How much cash do you need to buy a home in Taiwan? Not simply “price times 20%”. Your own funds (自備款) must cover the down payment plus contract tax (契稅), stamp duty, land registration fees, the land administration agent’s fee (代書, the licensed professional who handles title transfer), the agent’s commission, and a reserve for renovation and moving after handover. Going house hunting with only the 20% down payment is the most common first-time mistake, and it usually surfaces just before signing, when cash flow seizes up.
This guide covers what your own funds must include, how the threshold moves with the loan ratio, whether the 20% under the New Youth Housing Loan 3.0 (新青安3.0) is really enough, and three practical ways to save.
Own funds are more than the down payment
- The largest item: the down payment, set by the loan ratio.
- Easy to miss: taxes, agent and commission, about 1.5 to 3% of the price.
- Spent after handover: renovation and moving, so you are not left empty.
(Estimation method from our buying costs guide; data as of July 2026.)
What own funds include
Many people assume own funds = price × (1 minus loan ratio), work out the down payment and think they are done. Between signing and handover, four more items are easy to overlook:
- Contract tax: assessed building value × 6%. The assessed value is usually far below market value, so in practice it is often estimated at price × 0.6%.
- Stamp duty plus land registration fees: about 0.1% of the price.
- Land administration agent fee: fixed at about NT$25,000, depending on complexity.
- Agent commission: buyers commonly pay 1 to 2% of the price.
Then add renovation and moving. Even for a new build, painting, cleaning, basic furniture and movers commonly run from tens of thousands to several hundred thousand NT dollars. Together these items often add more than 10% on top of the down payment itself.
Our view: The correct formula is down payment + taxes and registration and agent fees + commission + renovation and moving reserve, not the down payment alone. The calculator on our Chinese page includes all five items; enter the price and see the full breakdown. The interactive calculator is on our Chinese page (link).
The calculator works in two tabs. The first takes the price, a renovation and moving reserve, the loan ratio (80% under the youth loan, 75%, 70% or 60%) and the commission rate (1%, 1.5% or 2%) and returns total own funds, with contract tax, fees and the agent fee estimated from assessed value. The second takes your target amount, current savings and monthly saving and returns how long you need, using simple interest with no investment return or inflation. Detailed cost items are in buying and selling costs.
How the loan ratio moves the threshold
Every 10 points of loan ratio moves the own-funds threshold by 10% of the price. On a NT$12,000,000 home:
| Loan ratio | Own-funds threshold |
|---|---|
| 80% (common under the youth loan) | About NT$2,400,000 |
| 70% | About NT$3,600,000 |
| 60% | About NT$4,800,000 |
Same home, and dropping from 80% to 60% means finding another NT$2,400,000. Banks set the actual ratio by your credit, debt ratio, the building’s age and its location, so not everyone gets the maximum. A second home, a non-first-time buyer or an older resale home is often cut to 60 to 70%. That is why own-funds planning should use the conservative case, not the best case.
Our view: Run the numbers once at 70% as your floor and once at 80% as your ideal. If you can reach the floor, your plan is solid. If you only plan for the ideal, a trimmed loan ratio catches you unprepared. See debt ratios and your mortgage.
Youth loan 3.0: is 20% down enough?
The 20% is the down payment share, not the total. The New Youth Housing Loan 3.0 (in force from August 2026) keeps the 80% ceiling, so the down payment threshold really is 20% of the price, one of the lowest available to first-time buyers. But on top of that 20% come taxes, registration and agent fees (about 0.7 to 1% of the price), commission (about 1 to 2%) and the renovation and moving reserve. In practice total own funds land around 25 to 30% of the price, not 20%.
The programme also has eligibility limits: under 50 at application, personal annual income of NT$2,000,000 or less, and a price cap by region (Taipei City NT$35,000,000; New Taipei and Hsinchu NT$25,000,000; other cities and counties NT$20,000,000).
For foreign nationals: The New Youth Housing Loan is a government programme for ROC citizens with household registration (戶籍). Without household registration it generally does not apply. Plan on a standard bank mortgage, run your numbers at 70% as the floor, and ask us which lenders work with foreign buyers.
Three practical ways to save the down payment
1. Automatic transfer on payday. Set a fixed transfer from your salary account to a dedicated savings account on the day you are paid, so the money never passes through the “spend first, save later” stage. Aim for 20 to 30% of disposable income; set it, then adjust to real life rather than starting too high and giving up.
2. Re-set the target every year against current prices. Many people save towards a price from three years ago and find, when they reach it, that prices have moved on. Check actual transaction prices in your target area once a year and update the target.
3. Use time deposits or money market funds, not volatile assets. Money you will need within 3 years should not sit in stocks; a market fall in the year you need it wrecks the plan. Low-volatility instruments earn less but make sure the money is there when you need it, which matters more when your timeline is fixed.
Our view: Saving plans fail less often from saving too slowly than from a vague target. Work out the exact own-funds total and monthly saving first, then check whether your current income and spending can carry that number. A concrete target is one you can stick to.
FAQ
What share of the price should I prepare?
Total own funds (down payment + taxes, fees and agent + commission + renovation and moving) should be 25 to 30% of the price, not just the 20% down payment. Even with the youth loan’s 20% threshold, the other costs push the real figure above 25%.
Is 20% under the youth loan 3.0 really enough?
20% is only the down payment threshold. Add contract tax, stamp duty, registration and agent fees (about 0.7 to 1% of the price), commission (about 1 to 2%) and the renovation and moving reserve, and total own funds exceed 20%.
How are the taxes and fees calculated?
Contract tax is assessed building value × 6% (assessed value is usually far below market, so in practice about price × 0.6%); stamp duty plus registration fees about 0.1%; agent fee fixed at about NT$25,000. Together about 0.7 to 1% of the price, subject to the tax office’s assessment and the individual case.
Can the bank cut my loan ratio? Why?
Yes. Ratios depend on credit, debt ratio, building age and location. Second homes, non-first-time buyers and older resale homes are often cut to 60 to 70%. Model the 70% case so a lower approval does not catch you out.
Where should I keep the money while saving?
For funds needed within 3 years, time deposits or money market funds; avoid stocks and other volatile assets. Having the money there on the day matters more than chasing returns when the purchase date is fixed.
How much should I reserve for renovation and moving?
It varies widely. Basic cleaning, painting, furniture and movers commonly run from tens of thousands to several hundred thousand NT dollars; for a full renovation, NT$500,000 or more is the safer reserve. Include a conservative figure in your total and adjust once you have quotes.
Work out the total first, then the savings plan
Do not head out to viewings the moment the down payment is saved. Contract tax, the agent fee, commission and renovation all belong in the target, or the shortfall appears just before signing. Use the calculator on our Chinese page to get the full total and the monthly figure, and see the buying process for when each payment falls. Questions about your plan? Contact us.