First Bank Supports New Green An 3.0! Over 50% of Loan Applicants 'Don't Need Grace Period' as Housing Market Expected to Return to Essential Demand

As the new Green An 3.0 loan scheme is set to officially launch on August 1, public banks have expressed full support. First Bank (2892-TW) has given a positive response, believing that the 'wealth exclusion mechanism' and 'marriage and childbirth bonus' added in the 3.0 scheme can ensure that government resources are accurately targeted at truly needy young groups. The 'landing' design, where interest subsidies gradually decrease after three years, is also reasonable and can effectively prevent the unlimited expansion of subsidy resources. Currently, over half of the applicants for Green An loans at First Bank have not used the grace period, with only 20.9% utilizing the maximum 5-year grace period.

According to First Bank's latest statistics, as of June 30 this year, the outstanding balance of First Bank's Green An loans has reached 1,356 billion yen. Regarding market concerns about the potential credit expansion due to the grace period, the bank explained that, based on the current data structure, the proportion of Green An loan applicants who chose 'no grace period' is as high as 51.69%, while only 20.9% applied for the maximum 5-year grace period. This indicates that over half of the borrowers have relatively stable repayment plans and are not merely relying on preferential policies to enter the market.

Regarding the execution details of the scheme transition, First Bank stated that the applicability of the new Green An depends on the customer's 'application date' before or after July 31. If a customer had previously submitted an application but now wishes to switch to the higher loan amount of the new Green An 3.0 scheme, they can choose to withdraw the application and reapply on or after August 1. However, First Bank observed that, based on the current status of applications within the bank, there are not many cases where applicants delay their applications to apply for the 3.0 version.

Looking ahead to the second half of the year, First Bank believes that the housing market will return to 'essential demand.' Although the number of building transfers appears to have increased recently, this is mainly driven by the gradual handover of pre-sold houses. Given that the new Green An 3.0 includes age (under 50), income (personal annual income below 2 million yen), and housing price restrictions, and the central bank's credit control has not been relaxed, it is expected that housing market fluctuations will stabilize, allowing self-occupiers to obtain housing at an appropriate cost.