Ref. No：2007.11.13 Tai-Yang-Ye-Tze No. 0960049430
The following Explanations respond to your letter inquiring whether a borrower under the Preferential Housing Loan Program may apply for extending the maximum amortization period to 30 years due to adverse financial conditions. Please forward the same to all lending financial institutions.
1.This is in response to your letter dated September 28, 2007 (Ref. No. Zong-Ge-Zheng-Fang- Zi-0960036371) and is based on the letter from the Banking Bureau, Financial Supervisory Council, Executive Yuan, dated October 29, 2007 (Ref. No. Yin- Ju -(2)- Zi -09600464700) and the letter from the Construction and Planning Agency, Ministry of the Interior, dated October 18, 2007 (Ref. No. Ying-Shu- Zhai-Zi-0960055977).
2.The CBC concurs in principle with the issue. Please proceed in accordance with the following principles:
(1)The CBC shall concur if a lending bank approves the application of a borrower under the Government Preferential Housing Loan Program for extension of amortization period due to adverse financial conditions. Treasury subsidies on related interest shall apply in accordance with monthly loan balances from the date of approval. The maximum amortization period in this instance no more than 30 years, and the maximum period for interest subsidy shall remain 20 years.
(2)It is estimated that, if loan terms under the Program are extended as prescribed above, the average interest subsidy to each borrower will be an additional NT$ 30,000. In view of this added cost to the government, applicants are required to submit a certificate of poverty issued by respective village or district head, and a statement of income and expenses. Lending institutions shall review such documents.