How mortgages work for residents and foreigners in Georgia

Mortgages in Georgia: a practical guide 🏠

Buying property in Georgia is popular with locals and foreigners alike. Many banks offer mortgage loans, but terms depend on residency, income documentation and the type of property. This guide explains the main steps, common requirements, and practical tips for buyers and investors.

1. Who can borrow

• Residents: Georgian citizens and holders of residence permits usually get the simplest procedures.
• Foreigners: several banks lend to non-residents. Expect stricter checks and sometimes higher initial payments.

Tip: compare multiple banks — some international or larger local banks have specific programs for foreigners.

2. Typical documents

Banks commonly request:

• Passport and proof of address
• Proof of income (pay slips, tax records, contracts)
• Preliminary purchase agreement or contract with a developer
• Property documents and an independent valuation

For foreigners additional bank statements or certified translations may be required.

3. Down payment and loan term

Down payments can represent a significant share of the property price. Loan terms vary and are tailored to borrower needs and age. Investors often face higher down payment requirements than owner-occupiers.

4. Currency choice and exchange risk 💱

Loans can be issued in Georgian lari or foreign currencies. Keep in mind:

• If your income is in lari, borrowing in lari reduces currency exposure.
• If your revenue is in euros or dollars, foreign-currency loans may be more suitable, but compare conditions carefully.

Ask your bank about fixed payments or options to mitigate exchange fluctuations.

5. For investors and rental properties

Lenders assess the rental market, location and liquidity. Presenting a rental income plan and evidence of demand strengthens an application for an investment loan.

Practical tip: prepare a simple cash-flow forecast showing expected rents, costs and vacancy assumptions.

6. Alternatives to bank mortgages

• Developer financing and installment plans — common for new developments and sometimes interest-free.
• International banks or lenders if you have foreign accounts.
• Private loans — use caution and verify terms.

7. Step-by-step process

1. Check your budget and required down payment.
2. Get a pre-approval from one or more banks.
3. Carry out legal due diligence on the property and seller.
4. Agree final terms, include insurance if required.
5. Sign the loan and register the mortgage in the public registry.

8. Common pitfalls to avoid

• Skipping title checks and ownership history.
• Taking a loan in a different currency than your income without a hedging plan.
• Overestimating rental income or ignoring maintenance and vacancy costs.

Final practical advice

• Compare offers and request full payment schedules from each bank.
• Consider an independent mortgage broker to save time and see more options.
• If you are a non-resident, prepare bank statements and certified documents in advance.

Want help finding mortgage-ready properties or calculating payments? Start a search at https://buyhome.ge/en/search or contact us — our team will help you choose the right mortgage route and property.