How mortgages in Georgia work for foreign buyers

Introduction

Buying property in Georgia appeals to many foreigners for lifestyle and investment reasons. A mortgage can make the purchase more affordable, but procedures and terms differ from other countries. This guide explains what to expect, what documents to prepare and practical steps to reduce risk.

Who can get a mortgage in Georgia 🤝

• Many Georgian banks provide mortgages to non-residents, though eligibility depends on the bank and the buyer's country of residence.
• Lenders usually assess income stability, credit history and the type of property being purchased.
• In some cases banks may ask for a local guarantor or additional collateral if income is overseas or inconsistent.

Mortgage types and currency options 💱

• Mortgages are commonly issued in GEL and sometimes in foreign currencies. Non-residents frequently receive offers in GEL.
• Interest structures vary: fixed, variable or combined. Always clarify how payments may change over time.
• Developers may offer financing packages for new projects; compare these against bank offers.

Bank requirements and documents 📄

• Valid passport and copies of visa pages if applicable.
• Proof of income: payslips, bank statements, or tax returns, depending on the lender.
• Details of existing debts or liabilities.
• Sales agreement or preliminary contract with the seller.
• Some banks request a local tax ID or contact details of a local representative.

Down payment, valuation and insurance 🏷️

• Down payments are typically a significant portion of the purchase price; exact requirements depend on the bank and property.
• Lenders require an independent valuation and often mandatory insurance for the mortgage collateral.
• For investors, include repair and operating costs in your budget before rental income begins.

Legal checks and registration 🏛️

• A full legal check is essential: verify ownership, encumbrances, planning permissions and building permits.
• The ownership and mortgage are registered with the state registry, which secures buyers rights.
• Hire a local lawyer or a trusted agency experienced with foreign buyers to avoid surprises.

Step-by-step transaction process 🔁

1. Market research and property selection.
2. Pre-approval from one or more banks to know your budget.
3. Document submission and property valuation.
4. Signing mortgage and purchase contracts.
5. Registering ownership and the mortgage in the public registry.
6. Insurance arrangements and handover of keys.

Investor tips and risks ⚖️

• Currency risk: if your income is in another currency, exchange rate fluctuations may affect mortgage payments.
• Liquidity: select properties with clear rental demand or resale potential.
• Ongoing costs: taxes, utilities and property management fees must be factored in.
• Exit strategy: decide in advance whether you plan long-term rental, short-term lets or resale.

Practical recommendations from BuyHome ✅

• Get pre-approval early to focus your search and move quickly when the right property appears.
• Compare bank offers and developer financing side-by-side including fees and penalties.
• Work with an agent who supports foreign buyers — BuyHome can assist with documentation, valuations and closing the deal.
• If renting out, model expected cash flow conservatively and account for vacancy periods.

Example scenario

Imagine a buyer planning to purchase an apartment to rent. They secure pre-approval, provide the required down payment, complete valuation and insurance, and register the property. Upfront administrative costs exist, but thorough preparation prevents delays and unexpected expenses.

Conclusion and call to action 📞

Mortgages in Georgia are available to many foreign buyers, but success requires preparation: documentation, valuation, legal checks and a clear investment plan. If you need help finding suitable properties or navigating mortgage options, BuyHome can guide you through every step. Start searching or contact us for a personalized consultation: https://buyhome.ge/en/search