In order to make homeownership affordable for more people, the government is planning to set up a new housing loan scheme, which features low interest rates and a maximum repayment period of 40 years. But scholars criticize that the new policy does nothing to curb rising real estate prices, and would only increase mortgage pressure on home buyers in the long run.

Although there are many building construction projects in the metropolitan area, most of the buyers are investors.

It's harder for younger people to afford a place of their own.

Now the government is considering launching a program, offering 40-year low-interest mortgage loan.

So far, the maximum loan term is 20 years.

Based on the lowest interest rate of 3%, if one takes out a loan of 10 million NTD and the repayment period is 20 years.

The monthly payment is 55,000 NTD.

The total amount paid is 13.31 million NTD.

But if the term is extended to 40 years, one would only have to pay 35,000 NTD per month.

However, the total amount paid is 17.18 million NTD, which is a lot higher than the sum of 20-year mortgage payment.

Scholars believe if the public considers to take out loans simply because the monthly burden is lowered, this could cause a bigger social problem since a bigger risk is hidden beneath the huge interest payment.

They suggest the government to contain flipping houses by tracing down the capital source in high-priced residential units and use tax system to control the overheating of housing market.