The Affordable Housing Finance Program was approved as part of the Pricing Stabilization Program and was implemented in 2013 by the Bank of Mongolia in conjunction with the Ministry of Construction (now the Ministry of Construction and Urban Development).
Under the Affordable Housing Finance Program, the Bank of Mongolia extended loans with an interest rate of 4.0% per annum to commercial banks in Mongolia. Using those loans from the Bank of Mongolia, commercial banks then provided Mongolian citizens with housing mortgages at a subsidized interest rate of 8.0% per annum for a maximum of 20 years (which has since been extended to 30 years) for the purchase of an apartment of up to 80.0 square meters. These mortgages were then sold to the SPCs established by the Issuer and securitized for the issuance of RMBS to the originating commercial banks. These originating commercial banks subsequently transfer the senior tranche of each series of RMBS to the Bank of Mongolia as partial payment for loans issued by the Bank of Mongolia to these originating commercial banks to help finance their mortgage origination business
Since June 2013, the following 10 commercial banks participated in the program.
Citizens who meet the following eligibility criteria, are eligible to be granted mortgage loans:
The Affordable Housing Finance Program was approved as part of the Pricing Stabilization Program and was implemented in 2013 by the Bank of Mongolia in conjunction with the Ministry of Construction (now the Ministry of Construction and Urban Development).
Under the Affordable Housing Finance Program, the Bank of Mongolia extended loans with an interest rate of 4.0% per annum to commercial banks in Mongolia. Using those loans from the Bank of Mongolia, commercial banks then provided Mongolian citizens with housing mortgages at a subsidized interest rate of 8.0% per annum for a maximum of 20 years (which has since been extended to 30 years) for the purchase of an apartment of up to 80.0 square meters. These mortgages were then sold to the SPCs established by the Issuer and securitized for the issuance of RMBS to the originating commercial banks. These originating commercial banks subsequently transfer the senior tranche of each series of RMBS to the Bank of Mongolia as partial payment for loans issued by the Bank of Mongolia to these originating commercial banks to help finance their mortgage origination business
Since June 2013, the following 10 commercial banks participated in the program. These commercial banks recieve 8 +/- 1 percent interest mortgage loan applications.
Citizens who meet the following eligibility criteria, are eligible to be granted mortgage loans:
<p><strong><a href="https://www.legalinfo.mn/annex/details/8872?lawid=13848" target="_blank">"Affordable housing loan finance procedure" approved by the Government of Mongolia </a>-click here </strong></p>
