Mortgage in GEL: When It’s Better Than USD

Mortgage in Lari: why currency matters 💡

Choosing a mortgage currency is one of the key decisions when buying property in Georgia. A loan in lari (GEL) can offer predictability for residents with local income, while a dollar mortgage may suit those with foreign-currency earnings. The right choice depends on income structure, risk tolerance, loan terms and your investment horizon.

When a GEL mortgage can be better ✅

• If your salary or rental income is in lari, matching your loan currency to income reduces exchange-rate risk and makes budgeting easier.
• Local-currency loans often mean fewer surprises with monthly payments if the exchange rate fluctuates.
• Banks that primarily operate locally may offer more flexible reprogramming options for GEL loans.

When a USD mortgage might suit you ⚖️

• If you receive significant income in dollars or another foreign currency, borrowing in that currency can be a natural hedge against exchange risk.
• For short-term investors with revenues or assets in foreign currency, a dollar loan may feel more comfortable — but remember this can increase exposure if the local currency weakens.

Key factors to evaluate 📊

1. Currency composition of your income and savings.
2. Interest rate type: fixed vs variable and what that means long term.
3. Bank fees, prepayment terms and penalties.
4. The expected holding period for the property — the longer the loan, the more currency fluctuations can matter.
5. Contingency plans: do you have a buffer to cover higher payments if needed?

Practical steps to decide 🧭

• Map your income and expenses by currency. If most items are in GEL, a GEL loan simplifies cash flow.
• Build a few scenarios: conservative, baseline and worst-case currency movements, and compare monthly payments under each.
• Ask the bank for an amortization schedule in both currencies to compare total cost under different rate assumptions.
• Check flexibility: can you change payment amounts, pause payments in case of hardship, or refinance without heavy penalties?

Questions to ask lenders ❓

• How will my interest rate change over time?
• Are there currency-conversion fees or other hidden costs?
• Is early repayment allowed and under what terms?
• Do you offer income-loss protection or mortgage insurance?

Example approaches (non-numeric) 🔍

• Conservative buyer with local income: choose a GEL mortgage for predictability.
• Earning abroad or receiving foreign transfers: consider a dollar mortgage if it aligns with your cash flows.
• Investor with mixed income: split strategies, reserve funds and an exit plan reduce overall exposure.

Practical tips for buyers and investors 🏡

• Compare full costs from several banks, not just headline rates.
• Keep a reserve equal to a few months of mortgage payments to handle unexpected fluctuations.
• Consider shorter fixed-rate periods if you expect rates to fall, or longer ones for predictability.

Final thoughts and empathy 🤝

Choosing the right currency for your mortgage is a personal decision that balances numbers and comfort with risk. If you feel uncertain, get a few scenario analyses and discuss options with a professional.

We can help calculate scenarios and compare mortgage offers across banks. Check available listings at https://buyhome.ge/en/search and contact BuyHome — we’ll help you find the mortgage and property that suit your needs.