Taiwan: Mortgage Payment to Income Ratio

Macro

2026-04-01

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

Taiwan's mortgage burden ratio for the third quarter of 2025 dropped to 42.42%, a significant improvement from the previous 43.12%, continuing to move away from historical highs. Benefiting from a slight loosening of housing prices and an increase in disposable income, home-buying pressure has seen an initial easing. As the central bank's selective credit controls take effect, the market expects the housing market to develop toward a steady soft landing.

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AI Data Insight

Taiwan's mortgage burden ratio for the third quarter of 2025 dropped to 42.42%, a significant improvement from the previous 43.12%, continuing to move away from historical highs. Benefiting from a slight loosening of housing prices and an increase in disposable income, home-buying pressure has seen an initial easing. As the central bank's selective credit controls take effect, the market expects the housing market to develop toward a steady soft landing.

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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