The Mongolian government has announced plans to prioritize young families in its mortgage policies for 2025. This initiative aligns with the government’s declaration of 2025 as the Year of Youth Support and aims to address housing challenges faced by young couples.
Targeted Mortgage Support
Minister of Family Development and Social Protection, L. Enkh-Amgalan, highlighted that the National Committee, established two months ago, is focusing on increasing mortgage accessibility and creating sustainable financing sources. Under the proposed policy, young families purchasing their first homes will gain access to tailored mortgage loans. Key eligibility criteria include:
- Both spouses must be employed and contributing to social insurance.
- Families with 2–3 children will be prioritized.
- Homes of up to 50 square meters will qualify.
- Loan guarantee mechanisms may allow partial withdrawal of down payments.
Minister Enkh-Amgalan emphasized that concrete solutions and frameworks will be finalized by the end of December.
Broader Housing Initiatives
The Ministry of Urban Development and Housing also plays a pivotal role in implementing the housing strategy. Minister J. Batsuuri announced plans to make 150,000 homes available within the next four years, with 60,000 homes supported through mortgage programs. Notably, half of these loans will be directed toward young individuals.
Key features of the housing initiatives include:
- Rural Incentives: Young people purchasing homes in rural areas may qualify for mortgages at a reduced 3% interest rate, with the difference subsidized.
- Energy Efficiency Standards: Private houses included in the program must meet stringent heat-retention standards to reduce energy consumption and costs, in line with recommendations from donor organizations such as the World Bank.
- Green Housing Projects: In 90 soums, eight eco-friendly houses will be built for families, with provisions for working conditions for specialized personnel.
Enhanced Financing for Mortgages
To support these initiatives, the government has allocated 500 billion tugriks from the Savings Fund for 2025. Combined with repayments of existing loans (approximately 500 billion tugriks) and contributions from commercial banks (200 billion tugriks), the total mortgage financing next year is expected to surpass 1.2 trillion tugriks.
The new policy aims to prioritize first-time homeowners and reduce speculative practices that previously inflated housing prices. In the past, around 60% of mortgage loans were granted for second and third homes, creating barriers for target groups like young families and government employees.
A Vision for Affordable Housing
The government’s policy marks a significant shift toward supporting youth and addressing Mongolia’s growing housing demand. By focusing on first-time buyers, rural incentives, and sustainable construction, the initiative seeks to enhance housing accessibility while promoting responsible energy usage. These efforts reflect the administration’s broader commitment to fostering a supportive environment for Mongolia’s younger generation.
