Mortgages in Georgia 2026: Bank Comparison and Interest Rates

Georgian banks remain loyal to foreign capital but hedge their risks with stricter requirements.

The key factor for approval is the down payment. For foreigners, this amounts to 30–50% of the property's market value. A high initial payment often exempts the borrower from the need for complex income verification, allowing them to use the "simplified lending" program. With a contribution of less than 30%, the bank will require detailed verification of solvency.

The cost of money here is higher than in Europe. Interest rates are directly tied to the contract currency and the refinancing rate.

The 400,000 GEL Restriction

Legislation prohibits issuing loans in foreign currency for amounts less than 400,000 GEL (approximately $145,000). The purchase of a budget studio or one-bedroom apartment is possible exclusively in Lari (GEL). Dollar and Euro loans are available only for the luxury segment or commercial spaces.

Current Bank Conditions

The rate corridor currently looks like this:

• National Currency (GEL): Rates of 12–16% per annum. The only option for the mass real estate segment.
• US Dollar (USD): Rates of 8–10%. Available for loan amounts exceeding $145,000.
• Euro (EUR): Rates of 7–9%. Also subject to the minimum amount limit.

The effective interest rate, including insurance and issuance fees, is usually 1–2% higher than the nominal rate.

Investors often confuse a bank loan with a developer's internal installment plan. Let's analyze the fundamental differences.

• Developer Installment Plan. A 0% interest tool. The first payment is roughly 30%, with the remainder paid in equal installments until the building's completion. The term is short (2–4 years), resulting in a high monthly burden. Ideal for the resale (flipping) of housing under construction.
• Bank Loan. Long-term financing with interest. Terms up to 10–15 years reduce the monthly payment. Suitable for purchasing ready-to-move-in housing for rental or personal residence.

Expert Opinion: Taking a loan for speculative resale at the excavation stage is unprofitable — interest payments will eat up the margin. Mortgages in Georgia for Russians (and other foreigners) are justified only when buying an existing business (rental apartment) where rental income covers the bank payment.

The procedure is transparent but requires attention to valuation details.

1. Asset Valuation

The bank only finances liquid objects. An independent appraiser determines the value of the apartment. Often, the bank valuation is lower than the market sales price. The loan is issued based on the lower amount; the buyer covers the difference independently.

2. Dossier Preparation

With a down payment of 40%+, a passport and an extract from the Public Registry are sufficient. To lower the initial payment, income documents will be required: tax statements (2-NDFL), account turnover for six months, and current contracts (all with notarized translation).

3. Approval

The market leaders are TBC Bank and Bank of Georgia (BOG). The application review period is 1–5 days. Upon approval, funds are transferred to the seller, and the object is registered with an encumbrance (lien).