Mongolia has provided housing mortgages to 6,469 borrowers since the beginning of this year, the country’s Ministry of Construction and Urban Development reported.

Over 80 percent of the housing mortgages were provided to residents in the capital city of Ulaanbaatar, which is home to over half of the country’s 3.4 million population. However, the Government is now focusing on providing housing mortgages in more provinces than Ulaanbaatar in order decreasing population density.

Since beginning implementing a mortgage loan program in 2013, a total of 109,800 borrowers have benefited from the housing program.

In order to increase affordability and accessibility of apartments and reduce air pollution in urban areas, the Mongolian government started implementing a mortgage loan program in 2013, targeting mostly families living in Ger district areas.  With loan funding from the Bank of Mongolia, commercial banks have been providing Mongolian citizens aged above 18 years old housing mortgages at a subsidized interest rate of eight percent per annum for a maximum of 30 years for the purchase of an apartment of up to 80 square meters.

Beginning from October 2020, the Bank of Mongolia’s regulation on the housing mortgage financing have been changed to reduce the annual interest rate of housing mortgages issued after October 01, 2020 down to six percent with a view to make mortgages more affordable by providing reduced interest rate loans with government subsidies.