TBC JOINS GOVERNMENT'S SUBSIDY PROGRAMME

Please be informed that from 1 July 2020, TBC joins the government's mortgage loan subsidy programme. 
The programme offers customers an opportunity to apply for a mortgage loan with 4% annual interest subsidy effective for 5 years.

The mortgage subsidy only applies to apartments purchased from development companies.

The maximum loan amount is 200 000 GEL and the maximum loan tenor is 240 months.

The minimum down payment is 10%.

Applications for loan interest subsidy can be submitted through 31 December 2020. 
If apartment price exceeds the maximum loan amount (200 000 GEL), the subsidy will apply to 200 000 GEL provided the client has paid the rest of the apartment price upfront (as a down payment).

If the loan collateral is not sufficient, the programme also offers 20% government guarantee.

The deadline for government guarantee applications is 20 December, 2020.
The subsidy programme also applies to refurbishment/remodelling services provided by the same development company.

The Mortgage Centre and TBC Concept offer clients special conditions and discounts on projects implemented by the Bank's partner development companies. For details, please visit link.

For more information, please contact your private banker or call the Concept Centre at +995 322 27 27 00 
Only  resident Georgian citizens can apply for the subsidy.

 

Frequently asked questions: 

  • Will the subsidy apply to property purchase above 200,000 GEL? 
    For example, if the price on an apartment is 300,000 GEL, the maximum of 200,000 GEL can be disbursed on subsidy terms, with the purchased property pledged as collateral. In this case, the client's down payment will either increase to 100,000 GEL, or a separate 100,000 mortgage loan will be disbursed for the same purpose. 
    If the loan is disbursed for the purchase of under-construction property, the property will be mortgaged after the construction is completed and it is eligible for mortgage.  

  • Does the government programme apply to external refinancing? 
    Yes, if the total of the outstanding balance, accrued interest and early repayment fee does not exceed 200,000 GEL. Refinancing may also qualify for the government guarantee if the total amount to be refinanced does not exceed 200,000 GEL. 

  • Can a client choose the payment day to match with his/her payday?
    Yes, clients may choose any day from the 1st through the 26th on which to make payments. 

  • What can be the reasons for subsidy denial? 
    The Agency may deny the subsidy to an individual if at the time of signing the co-funding agreement, the client is included in the Debtor Registry and/or some of his/her taxes are overdue. 

  • What is the deadline for mortgage subsidy applications? 
    The subsidy offer is effective through 31 December, 2020 (by which date the loan must have been fully disbursed). The bank can apply to the Agency for government guarantee on a mortgage loan through 20 December, 2020.

  • What is the maximum subsidy rate? 
    The subsidy rates are up to 4% of the annual interest charged by the bank. The subsidy will be effective for 5 years from taking the loan. 

  • What is the minimum client participation when applying for the government guarantee? 
    The guarantee will only be issued to borrowers who have made a down payment of at least 10% of the purchased property value before applying for the government guarantee.

  • Does the government guarantee component apply to joint mortgage projects of Tbilisi and Batumi Mortgage Centres? 
    Yes. The guarantee will be effective for no longer than 5 years from the disbursement of the mortgage loan. 

  • Does the subsidy programme apply to refurbishment/remodelling? 
    The government programme supports the purchase of an apartment from a developer. The subsidy will apply to loans disbursed for apartment purchase and refurbishment if refurbishment is offered by the same developer and the respective expenses are included in the invoice. The loan should not exceed 200,000 GEL even if its purpose includes refurbishment. 

  • May home purchase/ refurbishment under the subsidy programme include the purchase of a garage, a parking lot, a basement and/or an attic?
    Yes, if these are purchased together with an apartment. Anyway, the maximum loan amount will be 200,000 GEL.

  • How will the subsidy be reflected on monthly mortgage payments? 
    The repayment schedule will provide for the subsidized amount and for 5 years, the client will only have to pay the portion of interest after the subsidy.