New Youth Housing Loan Applications Surge in May Ahead of Policy Expiration

According to the latest statistics from the Ministry of Finance, the 'New Youth Housing Loan' program, scheduled to conclude at the end of July, saw a divergence in performance metrics for May 2026. The eight state-owned banks recorded NT$37.613 billion in new applications, a 16% monthly increase, while loan disbursements totaled NT$28.369 billion, a 14% monthly decrease.

In May, the program processed 4,371 new applications worth NT$37.613 billion, marking an increase of 491 cases and NT$5.175 billion compared to April, growth rates of approximately 13% and 16% respectively. These figures performed slightly better than the same period last year.

Conversely, loan disbursements showed a decline, with 3,549 cases totaling NT$28.369 billion, representing a 12% and 14% drop from April. These figures represent the lowest monthly levels this year, excluding the Lunar New Year period.

Regarding the performance of the eight state-owned banks, the Land Bank of Taiwan led in new applications with 869 cases, followed by Mega Bank (763) and Bank of Taiwan (707). For disbursements, the Bank of Taiwan topped the list with 654 cases, followed by the Land Bank of Taiwan (576) and Cooperative Bank (497).

Banking executives observe that as the policy approaches its July 31 expiration, prospective homebuyers are shifting toward a 'wait-and-see' approach. While owner-occupier demand continues to support the market, the overall outlook suggests a trend of stable volume and moderate price cooling as the policy transition approaches.