The central objective of this study is to determine the demand for housing microfinance (HMF) in Mongolia. It identifies who is currently providing HMF loans and the barriers to fully meeting the demand. The paper also recommends next steps for Shore Bank International’s (SBI) partners, the International Finance Corporation (IFC) and the Mongolian Mortgage Corporation (MIK), in order to support an enabling environment for HMF in Mongolia and create access to housing finance. The study found that there is a strong demand for housing microfinance loans in Mongolia. Many residents want to make home improvements and lenders are interested in providing loans to fund these projects. However, lenders face many challenges, including funding, collateral requirements and availability, borrower capacity to repay and appropriate regulations and regulatory support. The assessment discusses a number of solutions, including highlighting the role that MIK can play by providing a housing microfinance liquidity facility. Several lenders currently provide housing improvement loans and in order to promote housing microfinance in the market, there is a need to define housing microfinance as a discrete loan product and develop a stronger understanding of the product and its opportunities and challenges in the market.