The government approves the new long awaited mortgage procedure. The new procedure will cover apartments that are less than 80 square meters and already commissioned or old ones. The mortgage will have a AER of %8+ up to 20 years. The pre-payment will be around 10-30%. The subsidization will be coordinated by the cabinet’s policy.
The government is promising that the mortgage will be available to everyone who has a permanent job that can be pay off the debt in 20 years. It will not create an oversubscription in a single bank because it will be available to any commercial bank that has an agreement with Bank of Mongolia.
The monthly payment is assumed that the it will not exceed the household income’s 45%. The previous mortgage purchasers can switch to the new mortgage after 7 months.
23.8% of the country or 40% of Ulaanbaatar’s population is living in a centrally heated apartments and others are living in yurts or ger districts. The person who has a knowledge with the matter stated that the mortgage will be issued within this month.
The government stated that 360 billion tugriks will be loaned out to the construction companies before the banks start issue mortgages.
President of Bank of Mongolia stated that the effect on the economy will be increased monetary circulation by 30-40% in the country. The money will be concentrated not on purchasing unnecessary goods, but into Social Insurance Fund. It will keep the price levels from raising he added.