Down payment: the buyer's own money, sized by a loan-to-value cap
A down payment is the part of a property's price that the buyer pays from his or her own funds rather than from a loan; for a Georgian bank mortgage its minimum is the mirror image of the National Bank's loan-to-value cap, which stops the loan at 90% of the collateral's market value in lari and 70% in a foreign currency.
The rule is National Bank of Georgia President's Order No 44/04 of 13 March 2020, the Regulation on Lending to Natural Persons, as last amended by Order No 47/04 of 27 February 2025. Article 2(1)(n) defines the loan-to-value ratio as the real-estate-secured loans divided by the market value of the real estate pledged for them. Article 4(1)(b) bars a mortgage, or a real-estate-secured consumer loan of more than 4 years, whose ratio exceeds Annex 2.
The regulation never mentions the price or a "down payment": it caps the loan, and the buyer's cash is whatever the cap leaves uncovered. Its one word for the buyer's share, in Article 1(9)(b), is თანამონაწილეობა, "co-participation". Outside the lending organisations it covers there is no legal floor: a developer may ask any first payment, including nothing.
Annex 2 in practice: the smallest share a bank may accept
| Route | Maximum loan | Minimum own share | Provision |
|---|---|---|---|
| Lari mortgage | 90% of market value | 10% | Art. 4(1)(b), Annex 2 |
| Foreign-currency mortgage | 70% of market value | 30% | Art. 4(1)(b), Annex 2 |
| Mortgage with documented income from abroad | 80% of market value | 20%, paid in cash | Art. 1(9)(b): Annexes 1 and 2 do not apply |
| Loan for entrepreneurial purposes | Annex caps do not apply | Set by the lender | Art. 1(9)(a) |
| Total debts to all lending organisations above GEL 1,000,000 or equivalent after the loan | Regulation does not apply | Set by the lender | Art. 1(3)(a) |
Article 1(9)(b) switches off both annexes, the income test included, where income from outside Georgia is confirmed and the 80% ratio is kept "ფულადი სახსრების სახით არსებული თანამონაწილეობით", by co-participation in cash. On our reading, a second pledged property cannot replace that 20%.
From 1 January 2019 the caps were 85% for lari and 70% for foreign currency. On 26 February 2025 the Financial Stability Committee "temporarily" raised the lari cap to 90%, with no end date published, so the lari floor fell from 15% to 10%.
Currency choice decides the floor. Order No 131/04 requires loans up to GEL 1,000,000 to be in lari from 1 July 2026, but Article 1(3)(b) exempts non-citizens, so a foreigner chooses between 10% down in lari and 30% in dollars or euros. Banks may ask more: compare offers in our guide to mortgage rates.
How the size of the down payment interacts with the income test and the term
Annex 1 caps the share of net monthly income that all loan payments may take.
| Net monthly income | Lari loan, or foreign-currency loan with income in that currency | Foreign-currency loan, income in another currency |
|---|---|---|
| Below GEL 1,500 | 25% | 20% |
| GEL 1,500 or more | 50% | 30% |
The payment is tested at the highest applicable fixed rate (Article 5(2)), plus 3 percentage points on an indexed rate (Article 5(8)). From 1 February 2027 the 25% band covers incomes up to GEL 2,000, and from 1 September 2027 up to GEL 2,500.
Every dollar paid up front is a dollar not borrowed, so a buyer who fails this test with 30% down may pass with 40%. Article 3(6)(a) allows up to 20 years in lari, or in foreign currency where the payments stay within the Annex 1 caps against income in that currency; otherwise a foreign-currency mortgage is limited to 10 years. Shorter terms mean larger payments. Our guide to a mortgage as a foreigner covers the application itself.
Down payments that no regulator caps: developer plans
TBC Capital, cited by BM.ge on 4 December 2025, found that in the first 10 months of 2025 developers' own instalment plans financed 73% of new-flat sales in Tbilisi, cash 20% and mortgages 7%. Order No 44/04 does not reach these plans. A former National Bank vice governor told SOVA in October 2026 that they are mostly in foreign currency, outside the income caps, possibly unreported to the credit bureau, and now offered with down payments as low as 0%. We could not confirm that any rule on them had been adopted by 1 November 2026.
Off-plan, this first payment sits with the developer before the building exists, with no off-plan law and no mandatory escrow. Whether it is an advance or earnest money (ბე, Civil Code Articles 421 to 423) depends on the contract; see our reservation and deposit guide and developer instalment plans.
Reading the term on a bank page, a loan offer and a price list
- Bank product pages. Georgian pages write "თანამონაწილეობა 0%-დან" or "15%-დან". In English, Basisbank says "Participation from 15%", Credo Bank "Down payment starting from 20% with no income verification required", and Liberty Bank "From 0% down payment - with the addition of alternative real estate as collateral", which works because the ratio counts all real estate pledged.
- A loan offer. Price, own contribution in per cent, loan amount and loan-to-value. The market value comes from the bank's valuation; the regulation does not say how it is fixed, and we could not confirm whether banks take the lower of price and valuation.
- A developer price list or contract. A "first instalment" at signing, then a schedule, often beside a price for paying in full. Check how the clause labels the payment, using our list of protective clauses in a developer contract.
- The registry extract. The payment never appears; its result does, as the bank's mortgage or a buyer's right under a preliminary agreement.
Worked example: one Tbilisi flat, six ways to fund it
A foreign buyer wants a 60 m² new-build flat in Tbilisi at Galt & Taggart's July 2026 average for white-frame developer flats, USD 1,426 per m²: USD 85,560 in all. Assume first that the valuation equals the price.
| Route | Share paid up front | Own funds | Financed |
|---|---|---|---|
| Lari mortgage at the 90% cap | 10% | USD 8,556, paid in lari | USD 77,004, borrowed in lari |
| Dollar mortgage at the 70% cap | 30% | USD 25,668 | USD 59,892 |
| Income from abroad, cash route | 20% in cash | USD 17,112 | USD 68,448 |
| Credo Bank expat terms in dollars | 40% | USD 34,224 | USD 51,336 |
| Developer plan with a 10% first payment | 10% | USD 8,556 | USD 77,004 owed to the developer on its schedule |
| Developer plan with no first payment | 0% | nothing at signing | The whole price, owed to the developer |
The 10% row is the minimum one Tbilisi project advertised in March 2026, according to Georgia Today.
Now drop the assumption. The cash needed is the price minus the cap times the market value, so on a dollar loan every USD 1,000 by which the valuation falls short adds USD 700 to the own funds. With net income below GEL 1,500 and lari earnings, the dollar loan's payment may take only 20% of income; a bigger down payment or a lari loan, capped at 25%, eases that. Our mortgage calculator shows each payment.
Down payment, LTV, earnest money and closing costs compared
| Term | Measured against | Who sets it | What happens to the money |
|---|---|---|---|
| Bank down payment (თანამონაწილეობა) | The price, in practice | The bank, above the 10%, 30% or 20% cash floor | Paid to the seller as part of the price |
| Loan-to-value ratio | The market value of the pledged real estate | The National Bank caps it; the bank may go lower | Not a payment: it limits the loan |
| Developer first payment (პირველადი შენატანი) | The plan price | The developer alone, possibly 0% | Held by the developer, often before construction ends |
| Earnest money (ბე) | A sum of money the parties agree | The parties, Civil Code Arts. 421 to 423 | Credited to the price; kept by the receiver when the giver is to blame, repaid twice over when the receiver is to blame |
| Closing costs | Fixed tariffs and bank fees | Notary, registry, valuer and bank | Paid on top of the price |
Down payment and loan-to-value add up to 100% only when the valuation equals the price. Our buying cost calculator lists the closing costs.
The term in five languages
| Language | Down payment | Other form you will meet |
|---|---|---|
| Georgian | პირველადი შენატანი | თანამონაწილეობა (regulation and bank pages) |
| English | down payment | own contribution, participation |
| Russian | первоначальный взнос | - |
| Hebrew | הון עצמי | מקדמה |
| Arabic | الدفعة الأولى | دفعة أولى |
Georgian bank pages and the regulation say თანამონაწილეობა, and the regulation calls loan-to-value სესხის უზრუნველყოფის კოეფიციენტი; this site uses პირველადი შენატანი. In Hebrew, הון עצמי is the own funds put towards a bank loan, while מקדמה is the first payment to a developer, a word also used for a reservation deposit. Arabic keeps الدفعة المقدمة for an advance.
Down payment traps that catch foreign buyers
- Reading 70% as 70% of the price. The cap applies to market value, so a low valuation raises the cash needed.
- Counting on the 20% route without cash. Article 1(9)(b) needs documented foreign income and co-participation in money.
- Paying a developer unlabelled cash. Without a clause calling it an advance or earnest money, recovery is harder.
- Forgetting the trail. Banks and notaries ask where the money came from; see proof of funds and source of funds.
To be added by the team: scans for the team to add: a redacted bank loan offer showing the price, own contribution, loan amount and loan-to-value, a redacted bank valuation summary page, and a developer price list with the first-payment line highlighted. Remove names, personal numbers and cadastral codes first.
Planning a down payment step by step
Pick the loan currency
Lari sets a 10% floor, dollars or euros 30%.
Check the income-from-abroad route
Documented foreign income plus 20% in cash.
Ask for the valuation early
The cap applies to market value, not the price.
Run the income test
Use the highest fixed rate the bank would apply.
Prepare the money trail
Statements showing where the funds came from.
Label the payment in the contract
Advance credited to the price, or earnest money.
Frequently asked questions
What is the minimum down payment for a mortgage in Georgia?
10% of market value in lari and 30% in foreign currency (Order No 44/04, Annex 2).
Must a foreigner borrow in lari?
No. Non-citizens are exempt from the lari-only rule (Order No 131/04, Article 1(3)(b)).
What does the 20% route for income from abroad require?
Confirmed foreign income and at least 20% paid as cash co-participation.
Is the minimum a share of the price or of the valuation?
Of market value, so a low valuation raises the cash you need.
Can I buy with no down payment?
From a bank, usually only by pledging another property, as Liberty Bank advertises; some developers offer 0%.
Is a developer's down payment regulated?
No. The National Bank's rules bind banks and other lending organisations, not developers.
Are notary and registry fees part of the down payment?
No. They are paid on top of the price.
Does the down payment show on the registry extract?
No. The extract shows the bank's mortgage or a preliminary agreement.
Sources
- NBG Order No 44/04, Regulation on Lending to Natural Persons, consolidated 27 February 2025, Legislative Herald, in Georgian (accessed 1 November 2026)
- PTI and LTV requirements, National Bank of Georgia (accessed 1 November 2026)
- Financial Stability Committee decision, National Bank of Georgia, 26 February 2025, and regulation on responsible lending to natural persons, 24 December 2018
- NBG Order No 131/04 on lending in lari, Legislative Herald, in Georgian (accessed 1 November 2026)
- National Bank of Georgia substantially tightens lending rules, SOVA, 30 September 2026, and Who can afford real estate in Tbilisi, SOVA, 8 October 2026
- Mortgage loan, Liberty Bank, in Georgian, and English version (accessed 1 November 2026)
- Your mortgage, Basisbank (accessed 1 November 2026)
- Mortgage loan for expats, Credo Bank (accessed 1 November 2026)
- Real estate developers may face new standards for offering instalments, BM.ge, citing TBC Capital, 4 December 2025
- A Tbilisi residential project with flexible payment terms, Georgia Today, 31 March 2026
- Tbilisi Residential Real Estate, Monthly Market Watch, July 2026, Galt & Taggart
- Civil Code of Georgia (Articles 421 to 423), Legislative Herald of Georgia
Change log
- - Glossary entry published from National Bank of Georgia Orders No 44/04 and No 131/04, the National Bank of Georgia, SOVA, Liberty Bank, Basisbank, Credo Bank, BM.ge, Georgia Today, Galt & Taggart and the Civil Code of Georgia.