Cabinet approves mortgage procedure

Ulaanbaatar /MONTSAME/ The general procedure of mortgage was backed at the cabinet meeting Thursday. People will be able to buy a less than 80 square meters new or used apartment. The mortgage interest of 8 ±1 percent per year may be paid off 20 years provided that a 10-30 percent advance is paid. A monthly payment must not exceed a 45 percent of the mortgagee family's one month income. The Government will determine son the target group who can enjoy some discount. People has a right to choose a bank and banks have right to participate in the program equally. Some ministers and other officials were told to strengthen related programs and projects and to accord the mortgage system with security and pensions fund reform. The statistics say that 23.8 percent of the total population of Mongolia and 40 percent of Ulaanbaatar city lived in apartments, the rest in ger districts.