In recent years the housing supply expanded significantly, related to the fact that a growing proportion of the creditworthy population could receive mortgage loans. Roughly 38% of the population lives in apartments and the remaining 62 % percent resides in ger dwellings, the rural vernacular housing type of Mongolia.

As the majority of the population lives in a ger dwelling, the Government of Mongolia launched several housing programs to promote access to affordable housing. On June 2006, the Government approved the ”40,000 Houses Program,” followed by the 100,000 “New Development Program” in June 2010, and an additional 4,000 unit housing program. The overall objective of these programs is to increase the total national housing supply and related mortgage finance for housing for middle and low income households.

In September 2006, the Bank of Mongolia – along with ten commercial banks – jointly established a private sector-controlled secondary mortgage institution called the Mongolian Mortgage Corporation (MIK). The main goal of the institution is to develop primary and secondary markets by issuing and selling Mortgage-backed securities on domestic and foreign capital markets, and to create and ensure a smooth, long-term financing system that will improve access to housing and promote modern urban development.