2023-09-22 02:36:07
House prices are high and mortgage payment periods are getting longer. Compare mortgage terms around the world! Xin Chuan Real Estate Think Tank has compiled statistics on the mortgage life of 15 major countries around the world. In more than half of the countries, the mortgage life is between 40 and 50 years. Taiwan’s 40-year loan life ranks seventh in the world. Compared with Japan and South Korea, which have 50 years, it is not high, and even Sweden There is also a loan repayment period of up to 105 years. When buying a house, the loan can be passed down from generation to generation, with the next generation inheriting the property and debt.
Taiwan ranks middle in the world in terms of mortgage loan tenure! Mortgage loans in this country can be paid for 105 years.Real estate market diagram/provided by real estate agency
Inflation has surged in recent years, but the issue of housing justice has also become a hot issue. Affected by the different policies and attitudes of governments in various countries, the mortgage loan period has been loosened and tightened. Among them, the United Kingdom and South Korea have relaxed the housing loan period, but France and Canada have tightened the mortgage period. .
He Shichang, CEO of Xin Chuan Real Estate Think Tank, said that Taiwan’s current mortgage loan term limit is 40 years, which is in the middle range among countries around the world and is not too strict or loose; although relaxing the mortgage term can reduce the monthly repayment pressure of home buyers, it will It will be easier for people to buy houses, but it may also stimulate an increase in housing prices. Regardless of whether the policy needs to be relaxed or tightened, careful planning is needed to avoid falling into a contradictory situation of hitting the target while ignoring the rescue.
Comparison of mortgage loan terms in major countries around the world.Picture/Provided by Xinchuan Real Estate
This country is super strict and says goodbye to 30-year mortgages
Among the major countries in the world, Sweden has the longest mortgage term of 105 years. The main reason is that many Swedish mortgage loan users are accustomed to “repaying only interest and not principal.” In March 2016, the Swedish Parliament amended the law to reduce the mortgage loan period to 105 years, but the loan period is still surprisingly long.
France and Canada are also limiting mortgage terms. Because French mortgage interest rates are relatively low and household loan balances continue to rise, France will amend banking regulations in 2022. Starting from 2023, the mortgage loan limit for all French banks will be increased from the original 30 years. It has been reduced to 25 years, making it the country with the shortest mortgage term. However, since France provides 20% to 40% down payment subsidies for first-time homebuyers, the impact of reducing mortgage loans will be limited. In addition, Canada has reduced the mortgage loan limit from 40 years to 35 years.
These countries have realized the spread of true loans from generation to generation
The mortgage terms for HDB and private homes in Singapore are different. The mortgage term for HDB is 30 years, while for private homes, it can be up to 35 years. Although Japan and South Korea both have 50-year mortgages, their origins are quite different. In order to help first-time homebuyers buy a house and save the housing market, the South Korean government has extended the mortgage term from 40 years to 50 years since July this year, and made it available to first-time homebuyers. Major banks have seen an explosion in loan applications.
In Japan, in the 1990s, several banks already offered 100-year mortgage plans, but this seems to be no longer the case, with the longest mortgage term remaining being 50 years. Despite this, the UK was inspired by Japan’s century-old mortgage and launched a 50-year mortgage plan for the first time in 2022.
He Shichang explained that there are currently two different mechanisms for mortgage plans with a term of 50 years and above in the world. The first one is the “one-generation system”, which is the most common. The mortgage must be repaid within one generation, so there are often application age restrictions and the latest repayment age. Usually ranges from 75 to 85 years old. The second type is the “multi-generation system”, such as Japan’s 100-year mortgage, the UK’s 50-year mortgage and other plans. Mortgage owners can transfer their debts to the next generation, and the next generation will inherit the property and property through the “intergenerational loan” model. debt.
He Shichang pointed out that compared with other countries, Taiwan’s mortgage loan period of 40 years is not too long and is still within a reasonable level. Although extending the mortgage term will increase the overall interest burden, a 40-year loan does not mean that the loan must be repaid for 40 years. Mortgage owners can pay off the loan in advance when they save money or resell the house. Furthermore, extending the mortgage term can lower the monthly repayment amount and reduce the possibility of mortgage loan defaulters due to non-payment. It can be said that the advantages outweigh the disadvantages.
Yahoo Finance special correspondent Ye Yiru: 22 years of experience in mainstream financial media. From the Web1.0 bubble in 2000 to the Meta Yuanverse Web3.0, he has witnessed the rise and fall of Taiwan’s large and small enterprise groups and has experienced five international financial crises. We believe that finance is life and is everywhere. No matter how difficult financial knowledge is, we should explain it in a simple way. Everyone, young and old, should manage money. If you don’t manage money, money will not care regarding you.
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