Ulaanbaatar
Policy for Housing Young Families and Ensuring Social Protection Presented
Society
Ulaanbaatar, November 29, 2024 /MONTSAME/. On November 27-29, 2024, The Mongolian Sustainable Financial Forum-2024 was held at the State Palace of Mongolia under the theme “Mongolia- Financing Green Development.”
During his remarks at the Forum, Minister of Family, Labor, and Social Protection of Mongolia Enkh-Amgalan Luvsantseren introduced a policy for housing young families and ensuring their social protection.
According to the Minister, 50 percent of the advance payment for housing targeted groups, including young families, those with many children, individuals with developmental challenges, and civil servants, can be financed through the Credit Guarantee Fund. Moreover, in the near future, the standards for private houses will be updated to prioritize the issuance of mortgage loans for energy-efficient private houses, rather than focusing solely on high-rise buildings and apartments. Thereby, this will contribute to lowering urban concentration, traffic congestion, air, and environmental pollution in Ulaanbaatar city.
Since the introduction of housing mortgage loans in 2013, 130 thousand households have been supported with loans totaling MNT 8.9 trillion. However, during this period, housing supply has not increased in line with demand, leading to inflation in housing prices. Also, this initiative has not targeted the intended groups effectively, with individuals with connections taking out multiple loans and renting out properties, which has shifted the system towards a business model. On the other hand, there is about a 2-3-year waiting line for mortgage loan applicants, with 40-55 months to process accumulated applications.
