Mortgage Loans in Georgia in 2026: Terms, Interest Rates, and Options for Foreigners

Mortgage financing in Georgia is available to both Georgian citizens and foreign nationals. However, lending requirements vary depending on the bank, the applicant’s status, and the source and currency of their income.

Let us take a closer look at who can obtain a mortgage and what terms Georgian banks offer.

Who Can Get a Mortgage in Georgia?

Citizenship, residence permit status, employment, or business registration does not in itself guarantee approval. The bank must establish that the applicant has a stable income and is able to meet their financial obligations over the entire loan term.

The main categories of borrowers are:

• Georgian citizens. Standard mortgage loans are offered by banks including TBC Bank, Bank of Georgia, and Liberty Bank. Applications are assessed based on verified income, credit history, and the value of the property.
• Foreign nationals. Several Georgian banks provide mortgage loans to foreign applicants. In particular, Credo Bank works with expats, TBC Bank lists mortgages among the services available to them, and Terabank accepts applications from foreign and dual citizens who receive income abroad.

How Banks Assess Borrowers

When reviewing an application, the bank considers the amount, regularity, and source of the applicant’s income, as well as the currency and country in which it is received. The assessment is based on net disposable income after taxes and payments on existing loans and other financial obligations.

Under the requirements of the National Bank of Georgia, if a borrower’s net monthly income is below GEL 1,500, payments on a loan in lari must not exceed 25% of their income. For an income of GEL 1,500 or more, the limit increases to 50%. Stricter limits apply when the loan is issued in a foreign currency that does not match the currency of the borrower’s income: 20% and 30%, respectively. Banks may also set lower limits under their internal lending policies.

Banks also consider the length of employment or business activity, credit history, the applicant’s age, the size of the down payment, and the liquidity of the property being purchased. If the borrower’s income is insufficient, the bank may suggest reducing the loan amount, increasing the down payment, or adding a co-borrower.

Employment income can be confirmed with an employment contract, a letter from the employer, and bank statements. Individual entrepreneurs and business owners may be asked to provide tax returns, turnover records, client contracts, and bank statements. Applicants earning income abroad may need to submit a foreign employment agreement or service contract, account statements, and documents confirming the source and regularity of the payments. Foreign documents often need to be translated into Georgian.

Mortgage Terms and Conditions

Mortgage terms depend on the bank, the borrower’s status, the currency of their income, the size of the down payment, and the property being purchased. The loan amount is determined individually based on the property’s value and the borrower’s ability to repay. Some banks offer mortgages of up to GEL 500,000 or the equivalent in a foreign currency.

The required down payment depends on the currency of the loan, the property valuation, and the bank’s lending criteria. The National Bank of Georgia caps the loan-to-value ratio at 90% for mortgages denominated in lari and 70% for mortgages denominated in a foreign currency. Borrowers must therefore provide at least 10% of the property’s value from their own funds for a lari-denominated loan and at least 30% for a foreign-currency loan. Banks may impose a higher down payment requirement.

The loan amount is calculated based on the appraised value of the property rather than its purchase price. For example, if an apartment is sold for GEL 250,000 but the bank values it at GEL 220,000, the available loan amount will be calculated based on GEL 220,000. The buyer will have to cover the difference with their own funds.

Nominal mortgage rates start at approximately 11.8% in lari, 8% in US dollars, and 7.5% in euros. Effective interest rates, which include mandatory borrowing costs, start at approximately 12.7%, 9.1%, and 8.5%, respectively. The final rate depends on the borrower’s profile, the loan term, the down payment, and how the income is documented.

The nominal interest rate determines the interest charged on the principal amount of the loan. The effective interest rate also includes mandatory costs associated with arranging and servicing the mortgage. Therefore, the effective rate provides a more accurate measure of the total cost of borrowing.

Mortgages in lari may be issued for up to 15–20 years, while loans in US dollars and euros are more often limited to 10 years. Banks may offer shorter repayment terms to foreign citizens.

The bank may also require insurance for the mortgaged property and, in some cases, life and health insurance for the borrower.

A mortgage can be repaid in full or in part before the end of the loan term. As a general rule, the early repayment fee must not exceed 2% of the outstanding principal, although the exact amount depends on the type of interest rate and the remaining loan term. Before making a partial early repayment, ask the bank whether it will reduce the loan term or the monthly payment.

Mortgage Requirements for Foreign Citizens

A residence permit is not a universal requirement for obtaining a mortgage in Georgia. When reviewing an application, banks consider the borrower’s citizenship, country of residence, source of income, and ability to document the origin of the funds.

A Georgian bank account is generally required to receive and repay the loan. Some stages of the process may be completed remotely, while the signing of documents and registration of the transaction may be handled by a representative under a notarized power of attorney.

Foreign documents may need to be translated into Georgian, notarized, legalized, or apostilled. The exact list of required documents should be confirmed with the chosen bank.

Conclusion

Before choosing a property, it is advisable to obtain mortgage pre-approval and determine how much you can borrow. When comparing offers, consider not only the nominal interest rate but also the effective rate, loan currency, down payment, repayment term, and insurance requirements.

The bank makes its final decision after assessing the borrower and appraising the property. Before paying a non-refundable deposit to the seller, it is therefore advisable to include a clause in the agreement allowing the deposit to be refunded if the mortgage application is declined.