1. Scope of application: housing purchase loans (without self-use residence, general housing), building additions and repairs loans, family growth loans (revolving-collateral provided, non-revolving).
2. Definition: Loan Interest Rate = Time Savings Interest Rate Index + Individual Add-on.
3. Time Savings Interest Rate Index: In order to follow the market trend and adopt the principle of “transparency and non-manipulative”, the time savings interest rate index is determined by the average (round up or down for the fourth number after the decimal point) of one-year, two-year and three-year time savings rates of six banks, including Taiwan Cooperative Bank, Taiwan Land Bank, First Bank, Chang Hwa Bank, and Hua Nan Bank. The index is adjusted twice each year on the 21st of June and December, using the 15th of that month as the base day, or four times each year on the 21st of March, June, September and December, using the 15th of that month as the base day. If the day is a holiday, the index will be adjusted on the following working day. For some customers, they can choose to adjust the index every three months or every six months.
4. Individual Add-on: Individual add-on is decided based on the processing cost, the location of the collateral, annual income of the customer, and the contribution rate of deposits. In addition, preferential reduction rate might apply if the applicant is the credit card customer of the Bank. The rate is determined based on the “Table for Calculating Add-on Rate of Index Housing Loans”
5. Example: The applicant applies for housing purchase loans (without self-use residence) on December 21, 2006. The time savings interest rate index of the day is 2.297%, with add-on rate between 1.65-4.4%. Then the approved loan interest rate will be between 3.947% and 6.697%.
6. Current Time Savings Interest Rate Index:
(1). Adjusted every six months: 2.297%
(2). Adjusted every three months: 2.297%.
7. Service Fee:
(1). For new loan customers (priced based on time savings interest rate index): NT$2,000
(2). For old loan customers: NT$2,000 for change of contract; if the interest rate after the transfer is the same as or higher than that before the transfer, the service fee will be exempted.
8. Repayment ahead of schedule or fines for refinancing: none.
9. Under the following conditions, the Bank remains the right to change the reference banks included in the time savings interest rate index:
(1) Either one of the above banks has undergone acquisition, discontinue of business, bankruptcy, reconstruction, supervision or taking-over, etc.
(2) Either one of the above banks stops to disclose the one-year, two-year and three-year time savings rates (fixed rates).
10. Places for application: all branches of the Bank.