What is the First-Home Peace-of-Mind Loan
The "Youth Peace-of-Mind Home Purchase Preferential Loan" — known in Taiwan as 青安房貸, the First-Home Peace-of-Mind Loan (青安房貸) — is a first-time buyer preferential mortgage led by the Ministry of Finance and jointly offered by state-owned banks (Bank of Taiwan, Land Bank, Taiwan Cooperative Bank, Hua Nan, First Bank, Chang Hwa, Mega, Taiwan Business Bank, SMEG, Post Office, etc.).
Core advantages: lower-than-market interest rate, higher loan amount, longer term.
As of August 2024, the program was upgraded to "Peace-of-Mind Loan 2.0" with looser conditions and higher ceilings.
Key 2024 Peace-of-Mind 2.0 terms
Eligibility
- Borrower at least 18 years old
- Borrower, spouse, and minor children own no property (verified via National Taxation Bureau asset records)
- One loan per household (including spouse)
Loan amount
- Up to NT$10 million (up from NT$8 million)
- Loan-to-value up to 90% (up from 80%)
- No price cap on the property (but must pass bank appraisal)
Term
- Up to 40 years (up from 30)
- Includes a 5-year grace period (寬限期) (up from 3)
Interest rate
- First 2 years: Chunghwa Post 1-year fixed deposit rate − 0.5% (from August 2024)
- Year 3 onward: Chunghwa Post 1-year floating deposit rate + 0.345% onward
In Q4 2024 this worked out to roughly 1.775%–1.875%, clearly below market rates of 2.1–2.5%.
Payment structure
- Equal principal and interest
- Or equal interest then equalized principal
- Or three-stage flexible payment by personal choice
Peace-of-Mind vs conventional mortgage
| Item | Peace-of-Mind 2.0 | Conventional first-time mortgage |
|---|---|---|
| Rate | 1.775–1.875% | 2.1–2.5% |
| LTV | Up to 90% | 80% |
| Term | 40 years | 30 years |
| Grace period | 5 years | 3 years |
| Max loan | NT$10M | Depends on price |
A 0.3% rate difference sounds small, but over 20 years it adds up:
- NT$8M loan, 20 years:
- 2.1%: total interest ≈ NT$1,780,000
- 1.8%: total interest ≈ NT$1,500,000
- Difference: NT$280,000
Who should use it
- First-time buyers (if eligible, this is the default choice)
- Single- or dual-income households, property price NT$10M–25M
- Need higher LTV (insufficient down payment otherwise)
- Want to stretch the payment term (young couples, early career)
Limitations
1. Strict first-time requirement
Borrower + spouse + minor children must not own any property. If you previously owned and sold, the cutoff is usually your application date.
2. The 40-year term caveat
- The extended term means the absolute total interest is higher than a 30-year loan
- Monthly payment is lower, reducing pressure
- Does not mean "paid off before retirement" — you may still owe after retirement
3. The 5-year grace period trap
During the grace period, you pay only interest and the principal doesn't shrink. After 5 years, the principal payment kicks in and monthly payments jump significantly.
Example: NT$8M loan, 1.8%, 40-year term (5 years grace):
- During grace: NT$12,000/month (interest only)
- After grace (35 years amortization): about NT$26,000/month
The grace period eases early pressure but doesn't build equity. If your finances are flexible in the first 5 years, the grace period is pointless; if those years are especially tight (e.g., raising young children), it can be a lifesaver.
4. Approval still depends on bank review
Even though the program caps at 90%, actual approval depends on:
- Appraisal (banks estimate on their own, often below sale price)
- Income proof (yours and your spouse's combined)
- Occupation, credit history, debt-to-income ratio
No guarantee of the full 90%. Our Mortgage Calculator can model your actual down payment requirement when the appraisal comes in low.
How to apply
Required documents
- National ID, household registration (must include borrower, spouse, minor children)
- National Taxation Bureau asset list (proving first-time status)
- Employment and salary proof for borrower and spouse
- Home purchase contract (pre-approval at signing stage, formal application after closing)
Process
- Negotiate the property with an agent or scrivener
- Contact state-owned bank (Bank of Taiwan, Land Bank, etc.) windows
- Bank conducts appraisal + credit check
- On approval, mortgage is registered
- Funds disburse, closing proceeds
Takes 2–4 weeks; leave a buffer.
Interaction with current central bank credit controls
To cool the property market, the central bank credit controls (央行信用管制) cap LTV at 70% on second and subsequent homes. The Peace-of-Mind loan is first-time only and isn't subject to this limit.
Further notes:
- Same registered household's first home → eligible for Peace-of-Mind
- If you live with parents who own a property → you may need to split the household registration or prove co-ownership is non-blocking
Tool pairing
Use the Mortgage Calculator to input:
- Sale price (the price you plan to pay)
- LTV (assume 90%)
- Rate 1.8%
- Term 40 years
- Grace period 5 years
Check whether the monthly payment sits inside your affordability range.
Official sources
- Ministry of Finance (財政部) — Peace-of-Mind loan policy, eligibility, rate announcements
- Central Bank (中央銀行) — credit controls, mortgage LTV rules
- MOI Real Estate Information Platform (內政部不動產資訊平台) — actual transaction prices, public land value lookup
- Ministry of the Interior (內政部) — housing policy
- Bank of Taiwan (臺灣銀行), Land Bank (土地銀行), Hua Nan Bank (華南銀行), and other state-owned banks — apply for Peace-of-Mind loans
Disclaimer
Peace-of-Mind loan terms may change annually; actual conditions are governed by the current announcements of state-owned banks. This article reflects Peace-of-Mind 2.0 as of August 2024. Before applying, compare offers from multiple banks.