A new procedural agreement regarding mortgage loans was signed between Mongol Bank and several commercial banks on February 10, allowing the eight percent mortgage program to continue.
In accordance with the new procedural agreement, the commercial banks will be cooperating with Cabinet, Mongol Bank, and the Mongolian Mortgage Corporation to continue the low interest mortgage loan program.
Chief Executive Officer of Golomt Bank U.Ganzorig said, “Our bank believes that we must increase financing. Currently, there’s a long waitlist for the program. A lot of construction companies have built apartment complexes with the understanding that the eight percent mortgage loan program would continue.”
The CEO of Golomt added that the sale of apartments has come to a standstill. Mongol Bank initiated the signing of a new agreement to increase real estate sales.
“Golomt Bank issues six to seven billion MNT in mortgage loans monthly, yet there are still many people waiting to be approved for a loan. We issue mortgage loans in accordance with the procedures set by Mongol Bank,” added U.Ganzorig.
“Mongol Bank approved new procedures for the mortgage loan in October 2016. The agreement is in the process of being signed by all participating organizations. Today, commercial banks have signed the agreement, allowing the mortgage loan program to sustainably resume,” said L.Enkhdelger, a public relations officer at Mongol Bank.
As Mongol Bank officials have noted, the main change made to the loan’s procedures concerns repayment conditions. Statistics show that the repayment of the low interest mortgage loan has been very favorable. Since October 2016, 118.8 billion MNT in mortgage loans has been financed by Mongol Bank.