Mortgage for New Builds vs Resale: How Bank Requirements Differ

Mortgage for new build vs resale: what to expect 🏗️🏠

Buying property in Georgia? Banks do not treat new-builds and resale properties the same way. Understanding the differences helps you prepare the right documents, manage timelines and reduce risks.

Main differences at a glance

• Legal status: new-builds rely on developer contracts and construction permits, resale properties depend on clear ownership history.
• Down payment: lenders may require a stricter down payment approach for new-builds, especially before handover.
• Appraisal focus: new-builds are assessed on developer reputation and project documentation; resale is assessed on condition and legal transparency.
• Insurance needs: construction-stage risks can trigger additional insurance for new-builds.

Documents to prepare 📑

Both purchase types need ID and income proof. Expect these additional items:

• New-build: purchase agreement with the developer, permits, project plans, handover schedule and company credentials. Banks will check the developer’s track record and financial stability.
• Resale: proof of ownership, registry extracts, history of transactions, clearances of debts or liens, spousal consent if required.

Tip: ask the developer or seller for full documentation early — this speeds up bank processing.

Valuation and inspections 🧾

Banks order independent valuations. For new developments, value depends on project specs, location, and developer credibility. For resale, the apartment’s physical condition and legal cleanliness are critical.

Practical step: consider an independent technical inspection or a renovation estimate if the resale needs work. This helps set realistic expectations with the bank.

Loan conditions: flexibility and limits 🔒

• Interest and programs: lenders price risk. Sometimes new-builds carry tighter conditions unless the project partners with banks offering special packages.
• Terms and timing: loan disbursement may depend on the construction stage; some programs allow staged financing until ownership transfer.

Always ask your bank about developer-partnered programs — these can simplify approval and paperwork.

Legal risks and how to reduce them ⚖️

• New-build: verify construction permits, land registration and the developer’s legal record. Request sample contracts and clear handover terms.
• Resale: check for encumbrances, court cases or outstanding utility debts via registry extracts and seller declarations.

Checklist:

• Obtain registry extracts and property plans.
• Order legal review of the sales contract.
• Agree a secure payment and transfer scheme.

Practical tips for buyers and investors 💡

• Prepare documents in advance to accelerate loan approval.
• Compare multiple banks — conditions and insurance demands vary.
• If the developer offers a bank program, evaluate whether it truly reduces costs or adds commitments.
• For investment purchases, factor in renovation needs and possible vacancy time.

Step-by-step approach

1. Identify the property type and gather initial documents.
2. Verify developer or seller documentation.
3. Submit bank applications and arrange valuation.
4. Clarify all insurance and technical requirements.
5. Sign the loan and complete settlement at handover.

Final note — realistic and supportive ❤️

The mortgage process can feel complex, especially if you’re new to buying property abroad. That’s normal. Take time to understand each clause and seek professional checks when in doubt.

If you want help checking developer documents, estimating renovation costs, or comparing mortgage programs, we can assist. Start searching listings or contact us: https://buyhome.ge/en/search or https://buyhome.ge/en/apartments

Contact BuyHome — we’ll help you choose the right mortgage strategy and property.