The Central Bank of Myanmar declared on 15 January that 5% of total loans portfolio of the local banks can be allocated towards mortgages. The aim is to foster growth and development in the local banking sector and create more opportunities for the public to own homes. Central bank encourages mortgage loan not to be longer than three years. Mortgages that exceed three years need approval from CBM and CBM will make a case- by-case basis decision based on the terms and conditions of the loans submitted. Banks were ordered last November to restructure their existing overdrafts to term the loans to three years. From February 1 this year onward, loans can be granted without the need of collateral at a maximum lending rate of 16%, with collateral at 13%. Minimum deposit remains at 8%, and the Central Bank rate also remains the same at 10%.