Fund­ing for mort­gage pro­gram to­tals 30 bil­lion MNT in first two months of 2018

The UB Post - - Business & Economics -

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.

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