foreign banks in Taiwan,
　　　credit cooperatives, Agricultural Bank of Taiwan, credit departments of farmers’ 
　　　associations, credit departments of fishermen's associations, Chunghwa Post Co., Ltd.,and
　　　insurance companies.
　(2)"Specific areas" shall include Taipei City and 13 districts in New Taipei City covering 
　　 Banciao District, Sanchong District, Jhonghe District, Yonghe District, Sinjhuang District,
　　 Xindian District, Tucheng District, Lujhou District, Shulin District, Sijhih District,
　　 Sansia District, Linkou district and Danshuei District.
　(3)"Housing loan" shall mean a mortgage extended by a financial institution to a borrower 
　　 for purchasing a house (land included) located in specific areas where the title deed of 
　　 the house contains the wording "residential".
　(4)"High-priced housing loan” shall mean a mortgage extended by a financial institution to
　　　a borrower for purchasing a house (land included) meeting any of the following criteria 
　　　where the title deed of the house contains the wording “residential”: a. The house is 
　　　located in Taipei City or New Taipei City with an appraised value or purchase price of 
　　　NT$80 million or more; orb. The house is located in an area within Taiwan other than 
　　　Taipei City and New Taipei City with an appraised value or purchase price of NT$50 
　　　million or more.
　(5)"Home Mortgage loan” shall mean housing loan and high-priced housing loan.
　(6)"Land loan" shall mean a loan extended by a financial institution to a borrowers that is 
　　　secured by land in a residential district or a commercial district designated under urban 
　　　planning.
　(7)“Borrower” shall mean individuals and corporate body.

3.Before extending a housing loan to an individual, the financial institutions should make 
　inquiry with the Joint Credit Information Center (hereinafter the   “JCIC”) on the loan 
　applicant. If the loan applicant already has one or more loans secured on his/her house 
　(land included) and the secured loan has a classification code of "1" (real estate purchase), 
　the terms of the loan for the applicant shall be subject to the following restrictions:
　(1) No grace period is allowed;
　(2)The maximum loan-to-appraised value ratio shall not exceed 60 percent.
　(3)The loan amount mentioned in the preceding subparagraph may not be increased for reasons 
　　of home renovation obtaining, working fund or for any other purposes.
　The conditions for housing loans extended by a financial institution to corporate body shall 
　be subject to the provisions set forth in the Subparagraphs of the preceding Paragraph.

4.The conditions for high-priced housing loans extended by a financial institution shall be 
　subject to the following restrictions:
　(1)No grace period is allowed;
　(2)The maximum amount of loan shall not exceed 60 percent of the house’s appraised value or
　　　its transaction price, whichever is lower.
　(3)The loan amount mentioned in the preceding subparagraph may not be increased for reasons 
　　 of home renovation obtaining, working fund or for any other purposes.

5. The conditions for land loan extended by a financial institution shall be subject
　 to the following restrictions:
　 (1) The financial institution may not accept land as security for a land loan if 
　　　 the borrower has not submitted a concrete construction plan for the land.
　 (2) The maximum amount of loan shall not exceed 65 percent of the land acquisition
　　　 cost or its appraised value, whichever is lower and 10 percent of the extended
　　　 loan shall not be disbursed until the borrower has commenced construction. 
　 (3) The loan amount mentioned in the preceding subparagraph may not be increased 
　　　 for reasons of working fund or other purposes.

　 The provision of holding 10 percent of the loan until the borrower has commenced
　 construction mentioned in Subparagraph 2 of the preceding Paragraph does not apply
　 to the following circumstances:
　 (1) The land is associated with an urban renewal project approved by the competent
　　　 authorities; or 
　 (2) The land is associated with a government or self-initiated land consolidation
　　　 project already approved by the competent authorities but not yet completed.

　 If the borrower who is not involved in investing or purchasing real estate or house 
　 construction applies for a land loan as working fund for regular business operation, such 
　 loan is not subject to the restrictions set out in Paragraph 1 hereof, provided the 
　 borrower  has submitted a concrete operational plan.

6.Financial institutions shall conduct the appraisal for home mortgage loans and land loans in
　accordance with its internal lending rules and the provisions set forth by the competent 
　authority.

7.Housing loans and land loans that have already been approved by the financial institutions 
　but not yet disbursed on or before December 30, 2010 may be processed according to the 
　original loan terms, without being subject to the restrictions under the Regulations. The 
　same provision applies to high-priced housing loans that have been approved by the financial 
　institutions but not yet disbursed on or before June 21, 2012.

8.Financial institutions shall file reports on their home mortgage loans and land loans books 
　periodically in accordance with the form set forth by the Bank.Financial institutions shall 
　set out internal risk control, operating procedures and other necessary internal rules for 
　their home mortgage loan and land loan business. If the lending criteria of a financial 
　institution according to its internal rules are stricter than these Regulations, the 
　financial institution shall extend loans in accordance with its internal rules.

9. The provisions in the preceding four Directions shall apply mutatis mutandis
　 to short-term notes and bills business of bills finance companies where the 
　 issued short-term note or bill is secured by land in the residential district
　 or the commercial district designated in urban planning.