The average term of Taiwan’s mortgage loans hits a new high: 30-year terms have become the mainstream in the market, and first-time homebuyers may have to pay until they are nearly 60 years old

Buy a house at the age of 30 and pay until you are nearly 60! The latest data from the Ministry of the Interior shows that the average number of new mortgage loans in the first quarter of this year reached 322, about 26.8 years, a new high, 6.6 years longer than 10 years ago. 30-year mortgages have become the mainstream of the market.

According to the latest data from the real estate information platform of the Ministry of Interior, the national average number of new mortgage loans in the first quarter of this year reached 322, a slight increase of 1 from the previous quarter and setting a new record. It is also 6.6 years longer than 10 years ago, reflecting that 30-year mortgages have become the mainstream loan product in the market.

Statistics show that among the new housing loans in the six metropolitan areas plus Hsinchu in the first quarter of this year, the lowest in the North City is 315 for about 26.3 years, and the remaining loan periods are 27 to 28 years. Compared with 10 years ago, the average housing loan period is about 7 years longer. For first-time homebuyers who buy a house at the age of 30 to 35, if they do not pay off the loan in advance or sell the house, they may have to pay until they are nearly 60 years old.

Among the major metropolitan areas, Hsinchu County has the longest mortgage terms. There are 343 mortgage terms in Hsinchu City and 341 mortgage terms in Hsinchu County, with an average of about 28 years. This is mainly because the Hsinchu area has many park customers, the houses are new and the park customers have higher incomes, and banks are willing to lend.

Zeng Jingde, project manager of Xinyi Housing Real Estate Enterprise Research Office, said that in the third quarter of 2015, the national average number of mortgage loans exceeded 240, which lasted about 20 years, and began to gradually rise. In the third quarter of 2023, Xinqingan will hit the road and the average will exceed 300, which lasts about 25 years. In addition to 30-year mortgages, Xinqingan also provides 4 0-year mortgages are available, and the average mortgage term is now 26.8 years. The proportion of people using 30-year mortgages should have exceeded 20-year mortgages. In addition to rising housing prices, people are taking long-term mortgages to reduce their monthly repayment burden. Banks are also willing to underwrite loans and grant conditions similar to 20-year mortgages, which is also one of the growth factors.

Zeng Jingde said that a 30-year mortgage is an option, but it does not mean that it must be fully paid in 30 years. People can plan their own funds. If they are more experienced in investing, they can save money and invest first. If they are extremely conservative, they can also repay in advance if they have extra income. If they save 2.5% interest, they can reduce their expenses every month. Repaying in advance is also a risk-free investment method.