Average mortgage term reaches record duration of 27 years

Average mortgage term reaches record duration of 27 years

2026-04-17

Soaring housing prices are pushing homebuyers to take on bigger and longer mortgages than ever before. According to government data, the national average mortgage term has hit almost 27 years. In Hsinchu County, the average term is even longer, at almost 30 years. Experts warn that although longer terms offer smaller monthly payments, they end up causing buyers to pay significantly more money in interest. Even so, many people are opting for long-term mortgages, in part also due to Taiwan’s booming stock market.

If you want to buy a house, you have to first save a lot of money. Then, pay monthly mortgage payments. By the time you’ve paid it off in full, you’ll probably be in your 60s.

Homeowner
Paying mortgage
I’ve been paying my mortgage for five years. A 40-year term would be too much, considering interest, so I think 30 years was a better option. Five years ago, the interest rate was 1.8%, but now it’s 2.3%, so I have to pay almost NT$4,000 more every month.

Member of public
Weighing in on mortgages
In Taipei, a home costing NT$60 to NT$70 million is already considered a luxury and would require a down payment of about 70%. That’s quite a big burden for younger people. Extending the term lets them have a bit more money they can use on other investments.

According to the Ministry of the Interior, the average payment period for new mortgages in the third quarter of 2025 was 321 installments, or about 26 years and 9 months. That’s the longest average period ever in Taiwan. Besides soaring housing prices and bigger loans, the booming stock market has also motivated borrowers to repay back slowly.

Tseng Ching-teh
Real estate research office project manager
As housing prices continue to rise, 30-year mortgages have become mainstream to reduce the burden of monthly payments. And with the government program of housing loans for young buyers, 40-year mortgages are also an option.

In Taipei, the average mortgage is 25 years and 6 months. But in the remaining five special municipalities, the average is 27 years and more. Hsinchu County has the longest average in Taiwan at 29 years and 6 months. Let’s run the numbers for a NT$10 million mortgage with an interest of 2.5%. Under a 20-year term, the monthly payments would come in at more than NT$50,000. But under a 30-year term, the monthly payment would be just over NT$39,000, that’s over NT$10,000 less every month. But, you’d have to pay 10 extra years, and pay an additional NT$1.5 million in interest.

Tseng Ching-teh
Real estate research office project manager
You can first pay off some of the mortgage principal in advance. It doesn’t have to be a 30-year term meaning you absolutely have to pay for 30 years. Paying it off earlier is beneficial as you can pay less interest.

So, it’s up to buyers to decide. While longer mortgage terms allows for smaller monthly payments, it also means that buying a home becomes a lifelong commitment.

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