Taiwan mortgage delinquency cases rise to 9-quarter high

台灣房貸逾放違約案件數量升至九季以來的最高

TAIPEI (Taiwan News) — Residential mortgage delinquency cases in Taiwan rose to a nine-quarter high in the third quarter of last year, reaching 0.08%, according to the Cabinet's latest statistics.

The number of overdue mortgage cases increased 41% from the previous quarter and 60% from a year earlier. Analysts said the increase in these cases partly reflects ongoing weaker housing market conditions, tighter bank lending standards, and continued pressure from high property prices and interest rates, CTEE reported.

However, Ubee housing platform general manager Yeh Kuo-hua (葉國華) said the overall delinquency rate remained low. He added that the rise in case numbers mainly reflects a larger pool of mortgage borrowers in recent years, meaning more outstanding loans naturally result in a higher number of overdue cases.

By region, the six major municipalities accounted for about 80% of all overdue mortgage cases. Kaohsiung recorded the highest number at 408 cases, followed by New Taipei City with 388, Taipei with 303, Taichung with 244, Taoyuan with 234, and Tainan with 196.

CTBC Real Estate researcher Chuang Ssu-min (莊思敏) said Kaohsiung’s higher figures reflect strong housing price gains in recent years, driven by investment linked to technology development plans, urban renewal zones, and transport infrastructure projects. She added that many buyers entered the market using high leverage during the upcycle.

As market activity has cooled and lending conditions have tightened, some borrowers with weaker financial buffers are now facing increased repayment pressure. This is especially evident in areas where demand for resale homes has weakened.

Yeh said the current risk of borrowers defaulting on mortgages remains much lower than during the 2009 global financial crisis, when delinquency rates exceeded 1%. However, future trends warrant close monitoring.

The market is showing early signs of gradual weakening, particularly as transaction volumes decline and some borrowers face tighter financial conditions. Yeh added that many recent buyers used mortgage grace periods of up to five years under policy incentives, meaning repayment pressure could increase as principal repayments begin in the coming years.