Under Constitutional Court Resolution 13, the commercial banks have frozen mortgage rates at 8%.  Parliament plans to create the legal framework, in order to re-launch the mortgages before the Lunar New Year holiday next month. Tomorrow, some MP’s will present the draft mortgage law project to Parliament.

Today, Parliamentary Speaker Z.Enkhbold, the President of the Bank of Mongolia N.Zoljargal, a member of the Control Committee at the Bank of Mongolia J.Munkhbat, and Director of the Mongolian Mortgage Corporation N.Gantugs provided answers to the media.

Mr. N.Zoljargal said that a possible situation to reduce the mortgage rate to 5% can be created.

If their plan becomes reality, people with very high levels of income will not be able to obtain mortgages. If a household’s monthly income is MNT 1 million, or more, the 30% pre-payment must be paid.  This will make it possible to provide more apartments to more people.

The Speaker noted: “We do not have the possibility to reduce the prepayment level from 30% to 10%”. If this were possible MNT 20 billion would be required from the State Budget.