How to Choose a Bank: Comparing Down Payment, Term, and Requirements

How to choose a bank for buying property — clear steps 🏦

Choosing the right bank affects monthly cash flow and the total cost of a mortgage. Beyond the headline rate you should compare down payment rules, loan term, borrower requirements, and extra fees. This guide gives practical steps and a checklist to help you decide.

1. Look beyond the interest rate 📊

• Ask for examples of total costs, including setup fees, administration fees and insurance requirements.
• Request illustrative payment schedules for different terms and down payment levels to see the real monthly burden.

2. Down payment: check flexibility and benefits 💰

• Find out the minimum allowed down payment and whether a larger down payment reduces the rate or is required for certain loan types.
• For investors, understand how down payment size affects loan-to-value rules and refinancing options.

3. Loan term: trade-offs between monthly payment and total cost ⏳

• Longer terms lower monthly payments but increase total interest paid; shorter terms do the opposite.
• Consider your income horizon and plans — a shorter term is better if earnings are stable and you can afford higher payments.

4. Bank requirements and proof of income 🧾

• Compare required documents: income statements, bank account history, employment contracts or tax returns.
• Self-employed or freelance borrowers usually need more documentation or longer credit history.

5. Flexibility and special programs ✅

• Ask about special mortgage products for certain professions or first-time buyers, and about grace periods or payment holidays.
• Clarify rules for early repayment and whether penalties apply.

6. Currency and exchange risk 💱

• If property prices or your income are in a different currency, review currency options and potential exchange risks.
• It is often safer to borrow in the currency in which you earn your income.

7. Read the fine print and test the service level 📑

• Check for hidden fees: property appraisal, account maintenance or mandatory insurance.
• Evaluate customer service, online banking usability and speed of loan approval.

8. Practical checklist before applying ✅

• collect standard documents;
• request pre-approval from several banks;
• get sample payment schedules for different terms and down payments;
• confirm all fees and early repayment rules;
• check restrictions for property type (new build vs resale).

9. Real-life examples and quick tips

• A buyer with steady employment may lower the rate with a larger down payment.
• An investor planning to rent should ensure the bank accepts rental income as proof and check any limits on rental properties.

10. When in doubt, compare and get pre-approval 🤝

• Pre-approval from multiple banks clarifies what you can borrow and on what terms.
• Use a consistent comparison framework to avoid focusing only on the headline rate.

If you want to see current listings and estimate required financing, start with property search or browse apartments to set a target budget:

• Search properties: https://buyhome.ge/en/search
• Browse apartments: https://buyhome.ge/en/apartments

Need help comparing banks or preparing documents for a mortgage? Contact BuyHome — we assist buyers and investors at every step without pressure.