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FAQs

1. When does MIK transfer mortgages from Commercial bank?

Conditions for purchase is met when “MMC HFC” LLC can assess the loan profile and examine mortgage aging after at least 3 months of loan repayments are made following issuance of loan.

2. Is it possible to transfer loan duty to third party, when the borrower moves oversea?

Borrowers should include a Co- Borrower who meets the criteria of living in Mongolia as co-borrower.

3. What happens when the principal and co-borrower passed away? If rest of the family who have ability to pay, could they continue obligations?

If the mortgage loan was transferred to the “MIK HFC” LLC, first thing to do would be notify to the bank and make changes to the related contract.

If the borrower passes away when the life and accident insurance contract is valid, the insurance company pays an indemnity to cover the mortgage loan. If the indemnity does not cover the full repayment of the loan, the "Civil Code" provides for the liability of the inheritor in the amount inherited from the insured borrower, so it is possible to contract with the heirs to continue paying the mortgage loan.

4. Could I pledge apartment for down payment which was bought by sale and purchase contract advance against the contract if it was gifted ?

The borrower can be pledge their own apartment for down payment that was transferred by sale and purchase contract, only.

5. Is it possible to remake a pledge certificate if the borrower loses their pledge certificate?

In this case, the pledge  can be revoked and reissued by General Authority for State Registration implementing agency of Government of Mongolia.

1. 11 commercial banks involved in program which was started in June 2013. Housing,  residential and herder loans are eligible for 8+/-1% mortgage loan.   

  1. Khan Bank ( Website: www.khanbank.com)
  2. Trade and Development Bank ( Website: www.tdbm.mn)
  3. Golomt Bank ( Website: www.golomtbank.com)
  4. Xac Bank ( Website: http: www.xacbank.mn)
  5. State Bank ( Website: www.statebank.mn)
  6. Ulaanbaatar City Bank ( Website: www.ubcbank.mn)
  7. Capital Bank (Website: www.capitalbank.mn)
  8. Capitron Bank (Website: www.capitronbank.mn)
  9. Chingis Khaan Bank ( Website: www.ckbank.mn)
  10.  National Investment Bank ( Website: www.nibank.mn)
  11. Arig bank ( Website: www.arigbank.mn)

The applicant is eligible for the program who need to be qualify Section 8.1 of the Residential Mortgage Operating Procedure of Mongol Bank and Section 2.5 of the Residential Mortgage Financing Procedure of Mongol Bank.

2. Who is eligible for a Subsidised loan?

Are applicants who get welfare allowance or maternity leave eligible for a Subsidised loan? How does the applicant get involved?

The Social Insurance Office has to be approved and approved after the loan application has been received for 12 months continuously for welfare allowance and maternity leave.

During the period before the application for a loan application, a citizen has to receive a welfare allowance and a maternity leave for a continuous period of 12 months. The Social Insurance Office must be marked and approved. Total monthly loan repayment shouldn’t go over 45 percent of total income.

3. Banks do not provide their mortgage loan  to applicants who retire in  7-8 years. What is the regulation in this regard?

According to the related procedures from Bank of Mongolia, the applicant who is a citizen of Mongolia over the age of 18 with full legal capacity, has no non-performing loan history from banks and financial organizations, has no outstanding subsidized loan by state, no debt under the court's decision is eligible for program. There is no requirements persons who reached retirement age.

4. Foreigner applicant that have married Mongolian citizen, paying social insurance premium regularly, who have been living for 15 years in Mongolia. In the case, is it possible to obtain a Subsidised mortgage loan?

The applicant can only be a “Citizen of Mongolia”, criteria in section 3.2.1  procedure of Bank of Mongolia. Foriegners are not eligible subsidized mortgage loans.

5. Is there any requirement for borrowers to pay accident (life) and property insurance premium every year?

According to procedures from Bank of Mongolia, Financial Regulatory Commission, borrowers need to be covered by accident (life) and property insurance premium during the loan period.

6. Is it possible to apply for Subsidised mortgage loan if applicant change their job? ( When applicant has been paying their social insurance premium continuously)

It should have no effect on the application process.

7. When can borrowers request their loan repayment schedule change?

First, borrowers should apply for a bank loan. Once the loan purchased by MIK, the bank will submit your request to MIK.

1. Could I get a mortgage loan or other types of loan if our mortgage loan was bought by “MIK HFC” LLC?

Section 3.1.4 of the Housing Mortgage Financing Procedure of Mongol Bank states that “debt-to-income ratio (DIR) shall not exceed 45 percent of pre-tax income of a household”. Because DIR is an indicator of borrower’s debt burden, it is necessary to meet these requirements over the time life of the loan.

2. Two days after the scheduled loan payment date, the loan was repaid. However, bank said it is classified as an overdue loan and will be rejected by “MIK HFC” LLC. Is it accurate?

It is reasonable to say the contractual obligation has not been fulfilled if the loan payment has not paid on scheduled payment dates.

3. Is it normal, the lien on the collateral of a mortgage that been transferred to MIK is noted “Special note of court”?

This is normal as the note implies that State Registration Agency recorded the transfer of lien on the loan’s collateral.