Ref. No：2008.12.24 Tai-Yang-Ye-Tze No. 0970060879
The maximum amortization period under the NT$ 150 billion Government Preferrential Home Owner Loan Program (the “Program”), available to the public since 1999 through the allocation of postal savings redeposits by the Central Bank of the Republic of China (Taiwan), is hereby extended to thirty years due to current adverse financial conditions. Please forward this Letter to all lending banks under the Program.
1. This Letter refers to the letter from the Construction and Planning Agency, Ministry of the Interior Ref. No. Ying-Shu-Zhai-Zi-No.0970077588 dated December 17, 2008.
2. In case a bank approves a borrower’s application for extending the maximum amortization period due to financial predicament, the Bank shall concur and the treasury subsidies shall apply based on the monthly loan balance from the date of approval. While the maximum amortization period may be extended up to 30 years, the maximum subsidised period remains 20 years. Upon the expiration of the maximum 20-year subsidised period, the funding of the borrower’s outstanding balance shall be financed by the lending bank, and the interest on the balance shall be calculated in accordance with the lending rate (i.e. the floating rate on one-year time deposits of the Chunghwa Post Co. plus 1%) prescribed in these Financing Directions under the Program. Lending banks are advised to clearly explain the relevant provisions to borrowers under the Program.
3. It is estimated that, if amortization period under the Program are extended as prescribed above, the average interest subsidy to each borrower for the remaining 12 years will be an additional NT$ 50,000. In view of this additional cost to the government, applicants are required to submit a certificate of poverty issued by respective village head, or other governmental document sufficient to prove their financial predicament (e.g. certificates of low-income or received subsidies for low and middle income). Lending banks shall review such documents.