Mortgage rates to be reduced

2016 оны 2 сарын 1

The Government and Bank of Mongolia have announced that the mortgage rate is to be reduced from 8% to 5%. Therefore, those people who have taken mortgages at 8% naturally want to know whether their rates will be reduced following this new decision.

According to the Deputy President of Bank of Mongolia N.Batshugar “The Bank of Mongolia is working with the Government and commercial banks to make changes to the 16 relevant protocols. As a result, the 5% mortgage rate will take effect from April 2016. Existing mortgage holders, currently on the 8% rate can change to the 5% in April”.

It should be noted that the 30% apartment pre-payment policy will not be changed. Economists consider that the reduction of pre-payment would increase the burden on mortgage holders’ families.

 

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