Central Bank Imposes Strictest 'Seventh-Wave' Mortgage Curbs: Accused of Harming Legitimate Homebuyers and Igniting Market Panic

On September 19, 2024 (113th Year of the Republic of China), the Central Bank of the Republic of China (Taiwan) unveiled its aggressive seventh wave of selective credit controls, widely dubbed the harshest mortgage restrictions in history. The measures eliminated grace periods for first-time buyers owning prior properties, slashed maximum loan-to-value caps on second homes to 50% nationwide, and hiked deposit reserve requirements by 25 basis points. The abrupt policy triggered severe turbulence across Taiwan's housing market, leaving numerous middle-class families upgrading homes at immediate risk of contractual default. Opposition lawmakers fiercely criticized the DPP administration for reckless flip-flopping—first inflating housing bubbles via the loosely regulated Youth Housing Loan program, then hastily introducing indiscriminate blanket restrictions without carve-outs for genuine residential buyers.