How to Compare Bank Offers: Parameter Checklist

How to Compare Bank Offers: Practical Checklist ✅

Choosing a mortgage or loan in Georgia means looking beyond the headline interest rate. Different banks treat fees, insurance, prepayment rules and currency risk differently. This checklist will help you compare offers clearly and choose the option that fits your plans.

Why careful comparison matters 🔎

A low nominal rate can be misleading. The effective cost of a loan includes fees, mandatory insurances and penalties. For long-term loans the difference in real cost can be significant even if headline rates seem close.

Key parameters to compare

1. Interest rate and its type

   • Fixed or variable? If variable, how often is it adjusted and what index is used.

2. Effective rate and all-in cost (APR)

   • Ask for an all-in calculation that includes one-time and recurring fees.

3. Upfront and recurring fees

   • Disbursement fees, account maintenance, currency conversion charges.

4. Prepayment options and penalties

   • Can you repay early without penalty? If there is a fee, how is it calculated?

5. Loan term and payment schedule

   • How does total cost change with different terms? Is there flexibility in the schedule?

6. Currency risk and loan currency

   • If your income is in a different currency, consider conversion risk and options to switch currency later.

7. Collateral and insurance requirements

   • Mortgage insurance, property valuation rules, required personal insurance.

8. Documentation and approval time

   • What documents does the bank require? How long does approval take? Is there pre-approval?

9. Bank reputation and customer service

   • Online banking quality, language support, branch availability.

Practical steps to compare offers 🧭

1. Create a comparison table: bank, rate, APR, fees, term, currency, prepayment rules.
2. Ask each bank for an all-in payment example for your specific amount and term.
3. Test three scenarios: short, medium and long term to see how total cost changes.
4. Stress-test the loan: simulate rising variable rates or currency shifts if applicable.
5. Evaluate convenience: how often you must visit a branch, what documents are needed.

Examples and scenarios ✍️

• If you plan to repay early, a lower rate with high prepayment fines may be worse than a slightly higher-rate loan with no penalties.
• If your income is foreign currency, reducing currency risk may be more important than the headline rate.

Common mistakes to avoid ⚠️

• Comparing only the nominal interest rate.
• Forgetting to include mandatory insurances and bank fees.
• Not asking about hidden charges like conversion or maintenance fees.

Negotiation tips 🤝

• Show competing offers — banks often match or improve terms for good clients.
• Ask about fee waivers or discounts if you use other bank products or buy through an agent.
• Request a written all-in cost estimate for your scenario.

Documents to prepare 📁

• ID and proof of income.
• Property papers or preliminary purchase agreement if available.
• Additional financial records for self-employed borrowers.

Final thoughts and next steps

Comparing bank offers is an analytical process: build a table, request all-in calculations and check flexibility. If you are buying property in Georgia and need help collecting offers, preparing documents or assessing risk, we can help. Start by searching properties or apartments to understand required financing: https://buyhome.ge/en/search and https://buyhome.ge/en/apartments

Contact BuyHome — we will help you choose the best bank offer and guide you through the purchase with confidence.