The most expensive misunderstanding in Georgian property finance fits in one sentence: the bank lends against the appraised value, not the price you agreed with the seller. Buyers plan their deposit around the purchase price, the bank’s appraisal comes in lower, and suddenly there’s a five-figure gap to fill at the worst possible moment. If you’re planning to buy in Tbilisi with financing, as a local or from abroad, here’s how mortgages here actually work in 2026, without the brochure gloss.
The 80% Rule, Properly Understood
Georgian banks typically finance up to around 70-85% of a property’s appraised value; 80% is the common working figure. The sequence that matters:
- You agree a price with the seller, say $100,000.
- The bank orders (or accepts) a certified appraisal. Suppose it values the apartment at $92,000.
- The bank lends ~80% of $92,000, about $73,600. Your cash requirement just grew from $20,000 to $26,400.
The defense is simple: know the appraisal picture before you commit. A certified appraisal ahead of signing tells you exactly what a bank will see, and if it’s below your agreed price, that’s not a crisis, it’s negotiation evidence with the seller. Tbilisi Home is certified to carry out appraisals, which is why our buyers rarely meet this surprise.
What Mortgage Terms Look Like in 2026
- Currencies: loans are issued in GEL or USD, with an important rule: smaller loans (below the National Bank’s threshold, long set at 200,000 GEL) must generally be issued in GEL. Larger loans can be in USD.
- Rates: vary with the market and your profile. As a working orientation in 2026, USD mortgages have run in the high single digits and GEL mortgages several points above that. Confirm live rates; they move.
- Terms: typically up to 10-20 years, with age caps at maturity.
- The big three banks (TBC, Bank of Georgia, Liberty) dominate mortgage lending; terms are broadly similar, service and speed differ.
- Income requirements: banks lend against documented, preferably Georgian-sourced income. Payment-to-income limits mean your loan size is capped by what you can show, not what you feel you can afford.
Foreign Buyers: The Honest Picture
Foreigners can own property in Georgia freely (full guide here), but borrowing here is a different matter. Georgian banks are conservative with non-resident income:
- With Georgian residency and local income, you’re a normal applicant.
- With foreign income only, expect stricter terms: larger down payments (often 30-50%), more documentation, and not every bank will engage. It’s possible; it’s not the advertised rate sheet.
- Many foreign buyers therefore buy cash in Georgia and finance at home, or use developer installment plans on new builds, which function as interest-bearing financing without a bank.
Mistakes Mortgage Buyers Make in Georgia
- Budgeting off the purchase price instead of the appraised value: the gap problem above.
- Ignoring currency risk: earning GEL and borrowing USD (or vice versa) turns exchange-rate moves into payment shocks. Match the loan to your income currency when you can.
- Skipping pre-approval and going property-first. Sellers here move fast, and “waiting on my bank” loses deals.
- Forgetting the side costs: appraisal, mandatory property insurance, registration; small individually, real together.
- Not inspecting because “the bank checked it.” The bank’s appraisal protects the bank’s collateral, not your renovation budget; a buyer’s inspection is a separate, worthwhile layer.
The Process, Step by Step
- Pre-approval: take your income documents to one or two banks and learn your realistic ceiling before viewing anything.
- Find the property and agree terms, with an appraisal-informed price.
- Bank appraisal and approval: the bank confirms value and finalizes the offer.
- Sign, insure, register: purchase agreement, the bank’s mortgage registered at the Public Registry, insurance in place; the mechanics are fast in Georgia (full process here).
- Draw down and move in.
How Tbilisi Home Helps Financed Buyers
Tbilisi Home is a real estate agency in Tbilisi, Georgia that works with financed purchases end to end: pricing against real comparables so your offer survives the bank’s appraisal, running the certified appraisal before you commit, coordinating with the bank’s process, and inspecting the property for your interests rather than the lender’s.
Planning to buy with a mortgage? Message us on WhatsApp. Tell us your budget and income situation, and we’ll tell you what’s realistically financeable and which properties will appraise where they’re priced.
Frequently Asked Questions
How much will a Georgian bank lend on a property?
Typically around 70-85% of the property’s appraised value, commonly ~80%. The loan is sized on the appraisal, not the purchase price, which is why knowing the appraised value before committing matters so much.
Can foreigners get a mortgage in Georgia?
It’s possible but harder: banks favor Georgian residency and local income. Non-residents face bigger down payments (often 30-50%) and more documentation, so many foreign buyers pay cash or use developer installment plans instead.
What are mortgage rates in Georgia in 2026?
Rates move with the market: as a rough orientation, USD loans have run in the high single digits and GEL loans several points higher. Get live quotes from TBC, Bank of Georgia, or Liberty, and match the currency to your income.
Why did the bank offer me less than the purchase price allows?
Because the certified appraisal came in below your agreed price, and the bank lends a percentage of appraised value. Either renegotiate the price with the appraisal as evidence, bring more cash, or walk away.
Do I need my own inspection if the bank appraises the property?
Yes: the appraisal establishes market value for the bank’s collateral; it is not a condition survey. A buyer’s inspection covers structure, wiring, plumbing, and the repair costs the appraisal ignores.