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

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

2. The terms used in the Regulations shall be defined as follows:
　 (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) “Mortgage loans” shall include housing loans, land loans and unsold housing 
　　　 unit loans.
　 (3) “Housing loans” shall include high-priced housing loans and home loans.
　 (4) “High-priced housing loans” shall mean mortgage loans extended by financial 
　　　　institutions to  borrowers for purchasing houses (including the allotted land) 
　　　　of any of the following types where the building ownership certificates 
　　　　thereof contains the word zhu (住, “residential”):
　　 a. Located in Taipei City with an appraised value or purchase price of NT$70 
　　　　million or more;
　　 b. Located in New Taipei City with an appraised value or purchase price of NT$60 
　　　　million or more; or
　　 c. Located in a domestic area other than Taipei City and New Taipei City with an 
　　　　appraised value or purchase price of NT$40 million or more.
　 (5)“Home loans” shall mean mortgage loans extended by financial institutions to  
　　　 borrowers for purchasing non-high-priced houses (including the allotted land) 
　　　 where the building ownership certificates thereof contain word zhu
　　　 (住, “residential”).
　 (6)“Land loans” shall mean mortgage loans extended by financial institutions to 
　　　 borrowers    for purchasing land lots in a residential or commercial district 
　　　 demarcated in urban plans.
　 (7)“Unsold housing unit loans” shall mean mortgage loans extended by financial 
　　　 institutions to  developers and secured by newly built unsold housing units 
　　　 (land allotments included). 
　 (8) Developers” shall mean entities engaging in real estate development 
　　　 activities, namely the investment and construction of real estate including 
　　　 land, buildings,and other structures, for sale purposes; or entities engaging 
　　　 in the construction of residential buildings in the building construction 
　　　 industry. 
　 (9)“Newly built unsold housing units (land allotments included)” shall mean 
　　　　houses (including the allotted land) built less than five years ago and 
　　　　maintaining the first registration of building ownership. 
　 (10)“Borrower” shall mean a natural person or a corporation.

3. When a financial institution processes the application of a corporation for a 
　 housing loan, it shall enquire the Joint Credit Information Center (JCIC)  about 
　 the applicant’s housing loan records. A housing loan of which the applying 
　 corporation has no secured loans backed by a house (including the allotted land) 
　 as collateral and of which the purpose is classified as “1” (for real estate 
　 purchases) shall be subject to the following restrictions:
　(1) No grace period;
　(2) The maximum loan amount may not exceed 60 percent of the appraised value or
　　　purchase price of the house (including the allotted land), whichever is lower; 
　　　and
　(3) The loan amount in the preceding Subparagraph may not be increased by reason of 
　　　home renovation, working funds, or other purposes. 
　 For a corporation that has more than one housing loan, Subparagraphs 1 and 3 of 
　 the preceding Paragraph shall apply, and the maximum loan amount may not exceed 50 
　 percent of the appraised value  or purchase price of the house (including the 
　 allotted land), whichever is lower.

4. Housing loans extended by a financial institution to natural persons shall be
　 subject to the following restrictions:
　(1) High-priced housing loans: The provisions of Paragraph 1 of the preceding 
　　　Article shall apply.
　(2) Home loans: The financial institution shall enquire the JCIC about the 
　　　applicant’s housing loan records. In extending a home loan to an applying
　　　natural person who has more than two housing loans,  Paragraph 1 of the 
　　　preceding Article shall apply.

5. Land loans extended by a financial institution shall be subject to the following 
　 restrictions:
　(1) The borrower shall submit a substantive development plan for the land 
　　　purchased.
　(2) The maximum loan amount may not exceed 65 percent of the acquisition cost or
　　　appraised value of the land, whichever is lower. 10 percent of the loan may not
　　　be disbursed until construction begins.
　(3) The loan amount in the preceding Subparagraph may not be increased by reason of 
　　　working funds or other purposes.

6. The maximum amount of an unsold housing unit loan extended by a financial 
　 institution may not exceed 50 percent of the appraised value of the housing unit.

7. These Regulations do not apply to mortgage loans extended by financial 
　 institutions for reconstruction projects developed pursuant to the Urban Renewal 
　 Act, the Statute for Expediting Reconstruction of Urban Unsafe and Old Buildings, 
　 or in accordance with government policies.

8. A financial institution shall conduct the appraisal for mortgage loans in 
　 accordance with its internal lending rules and provisions set forth by the 
　 competent authority.
　 When a financial institution processes an application for the transfer or term
　 extension of a loan stated in the preceding Paragraph, the loan amount may not
　 be increased through reappraisal.

9. For mortgage loans that have been approved but not yet disbursed on or before
　 December 7, 2020, the original terms and conditions of the loans shall apply,
　 provided they comply with the provisions prevailing at the time of approval.

10. A financial institution shall file reports on its mortgage loans periodically 
　　in the format set up by the Central Bank of the Republic of China (Taiwan).
　　A financial institution shall set up internal risk controls, operating 
　　procedures,and other necessary internal rules for conducting mortgage loan 
　　businesses. If the lending criteria under the financial institution’s internal 
　　rules are stricter than the Regulations, the internal rules shall prevail.