TAIPEI (TVBS News) — Rising housing prices and inflation have driven 384,000 Taiwanese to juggle mortgage and personal loans, with each person carrying an average debt of NT$7.11 million, according to the latest data from the Joint Credit Information Center (JCIC, 聯徵中心). The number of dual-loan holders increased by 27,000 over the past year, reaching a record high.
Taiwan's mortgage holders, totaling over 2.2 million by October 2024, now represent nearly 10% of the population. Charlene Chang (張旭嵐), a section chief at Taiwan Realty Co (台灣房屋), noted that stagnant wages have led many to rely on personal loans to bridge financial gaps.
Chang highlighted that the loan restriction issued by the central bank in September 2024 significantly impacted this trend. Many prospective homeowners, facing inadequate loan amounts or lengthy waits, turned to personal loans to avoid defaulting.
Chang explained that dual-loan holders face monthly debt obligations of at least NT$30,000, assuming a salary of NT$50,000. This leaves just NT$20,000 for living expenses and savings, illustrating the immense financial pressure. She advised borrowers to carefully assess their repayment capacity, given the higher interest rates on personal loans. The central bank has mandated banks to scrutinize consumer loan flows to prevent their entry into the housing market, threatening loan cancellation and penalties for violations.
