The Central Bank of Mongolia announced amendments to mortgage lending rules that create conditions for local borrowers in the countryside to buy apartments with long term loans at reduced  interest rates of 8 percent per annum.

The “Housing Mortgage Program” carried out by Central Bank of Mongolia has been available to borrowers to purchase new or residential apartments that were built in the 1980s.

According to housing mortgage lending rules, loans with reduced  interest rates of 8 percent per annum can be issued to purchase apartments no larger than 80 square meters. Regarding the changes to mortgage lending rules, there is now no limit to the size of apartments eligible for purchase through the low interest loans.

The “Housing Mortgage Program” will soon issue loans to borrowers to purchase houses in the city.

President of the Central Bank of Mongolia N.Zoljargal said that the new loan program will be launched as part of Ulaanbaatar policy to reduce air pollution and smoke.

The Government of Mongolia had originally announced that the interest rate for the housing mortgage program in the countryside would be 7 percent per annum.  However, it was not included in the government budget, so it will be the same 8 percent annual interest for borrowers in the countryside.