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, unsold housing 
　　　　unit loans and idle industrial land mortgage loans.
　 (3)“Housing loans” shall include high-value housing loans and home loans.
　 (4)“High-value 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-value 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)“Idle industrial land mortgage loans” shall mean mortgage loans extended by 
　　　　financial institutions to borrowers and secured by idle land in industrial 
　　　　districts.
　 (9)“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. 
　 (10)“Newly built unsold housing units (including the allotted land)” shall mean 
　　　　 houses (including the allotted land) built less than five years ago and 
　　　　 maintaining the first registration of building ownership. 
　 (11) “Idle industrial land” shall mean land listed on the Announced Inventory 
　　　　 of Idle Land in Industrial Parks under the Jurisdiction of the Ministry of 
　　　　 Economic Affairs as inquired by financial institutions of the Joint Credit 
　　　　 Information Center (“JCIC”). 
　 (12) “Specific areas” shall include Taipei City, New Taipei City, Taoyuan City,
　　　　 Taichung City, Tainan City, Kaohsiung City, Hsinchu County, and Hsinchu City. 
　 (13)“Borrowers” shall mean natural persons or corporations.

3.Housing loans extended by a financial institution to a corporation shall be subject
　to the following restrictions:
　(1) No grace period.
　(2) The maximum loan amount may not exceed 40 percent of the appraised value or 
　　　purchase price of the house (including the allotted land), whichever is lower.　　　
　(3) The loan amount in the preceding Subparagraph may not be increased by reason of 
　　　home renovation, working funds, or other purposes.

4.Housing loans extended by a financial institution to natural persons shall be 
　subject to the following provisions:
(1)High-value housing loans: The  restrictions set forth in the Subparagraphs of the 
　 preceding Article shall apply.
(2)Home loans: The financial institution shall inquire the JCIC about the applicant’s
　 current status of housing loan history to determine whether the applicant has any 　 
　 outstanding secured loan backed by a house (including the allotted land) as 
　 collateral and of  which the purpose is classified as “1” (for real estate 
　 purchases) , and the new home loan shall be subject to the following restrictions:
　 a. For a natural person who already has one housing loan: Subparagraph 1 of the 
　　　preceding Article shall apply to a home loan for purchasing a house located in a 
　　　specific area.
　 b. For a natural person who already has two housing loans or more: Subparagraphs 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 
　　　and undertake that construction will commence within a specific time frame.
　 (2)The maximum loan amount may not exceed 50 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 unsold housing unit loans extended by financial 
　institutions may not exceed 40 percent of the appraised value of the housing unit.
　The loan amount in the preceding Paragraph may not be increased by reason of 
　working funds or other purposes.

7.For idle industrial land mortgage loans extended by financial institutions, 
　the maximum loan amount may not exceed 40 percent of the appraised value of the 
　land . 
　The loan amount in the preceding Paragraph may not be increased by reason of working
　funds or other purposes.
　The provisions of the two preceding Paragraphs do not apply if an idle industrial 
　land mortgage  loan has any of the following conditions:
　(1)The construction and/or development of the mortgaged land has begun. 
　(2)The borrower has submitted a substantive plan for construction and/or development 
　　 for the mortgaged land and has undertaken that construction and/or development
　　 will begin within one year.

8. These Regulations do not apply to mortgage loans extended by financial 
　 institutionsfor 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.

9. 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.

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.

11.For mortgage loans that have been processed but not yet disbursed before the 
　 amendment to these Regulations takes effect on December 17, 2021, the 
　 provisions prevailing at the time the loan application is processed shall apply.