Mayor S.Batbold lowers requirements for mortgage program discount

The Ulaanbaatar Mayor’s Office announced in June that ger district residents living in zones 1 and 2 of the capital will be able to submit applications to be relieved of paying the 30 percent down payment required for the government-funded mortgage program in exchange for their land.

Due to complaints from citizens who have been turned away as their land didn’t meet the required size for the mortgage discount, Mayor S.Batbold has lowered the requirement to 400 square meters from 500 square meters.

Only selected citizens will be able to enroll in the mortgage program without down payments as it will be financed by the Ger District Development Fund in an effort to reduce air pollution in the city.

In January, a decree issued by the Ulaanbaatar Mayor’s Office divided the city into zones. The establishment of new settlements outside of residential zones was prohibited, with the area outside of residential zones being declared "eco areas".

The decree outlines the establishment of four different air pollution zones in the city. Zone 1 includes apartments, houses, and residential complexes. The decree states that coal burning will be prohibited in this zone. Zones 2, 3, and 4 have been identified as areas which will use electrical heating and areas which will use “clean” fuel.

The Ulaanbaatar Mayor’s Office has stated that decreasing the required size of land will give opportunity for more people to be enrolled in the program.

In the last month, around 1,000 citizens had submitted their applications to be enrolled in the program. City officials have opened new centers to receive applications at Bayankhoshuu and Intersection 32.

The applicants must fulfill the base requirements put forth by banks financing the mortgage program. The apartments they can purchase must also not exceed 70 square meters or be priced higher than two million MNT per square meter.