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04.18.2022
Reading time: 2 minutes
Author: Sea Inside

How to get a loan in Georgia for an apartment?

What to do if there is not enough money to buy a house or apartment? Can foreigners purchase real estate with a mortgage in Georgia? The company Sea Inside will tell you the details.

A foreigner has the right to take out a loan for an apartment in any commercial organization of the country. Real estate developers often cooperate with banks and can contribute to the partner bank issuing a loan for real estate in Georgia.


Mortgage terms and rates

The conditions for non-residents are simple and differ little from the rules established for citizens. For registration, both citizens and non-residents will need the following documents:
  • Passport
  • Extract from the register of acquired property
  • Georgian bank account (opens for free in half an hour)

A document confirming the source of income. As such, a certificate from the bank on payroll, an agreement with the employer or any other document confirming financial viability can be used.
A prerequisite is to make an initial payment. For foreigners, its amount is 40% of the value of the purchased property (for citizens, the contribution amount is less than 20%). The maximum period for which local banks issue a mortgage loan is 15 years.

The law defines the maximum amount that a borrower can regularly pay for obligations. It is directly proportional to the level of income. To be more precise, the bank has the right to take no more than 25% of monthly income on loan payments. This means that if, for example, you receive a salary of $1,000, the bank will assign no more than $250 as a regular payment. Interest rates vary, but on average they range from 9% per annum (in US dollars or euros) and from 14% in the national currency lari.


Real estate in Georgia: mortgage or installment from the developer

A bank loan has an alternative that has its advantages. You can take real estate in Georgia in installments without interest. To do this, you need to find a developer who provides so-called internal installments. It means that the cost of the purchased apartment is divided into equal shares, which will have to be paid periodically – once a month or once a quarter. The obvious advantage of this payment method is that it does not require overpayments, as in the case of a mortgage, the interest payments of which significantly exceed the initial amount of the loan taken. Based on the practice of Sea Inside, interest-free installments are available in most construction companies.


Association of developers of Sea Inside. We help to buy an apartment in Batumi on credit. We'll find what you're looking for.
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