Taiwan's central bank has stated that home mortgages must be acquired through the appropriate channels, and loans received for home repairs, working capital and other purposes can't be used to buy property.
"We will step up scrutiny, as mortgage is a key area on our financial examination," said the Central Bank of the Republic of China (Taiwan) in a statement on its website.
Taiwan is trying to limit property speculation as record-low interest rates are encouraging borrowing and pushing prices higher.
The central bank issued the comment after a local media report said some property inveestors use home remodelling loans to purchase houses.
The country's benchmark rate was raised to 1.375 per cent on June 24, and a 70 per cent cap on loans for second homes in the metropolitan Taipei area was also introduced.