Taiwan: Mortgage Payment to Income Ratio

Macro

2026-10-12

Description

The Mortgage Payment to Income Ratio (MPIR) is calculated by dividing the median housing price by the median annual household income to assess a household’s housing affordability. The calculation is based on a 20-year equal principal and interest repayment term, with a loan-to-value ratio of 70%. The monthly principal and interest repayment amount is determined, and then the MPIR is derived by dividing this repayment amount by the median monthly disposable household income.
MPIR represents the ratio of the monthly principal and interest repayment for a median-priced home to the median monthly disposable household income. A higher ratio indicates lower housing affordability.
The affordability levels are categorized as follows:
50% or above: Extremely unaffordable housing.
40% (inclusive) to 50% (exclusive): Low affordability.
30% (inclusive) to 40% (exclusive): Moderately low affordability.
Below 30%: Reasonably affordable.

Published by
Ministry of the Interior of Taiwan
Frequency
Quarterly
Next Update
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AI Data Insight

In the first quarter of 2026, Taiwan's mortgage burden rate reached 41.46%, edging up by 0.71 percentage points from the previous quarter, remaining in the "low housing affordability" zone. Although the indicator has retreated from its historical peak, the pressure on first-time homebuyers remains unabated under the double blow of high interest rates and bank lending restrictions. The market's transaction structure is shifting towards low-total-price and small-square-footage properties.

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AI Data Insight

In the first quarter of 2026, Taiwan's mortgage burden rate reached 41.46%, edging up by 0.71 percentage points from the previous quarter, remaining in the "low housing affordability" zone. Although the indicator has retreated from its historical peak, the pressure on first-time homebuyers remains unabated under the double blow of high interest rates and bank lending restrictions. The market's transaction structure is shifting towards low-total-price and small-square-footage properties.

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Macro
Description

The Mortgage Payment to Income Ratio (MPIR) is calculated by dividing the median housing price by the median annual household income to assess a household’s housing affordability. The calculation is based on a 20-year equal principal and interest repayment term, with a loan-to-value ratio of 70%. The monthly principal and interest repayment amount is determined, and then the MPIR is derived by dividing this repayment amount by the median monthly disposable household income.
MPIR represents the ratio of the monthly principal and interest repayment for a median-priced home to the median monthly disposable household income. A higher ratio indicates lower housing affordability.
The affordability levels are categorized as follows:
50% or above: Extremely unaffordable housing.
40% (inclusive) to 50% (exclusive): Low affordability.
30% (inclusive) to 40% (exclusive): Moderately low affordability.
Below 30%: Reasonably affordable.

Published by
Ministry of the Interior of Taiwan
Frequency
Quarterly
Next Update
Hashtags