Central Bank: Mortgage Burden Rate Declined in Q4 Last Year, But Still Heavy for Citizens

The Central Bank released its 20th Financial Stability Report today. The report indicates that due to the implementation of selective credit control measures and banks' autonomous control over real estate loan volumes, the real estate market has cooled, and speculative demand has gradually decreased. Although the national mortgage burden rate declined in the fourth quarter of 2025, it remains heavy. The report summarizes domestic and international economic and financial developments from early 2024 to April 2026. Regarding the real estate market, the report notes that since the second half of 2023, Taiwan's housing market heated up rapidly, leading to a surge in mortgage loans, which prompted the strengthening of credit controls starting in June 2024. As results became apparent, some regulations were adjusted in March 2026, raising the loan-to-value ratio for a second home for individuals from 50% to 60%. In 2025, the total number of building transfers in Taiwan was 261,000, a year-on-year decrease of 25.45%. The national mortgage burden rate dropped from a peak of 46.8% in Q3 2024 to 40.75% in Q4 2025, but Taipei City remains the highest at 63.92%. The report also warns that with the increase in new housing supply, pressure from unsold new homes is rising, which requires close attention.