Realtor: Mortgage Collection Amounts Rise as Grace Periods for Youth Loans End
Taiwan Realty indicates that as the grace periods for the 'New Youth An-Shin' preferential mortgage program successively expire, mortgage collection amounts are significantly increasing. According to data from the Real Estate Information Platform, as of Q3 2025, the nationwide residential mortgage collection amount reached NT$6.776 billion, a 29.3% year-on-year increase. Experts analyze that this phenomenon primarily reflects the difficulties faced by some highly leveraged and financially tighter homebuyers from the recent property boom, who are now grappling with interest rates and repayment pressures. Among cities, Taipei has the highest total collection amount, while Taichung and Taoyuan show the most significant annual growth, signaling emerging market risks in rapidly developing areas.
📋 Article Processing Timeline
- 📰 Published: May 19, 2026 at 16:24
- 🔍 Collected: May 19, 2026 at 16:31 (7 min after Published)
- 🤖 AI Analyzed: May 19, 2026 at 23:31 (6h 59m after Collected)
(CNA, Reporter Ho Hsiu-ling, Taipei, 19th) Taiwan Realty stated that since the launch of the New Youth An-Shin housing loan, grace periods have been successively expiring. According to data from the Real Estate Information Platform, as of the third quarter of 2025, the national loan default rate was 0.08%. Observing the changes in residential mortgage collection amounts, the figure for the third quarter of 2025 was NT$6.776 billion, a 29.3% year-on-year increase, indicating that the amount of overdue mortgages moving into collection has risen compared to previous years.
Chang Hsu-lan, CEO of the Trend Center at Taiwan Realty Group, stated via a press release today that "non-performing loans" refer to principal and interest arrears exceeding three months; if not cleared after six months, they are transferred to "collections." In recent years, mortgage collection amounts began to climb noticeably from the fourth quarter of 2024, reflecting that some homebuyers with tighter financial conditions who entered the market with high leverage during the purchasing boom of previous years are indeed more likely to face repayment pressure after increases in grace periods, interest rates, and financial stress.
She said that collection amounts peaked in the second quarter of 2025 and only began to decline in the third quarter, showing that after credit controls and a market cooldown in the fourth quarter of 2024, high-leverage transactions have gradually decreased, slightly curbing market risk.
Further observation of the latest data from the third quarter of 2025 shows that the city with the highest collection amount was Taipei City at NT$1.88 billion, followed by New Taipei City at NT$1.513 billion. The highest year-on-year growth was in Taichung City at 43.8%, followed by Taoyuan City at 38.7%.
Chen Ting-chung, a senior manager at Taiwan Realty Group's Trend Center, pointed out that Taichung and Taoyuan have attracted a large number of first-time buyers and investment demand in recent years due to large-scale projects in redevelopment zones. During the period of rapid market heating, many homebuyers entered with high loan-to-value ratios and high leverage, or purchased multiple properties at once. However, as mortgage conditions tightened and capital costs rose, market transactions slowed, and some groups with weaker financial capacity began to face greater payment pressure.
Chang Hsu-lan reminded that long-term mortgage delinquency not only incurs late fees and interest but also leaves a record on one's credit report with the Joint Credit Information Center, which could affect future loan and credit card applications. If the situation does not improve after bank collection efforts, it could lead to compulsory execution and foreclosure proceedings. Foreclosure prices are typically lower than general market values, posing a higher risk of asset loss for homeowners. Therefore, if financial pressure arises, one should negotiate with the bank early to avoid dual damage to credit and assets. (Editor: Chang Liang-chih) 1150519
Chang Hsu-lan, CEO of the Trend Center at Taiwan Realty Group, stated via a press release today that "non-performing loans" refer to principal and interest arrears exceeding three months; if not cleared after six months, they are transferred to "collections." In recent years, mortgage collection amounts began to climb noticeably from the fourth quarter of 2024, reflecting that some homebuyers with tighter financial conditions who entered the market with high leverage during the purchasing boom of previous years are indeed more likely to face repayment pressure after increases in grace periods, interest rates, and financial stress.
She said that collection amounts peaked in the second quarter of 2025 and only began to decline in the third quarter, showing that after credit controls and a market cooldown in the fourth quarter of 2024, high-leverage transactions have gradually decreased, slightly curbing market risk.
Further observation of the latest data from the third quarter of 2025 shows that the city with the highest collection amount was Taipei City at NT$1.88 billion, followed by New Taipei City at NT$1.513 billion. The highest year-on-year growth was in Taichung City at 43.8%, followed by Taoyuan City at 38.7%.
Chen Ting-chung, a senior manager at Taiwan Realty Group's Trend Center, pointed out that Taichung and Taoyuan have attracted a large number of first-time buyers and investment demand in recent years due to large-scale projects in redevelopment zones. During the period of rapid market heating, many homebuyers entered with high loan-to-value ratios and high leverage, or purchased multiple properties at once. However, as mortgage conditions tightened and capital costs rose, market transactions slowed, and some groups with weaker financial capacity began to face greater payment pressure.
Chang Hsu-lan reminded that long-term mortgage delinquency not only incurs late fees and interest but also leaves a record on one's credit report with the Joint Credit Information Center, which could affect future loan and credit card applications. If the situation does not improve after bank collection efforts, it could lead to compulsory execution and foreclosure proceedings. Foreclosure prices are typically lower than general market values, posing a higher risk of asset loss for homeowners. Therefore, if financial pressure arises, one should negotiate with the bank early to avoid dual damage to credit and assets. (Editor: Chang Liang-chih) 1150519