Working for the four little kids, and then buying a house for myself. The new Youth Housing Loan seems like a benevolent policy, but why have banks in Taiwan frequently rejected loan applications in the past year? This article provides a systematic strategy from the perspective of banks, allowing you to transform from a passive 'borrower' into an active creator of your own financial brand, becoming a client that banks find hard to refuse. (Background: The mortgage money shortage is worsening) To buy a property worth 20 million, an annual income of at least 2 million is required for banks to be willing to provide 80% financing) (Background information: How to shoulder a million-dollar mortgage with a monthly salary of 30,000? Surprisingly, it accounts for 12% of the total! Ministry of the Interior: The financial tsunami has effectively curbed the housing market) The M-shaped society is well understood by everyone. If you apply for Taiwan's current 'New Youth Housing Loan,' you will definitely understand the taste of it even more. The Taiwanese government has rolled out the red carpet, named 'Youth Housing Security,' aiming to guide young people towards a stable future as homeowners. However, many confident applicants find themselves at the bank's counter, only to discover that the carpet they are stepping on has a message thanking them for coming and inviting them to return next time. Housing market expert He Shichang recently pointed out bluntly in a public program: 'The reasons for a breakup are all fake; only the breakup is real.' This statement accurately captures the collective confusion among current mortgage applicants. When banks reject a seemingly reasonable loan application for bizarre reasons, the underlying message is about 'how financial credit is quantified and how risks are priced,' plus in a resource-constrained game, who can become the winner. Let's understand the ins and outs of housing loans; don't just be a passive waiting party, but an active banking client. With favorable policies, why is it hitting the banks' headwinds? The birth of 'New Youth Housing Loan' stems from the government's goodwill policy. In an era of high housing prices, the leaders hope to lower the home-buying threshold for the younger generation through favorable loan conditions (such as high percentages, long terms, and interest subsidies), thereby promoting social stability and intergenerational justice. This is a strong policy tailwind that should theoretically allow countless first-time buyers to set sail smoothly. In fact, at the beginning, brave individuals indeed benefited from high approval rates. However, the policy has faced the banks' 'commercial rationality' headwinds. What is the essence of a bank? It is neither a charitable organization nor a government executing unit, but a profit-driven enterprise accountable to shareholders and depositors. Its core business is to achieve 'profit maximization' based on risk management, and the current water level of the mortgage market is low! This means the total amount of funds available for lending is limited. The reasons behind this are complex, including macro-prudential measures from regulatory authorities, conservative expectations about future economic prospects, market changes caused by U.S. tariffs, and so forth. This creates a fundamental contradiction: the government hopes banks will broadly lend funds to the young people in need of help, while banks wish to precisely lend limited funds to those least likely to encounter problems and even bring additional value; the conflict between the two has become the current disarray in the mortgage market. We can metaphorically say that the New Youth Housing Loan is a banquet graciously hosted by the government, which has sent out a large number of invitations (the New Youth Housing Loan program), hoping everyone can sit down and eat their fill, at least to some extent. But the head chef (the bank) responsible for serving the meal finds that the top-quality ingredients (funds) in the kitchen are limited. To ensure the quality and reputation of the banquet, what will the head chef do? He won't serve the dishes evenly; instead, he will prioritize serving the best dishes to those who are dressed most elegantly and seated at the main table as VIP guests. As for the other guests, he might come up with some excuses like 'the ingredients just ran out' or 'there was a small problem with the stove' to placate them; these reasons are all false, and only the outcome of 'unable to serve you' is real. Therefore, when a friend with an annual income exceeding one million New Taiwan Dollars (we all have such friends) applies for the New Youth Housing Loan but is asked for a higher interest rate or lower percentage, or even rejected, what he faces is not a denial of personal qualification but the bank's normal strategy in times of resource scarcity. The bank is not questioning whether he 'can’t pay back,' but is assessing 'among many applicants, you are not the target for dividing the funding water level.' Build your 'financial brand' for the mortgage. After understanding the systematic friction above, we can realize that the application threshold for the New Youth Housing Loan no longer guarantees successful approval. Applying for a mortgage has already become a showcase of one's 'financial credit brand.' If you want to secure a loan, you need to shift from a one-time 'transaction mindset' to a long-term 'brand mindset,' transforming yourself into a Class A asset that banks cannot refuse. The author happens to have studied marketing, and a top brand needs to possess three core elements: a clear brand positioning, rich brand assets, and impeccable brand reputation. This just corresponds to the three pillars of mortgage review. 1. Brand Positioning: Your job stability and future potential. Brand positioning answers the question 'Who are you?' In the eyes of banks, the ideal positioning is 'low risk.' This explains why professions like military, public servants, doctors, and employees of top enterprises are favored for loans. Recent mortgage programs even mentioned that banks today will dig deep into whether teachers work in public or private schools when evaluating the long-term stability of your 'brand.' Therefore, before applying for a mortgage, avoid changing jobs easily unless you are moving to a company with a better reputation and higher income. This is like a well-known brand not suddenly changing its core logo and consumer market positioning before launching its flagship product. Banks look at what you have behind you; if you don’t have a prominent family background, like your dad being listed on Wikipedia, they will consider your job title and the size of your company. 2. Brand Assets: Your diverse wealth proof. Brand assets answer the question 'What do you possess?' This is not just your monthly or annual income; what banks want to see is a three-dimensional, diverse, and robust asset portfolio. Savings, stocks, gold, insurance policies, and even parental properties as collateral—all of these showcase the overall value and risk resistance of your 'brand' to the bank. It's much like what luxury goods moguls refer to as 'allocation'; if you want to buy a limited edition Birkin bag (ideal mortgage conditions), you often need to first purchase a lot of non-popular products (savings, investments, credit card transactions) from that brand. It is rumored in banking circles that if a friend has two or more credit records with timely repayment history, they have a greater chance of loan approval; this is like constantly 'allocating' for your brand before applying, accumulating transaction records with the bank, and ultimately successfully obtaining the 'bag' they desire. Accumulating diverse assets is not something that can be done in one or two days. Why do young parents encourage their children to learn financial management from a young age? Because with diverse assets, banks will see them as customers who understand money and can repay it. 3. Brand Reputation: Your credit record. Credit answers the question 'How has your past performance been?' C, the person in charge of CWC Financial Literacy Lecture Hall, once shared a case where a friend with savings reaching eight figures was impacted by a mere 4,000 NT dollars credit card payment made while abroad, affecting his mortgage conditions. This illustrates that, in the eyes of banks, there is no such thing as a 'small matter' in credit records; any overdue payment is a public negative review of one's personal brand reputation, sufficient to overshadow all outstanding assets. Therefore, remember to pay off all credit loans before applying for a loan, maintaining a perfect repayment record, which is the most crucial brand reputation management. One must never be late on the most commonly used credit cards (loan financial products) or use revolving interest. It is advisable to link a long-term account with sufficient deposits for automatic deductions. If you do happen to be late, don’t hesitate—immediately pay the full amount and call the bank's customer service, explaining that the delay was unintentional. Politely ask the customer service to help you 'remove' the late payment record, though this method should not be abused. To build your credit, you must first borrow and then repay. Borrowing and repaying on time makes it easier to borrow again.