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Criteria for Mongolian Mortgage Corporation to purchase loan portfolios

The management of legal documents include:

  1. Civil Law;
  2. Law on Real Estate Collateral;
  3. Banking Law;
  4. Laws on banking, legal entity deposits, payment, and lending operations;
  5. Law on ABS;
  6. Law on Asset Valuation;
  7. Law on Credit Information;
  8. Law on Notarization;
  9. General Law on Public Registration;
  10. Law on Property Ownership and other corresponding rights to property registration;
  11. Mortgage regulations;
  12. Mortgage operation regulations;
  13. Residential Mortgage Financing Procedure;
  14.  Loan Database Regulation;
  15. State property registration regulations;
  16. Other regulations;

Eligibility Criteria for Borrower

Our eligibility criteria with respect to the individual borrowers include the following:

  • The borrower must be a Mongolian citizen over the age of 18 with full legal capacity;
  • The household debt-to-income ratio may not exceed 45.0% of the household’s pre-tax income;
  • The borrower must not have any past due loans or non-performing loans at other banking or financial institutions;
  • The borrower must not have any outstanding loans in respect of subsidized interest rate mortgages provided by the Government at other banking or financial institutions (applicable to co-borrowers);
  • The borrower must not be liable for payment under any court order;
  • The borrower must maintain appropriate insurance throughout the entire mortgage term as required under the relevant laws;
  • The borrower must have executed a mortgage deed.

 

Eligibility Criteria for Mortgage

Our eligibility criteria with respect to the terms of the mortgages include the following:

  • The term of the mortgage may not exceed 30 years;
  • The interest rate of the mortgage must be 8.0% per annum;
  • The interest rate must be fixed and fully amortizable;
  • The mortgage must be for the purchase of residential property;
  • The down payment with respect to the mortgage must be at least 30.0%;
  • The ratio of the carrying amount of the mortgage to the fair value of the collateral at the time of purchase may not exceed 70.0%;
  • The total area of the residential property to be purchased must not exceed 80 square meters;
  • The borrower must be able to prepay the mortgage as provided by the terms of the agreement;  and
  • The mortgage has not been classified as past due over 90 days or more in the previous 24 months.

 

Eligibility Criteria for Collateral

Our eligibility criteria with respect to the collateral include the following:

  • The collateral must be a private residential property located in Mongolia;
  • In relation to newly commissioned buildings, it must be fully connected to electricity, heating, water and sewage, communications and duly commissioned by the relevant authority and in relation to existing buildings, it must remain fully connected and must not have been subject to restrictions of the use of the building;
  • Title to the property must be registered in accordance with Mongolian laws and the term of ownership must be longer than the term of the mortgage;
  • The collateral must be covered by property insurance for the term of the mortgage; and
  • If the collateral is subject to third-party rights, the relevant parties must have reached an agreement to create a lien over such collateral and register such lien with the National Registration Office in Mongolia. The Civil Code of Mongolia stipulates that the holder of a registered lien has the prevailing right as a fair possessor over third parties.