If you are thinking about buying a home, please consider rates are going up in response to defaults:
[quote]Along with rising unemployment and declining housing prices, housing-loan default rate is picking up, a phenomenon which has prompted a number of domestic banks to raise their housing-loan rates.
Those banks are raising the markup on housing-loan rates from the third year, mostly to 0.5 of a percentage point, or as high as 0.9 of a percentage point, up from the existing markup of 0.2 of a percentage point, which is added on the lower rates for the first two years. Banks which have embraced the move include SinoPac Bank, Chinatrust Bank, and Taiwan Business Bank, while Land Bank of Taiwan and Taipei Cooperative Bank are in the process of calculating the scale of their interest-rate hikes.
One main reason is to cover the rising risk of housing-loan defaults, which might push banks into the red, in view of the thin interest rate differential. Bankers noted that rates of housing-loan defaults appear to be on rise, as growing numbers of borrowers have chosen not to repay the loans for their mortgaged houses, whose prices have been on sharp decline, as evidenced by the 5% growth for court-auctioned houses in the fourth quarter last year.
By CENS, via Taiwan Headlines