Funding for mortgage program totals 30 billion MNT in first two months of 2018
Funding for the mortgage program continued in the first two months of 2018 with 30 billion MNT provided by Cabinet and Mongol Bank. January and February saw 16.6 billion MNT in funding respectively.
In 2018, Cabinet will provide 120 billion MNT in funding and Mongol Bank will provide 180 billion MNT in funding sourced from the repayment of its loans. A total of 300 billion MNT is expected to be allocated for the mortgage program in 2018, providing 4,400 families with housing.
Mongol Bank has begun the process to distance itself from the mortgage program and fully transfer authority over the program to Cabinet. As a part of the extended fund facility with the International Monetary Fund, Mongol Bank will cease to take part in all quasi-fiscal activities. This includes providing commercial loans and its funding in the mortgage program, among other things.
Cabinet recently proposed decreasing the down payment from 30 percent to 25 percent for those enrolling in the ger district redevelopment plan or those purchasing apartments on the outskirts of the city. The proposal also includes decreasing the eight percent interest to seven percent.
Due to the fact that statefunding has not been enough to cover the demand to be enrolled into the mortgage program, some construction companies have begun to offer their version of the eight percent mortgage program in an effort to sell apartments.