I know this topic has been discussed at some length on this forum, but while I’ve been conducting my research I’ve found much of it to be outdated/wrong.
I’m appealing to someone who knows specifics on this topic … which banks? surety required? at what rate? is a 100% loan possible, or does one need a deposit? What salary would be required for a loan of 5 mil?
Any feedback would be greatly appreciated…
sorry … foreigners :s
Just a quick update here.
I’ve so far contacted Far Eastern International Bank and they do give loans to foreigners. I will need my girlfriend to co-sign the loan and they can only give an 80% loan (i.e. 20% deposit). The other details are a little unclear as the guy’s English wasn’t too hot, and my Chinese is still pretty basic.
I’ve still gotta find a place to buy though…
what about those of us without taiwanese wives/girlfriends? Any clues?
Not 100% sure, i think you will still need a guarantor / co-signer. My taiwanese boss recently bought the building for a new school and she even needed her sister to co-sign for her … and she’s a rich lady. I’ll be speaking to HSBC today or tomorrow so I’ll be able to give you an update from them…
teggs
geez I can’t understand how a co-signer makes the bank feel all good inside when they have a hold on the property anyway :s It’s not like I can run off with it.
If we end up staying here for a while I’d like to weigh up the options of buying vs renting but I read so many conflicting reports regarding whether it’s possible or not.
What about if i got a mortgage outside Taiwan secured on another property or whatever, so effectively a cash buyer. Is that still possible without a Taiwanese guarantor?
Sure, for a cash buyer its possible. There are some kinds of property that a foreigner can’t buy, or needs special permission to buy, but you can definately buy residential property. There is some info on this forum if you want specifics. Interest rates are low here though, so you might wanna look into organizing a loan. I’ve read posts about guys who managed it without a guarantor … seems you just have to have a “never say die” attitude.
teggs
I’ve been in contact with The Shianghai Commercial and Savings Bank (SCSB) about a loan and found some interesting info…
They are willing to give a loan to a foreigner as long as there is a Taiwanese co-signer (as is my case). They usually only give 80% loans i.e. 20% deposit.
Apparently though (and there might be some errors in the next statement as the lady’s English wasn’t great, and my Chinese is worse) you might be able to get a 100% loan when buyng a new place. what happens is that the seller (developer) of the building will declare the price as being higher than it is, so the bank still gives you 80%, but on a higher amount. This will have a net effect of you getting a 100% loan!
This all sounds pretty strange to me, but I’ve heard stranger things since I’ve been here so it might be true. Has anybody heard of something like this before?
teggs
Yep. This is standard practice.
Brian
… so does that mean its legal?
I can’t see why not. A valuation is an educated estimate, within limits and the price of something is whatever someone is prepared to pay for it.
In NZ when I bought my first house and needed a valuation, the first thing the valuer said to me was “how much do you need this place to be worth?” Sure, unprofessional I guess, but the risk is low especially if the value is not too far out of the ballpark. When property growth is negative, it’s a different story.
In America, this is appraisal fraud. People go to jail for it all the time. I’ve worked in the mortgage banking business. Standard practice is a LTV (loan to value) of 80%. 100% loans are often done with what is called “combo loans” where a second lien loan is taken on the house at a higher interest rate to cover the other 20%, the interest rate being higher because it is more riskier as a second lien interest to the property. This is legal. Of course, this is Taiwan, and I suspect all kinds of fraud and corruption to abound. Things are different. The point: When you start hearing a Tawianese talking about a builder jacking up the valuation in order to get an effective 100% LTV, be very warry. It may be the way things are done here, but since you don’t know who’s palms are being greased, you could yourself in a rather nasty situation down the line.
Very interesting. Just this morning I was offered a home at 5 mil - 20%. Beautiful place, 5 bdrms, 4 baths, inside parking for 2 vehicles, front yard, all modern appls, etc.
When I asked her about the -20% she talked about this would help with my financing as it was a ‘personal deal’ to me.
This now makes more sense.
BTW, the lady is a very good and, as far as I have seen for the 14 months I’ve known her and her husband, a very up front business person.
I guess this confirms some of the info on this thread. She even said she can help me & wife find/work with a co-operative bank.
This is an interesting thread for me, as my wife and I are looking to buy a hosue soon, but she’s already used up her first-time buyer rate, so we’re goign to try and put the house in my name, and have me get the mortage.
Informal enquiries have suggested that if my mother in law is the gaurantor I should be able to get a mortgage.
Nonetheless, I haven’t exactly had good experience with “you should be able to do that” in Taiwan, and would be keen to hear from any foreigners who have actually got mortgages.
Brian
yes I’m very interested in this also.
but, I don’t even have a mother-in-law here to go guarantor. I’d be interested to hear if any foreigners have ever managed to get a mortgage here without any family in Taiwan.
Isn’t the idea of 20% deposit etc supposed to give the bank a buffer and negate the need for a guarantor?? Sure for 100% financing I can understand the need for a guarantor…but…
Yes, foreigners can get mortgae loans. Not all banks do this. Most banks will require a co-signer. Even same banks have different policies! I called 3 different branches of Bank of Taiwan and got 3 different answers. One said i can get a loan with no co-signer depending on my credit, assets, salary etc… Another branch said i can get a loan but will need a Taiwanese co-signer… Yet another branch said “sorry, we don’t lend to foreigners”.!! I called the head office to get the low down and they said their policy was that they do loan to foreigners and a co-signer wasn’t necessary. but each branch has the right to or not to lend or require a co-signer.
WOW! i was shocked and excited when my real estate agent said “co-signer??? don’t worry, for a fee we’ll find you one”! 1% to be exact. 1% of the purchase price of the apartment. I guess there are people who will sign anything for a bit of cash. There’s always a solution in Taiwan ! for those without a spouse or girl/boyfriend I suppose this is a good way of getting that dream apartment. Although i havn’t heard of this or know of anyone who has done this my agent spoke as if it was common practice. So, better ask your agent if he can provide this service or find one that can. 1 % is pretty hefty but i think its better to swallow that cost instead of inconveniencing a Taiwanese friend to sign on the dotted line.
Happy hunting.
LOL! 
This is great! Its the only thing that makes Taiwan worth it. Now, I bet you a few years down the road when you get more equity (LTV, loan to value), perahps say 70%, you could get another bank to refinance without a cosignor. A lot of things in Taiwan are based upon precident. If you already have a loan with a property, it might be easier to get a bank to look at you.
so what kind of mortgage interest loan do you guys get…this is going to be my first time buying a house and what’s this specail thing for first time buyers? lower rate or smoething…
I am at 高雄縣橋頭鄉 area and looked at this house by 台糖 tsctaisuco.com.tw…it’s 4 million…heard it was 8 million 10 years ago and dropped the price a lot…anyone know about 台糖 houses? I wonder if they are any good…from 8 mil to 4 mil that’s kinda of big drop…I am ju\st buying this house to rent it out…seems to me like a good investment…MRT stop nearby is finishing its construction in a year or so…the stop is like 10 min walking distance…and a lot of other construction are taking place in the area…
but once you buy the house you need to pay twice the tax fee as TW citizens eh? any other extra fees?
do I have to have ARC to buy houses? or passport is good enough? any other advice for this first time buyer will be really appreciated…oh also I heard liek if the house is 4 million…and you have 1 or 2 million cash in the bank you get even better rate or something? thanks
few questions I am brand new in TW…
in USA if you buy a house and add let’s say a garage…you can go to bank say the value of house is more now and get more loan is that possible in Taiwan?
The 1031 can you do it in TW? it’s if you sell a house and you profit 2 million from it…you have to pay 15-35% tax…but if you use it to buy another property then there is no tax…and you can just keep on doing this so you don’t pay tax on your profit.
This one I am not too sure…Allow to write off depreciation value? since the house is getting older the gorvenment view is as depreciating…so you can get check from government or something? I would assume this isn’t availble in TW?
Live in house for 2 years u get 25k capital gain tax free…
and If you are in the real estate biz…u can claim all losses instead of just 25k,how about here?
in contract…subject to inspection, subject to financing…they have those here? also in offer you write your name then add and/or someone else’s name or some business…so allow you to get out of it…
thanks