A mortgage for foreigners in Georgia: is it realistic and what to expect

1. Who lends to foreigners

The major Georgian banks — TBC and Bank of Georgia — issue mortgage loans to citizens of other countries, including residents of Russia, the CIS and the EU. The decision is individual: the bank looks at citizenship, the source of income, credit history and the payment-to-income ratio.

Terms for non-residents tighten and ease with each bank's internal policy and currency regulation, so request the current rates, loan currency and limits at the time you apply — published tariffs go stale quickly.

2. Typical terms for a non-resident

The loan structure is familiar: down payment, monthly instalment, a term of ten-plus years, the apartment held as bank collateral. The differences for foreigners are in the details.

• The down payment is usually higher than for residents: most often plan for 30–50% of the property value.
• The rate for a non-resident is above the base rate; the loan may be offered in dollars or lari, and sometimes only in lari.
• Income is proven with documents from your country of residence; the bank may ask for translations and legalisation.
• The deal almost always needs to be closed in person or through a representative with broad powers — arranging a mortgage remotely is difficult.

3. What the bank looks at

The appraised value of the flat (for a new build, what you buy is a claim, and not every bank will finance an excavation-stage unit), the liquidity of the property, your income and how provable it is, your age and time to retirement, and credit history in the international bureaus where available.

One important nuance: if your income is in one currency and the loan in another, the bank prices in the currency risk and may reduce the approved amount.

4. Mortgage versus developer installments

In Batumi the main 'credit' on a new build is not a bank product: the developer grants an interest-free installment plan until handover. It requires no income proof and is available to a non-resident from day one, but is limited to the construction period and carries a hidden cost in the form of the full-payment discount.

A mortgage makes sense for finished housing, a long holding horizon, and when part of your funds must stay uncommitted. During construction, installments usually win. Compare the monthly obligation and the full cost of money, not a 'rate' in a vacuum.

5. Hidden pitfalls

First, hidden costs: the property appraisal, collateral insurance, an arrangement fee and account servicing. Second, the currency risk of the payment. Third, the collateral: until the loan is repaid the flat is yours with an encumbrance, and you cannot dispose of it freely. All three must be computed before signing the loan agreement, not after.

What the buyer representative does

GeoTrust compares bank offers with the developer's installment plan on the same unit, checks whether a mortgage markup is baked into the seller's price, and computes the full cost of money under both scenarios. The fee is reduced by any documented seller commission, so verification often costs the buyer nothing beyond what is already priced in.