Will the Launch of Qing'an 3.0 Push Up Housing Prices? Explaining the New System's Wealth Exclusion and Loan Conditions: 'Divorce' Requires Repayment of Interest Subsidies

The 'New Qing'an Loan' (Qing'an 2.0), launched in 2023, will sunset in July 2026. Last week, Taiwan's Executive Yuan approved the 'Qing'an 3.0' plan, set to officially launch on August 1, 2026, and run until July 31, 2029. The new program introduces stricter loan conditions, including applicants being under 50 years old and property price caps estimated between NT$20 million and NT$35 million, while simultaneously raising loan limits for married and parenting families. Financial influencer Ashun analyzed the Qing'an 3.0 reforms on his finance-focused Facebook page on the 23rd, stating that the previous Qing'an policy was one of the main drivers behind rising housing prices, and ultimately, the intended beneficiaries have become 'victims'.

Did the Qing'an Loan Inflate Housing Prices? What Changes Does Qing'an 3.0 Bring?

Looking back at past housing market policies, the government introduced the 'Youth安心 Homeownership Loan' (Qing'an 1.0) at the end of 2010. In response to inflation and rising home prices, the 'Qing'an Loan Enhancement Plan' (Qing'an 2.0) was launched in August 2023, originally scheduled to run until July 31, 2026. To assist first-time and self-occupant homebuyers, the maximum loan amount was raised from NT$8 million to NT$10 million, the loan term extended to 40 years, the grace period to 5 years, and interest subsidies were provided. The launch of Qing'an 2.0 triggered a surge in loan applications but also sparked controversy over fueling housing prices and misuse by investors. On July 16, 2026, the Executive Yuan officially approved 'Qing'an 3.0', introducing five major new loan conditions:

- Applicants must be under 50 years old at the time of application - The sum of 'applicant's age + loan term' must not exceed 80 years - A wealth-exclusion mechanism is added: the borrower's annual income must not exceed NT$2 million - A property price cap is set: NT$35 million in Taipei City, NT$25 million in New Taipei City and Hsinchu County/City, and NT$20 million in other counties and cities - Enhanced incentives for marriage and parenting: newlywed families and families with minor children can increase their loan limit to a maximum of NT$15 million - Interest subsidies will adopt a '3+3' model, applicable to both new and existing Qing'an loan borrowers: the first 3 years remain fully subsidized, and the next 3 years will be gradually phased out

Property Price Caps for Marriage and Parenting Loans? Must Repay Interest Subsidies if Divorced?

Ashun pointed out that the significantly revised Qing'an 3.0 features three major changes. First, substantial incentives for marriage and parenting families: loan limits are increased based on family status. While single individuals and general first-time buyers remain capped at NT$10 million, newlywed and parenting families can borrow up to NT$12 million to NT$15 million, and 'divorce' will legally require repayment of interest subsidies. Second, interest subsidies will adopt a flat rate of 1.775%, with the subsidy period extended up to 7 years but implemented through a 'step-down phase-out' mechanism in the latter years. Third, three new 'wealth-exclusion constraints' are introduced to avoid repeating the criticism that the previous Qing'an was a 'tool for speculators to flip houses'. These include:

- Annual income cap for applicants: NT$2 million - Tiered property price caps: - Taipei City: maximum property price capped at NT$35 million - New Taipei City, Hsinchu County/City: maximum property price capped at NT$25 million - Other counties and cities (central/southern Taiwan and the remaining six special municipalities): maximum property price capped at NT$20 million

Additionally, the new system is considering introducing an '80 clause', meaning that if applicants are over 40 years old, they cannot qualify for a full 40-year mortgage.

Will Qing'an 3.0 Stimulate Housing Prices? The Financial Environment Has Changed Significantly

Regarding whether the new policy will push housing prices higher, Ashun analyzed that the new system is more inclined to 'cap' prices, making it difficult to drive further price increases. Property price caps, especially the restriction that properties over NT$20 million outside of Taipei and New Taipei cannot enjoy low interest rates, may create a 'pricing anchor effect', pushing developers to price below the cap. He further stated that the new system raises barriers for singles and first-time buyers. With the disappearance of a large pool of 'single buyers taking 40-year mortgages', housing demand momentum will be significantly reduced. Lastly, with Taiwan's stock market correcting from highs and the central bank tightening monetary policy, the market lacks the 'frenzied capital waves' that previously fueled housing booms. Under these different conditions, housing prices lack the fuel for another major surge.