Up to MNT 100 million will be granted to people who are applying for a mortgage loan for the first time and who meet the credit criteria, such as living in the countryside and remote areas, with an annual interest rate of 3 percent.
As of March 10th of this year, 1115 borrowers have received mortgage loans worth MNT 115.1 billion, according to the Ministry of Construction and Urban Development of Mongolia. MNT 89.3 billion of the loan was provided by the Bank of Mongolia, and MNT 25.8 billion was provided by commercial banks.
In Ulaanbaatar, 77 percent or MNT 88.7 billion of loans were granted, while the remaining 23 percent or MNT 26.3 billion were provided to citizens of rural areas. The Ministry of Finance has informed that the procedure for providing mortgage loans with a 3% interest rate is being developed for people migrating to rural and countryside. It is planned to be issued through banks within the first quarter of this year.
In addition, the “Mongolian Mortgage Corporation” has signed a memorandum of cooperation with the National Home Mortgage Finance Corporation of the Philippines and the Malaysian Housing Finance Company. These agreements will expand cooperation to share experiences on the housing financing system and the mortgage-backed bond market.