The new subsidized mortgage loans can be disbursed on the following terms:

 

If you have three or more minor children, one of whom is up to 1 year old, the co-financing rate shall be determined as follows:

  • The NBG refinancing rate as of the date of the loan disbursement- 1,5% but no more than 8%
     

If you have (no more than) two minor children, one of whom is up to 1 year old, the co-financing rate shall be determined as follows:

 

  • The NBG refinancing rate as of the date of the loan disbursement- 3,5% but no more than 6%
     

Note:  

  • The maximum amount to receive within the co-financing: 200,000 GEL
  • The loan purpose: real estate acquisition/construction
  • The maximum tenor of the mortgage loan: 240 months
  • The maximum term of co-financing: 60 months of the loan disbursement
  • If the loan is disbursed for less than 60 months, the subsidy applies for maximum the given (loan) tenor whether the loan tenor is changed (increased) subsequently or not.

Who is eligible

The applicant must be a Georgian citizen (during the effective term of the subsidy).

  •  Married;
  • Single parent;
  • Not officially married;
  • Widow(er);

Loan Purpose

Buying / building an apartment/house (from a developer or an individual);

Documents Required

When applying for the loan:

A married person must submit:

  • Marriage Certificate; 

A single parent must submit:

  • A certificate that he/she is not officially married;

A widow(er) must submit:

·    Their spouse's Death Certificate;

Information about the children:

  • The children's Birth Certificates;
  • For an adopted child – a relevant certificate; 
  • For a stepchild – their birth certificate can be used as proof of status.

 

!! The aforementioned documents can be obtained in the Public Service Hall of Georgia.

Apart from these certificates, commercial banks may also require other documents as part of the application package.

What else to note

The property to purchase/build must be mortgaged in favour of the bank during the effective term of subsidy; 

 

No grace period/rescheduled interest is allowed on the loan.

 

Co-financing is not available for the borrowers who benefited from the Mortgage Credit Support Mechanism Program 2020.

 

If you have one child (adopted child) up to 1 year old

 

Spouses/couples (either jointly or separately) can apply once only, irrespective of the amount of loan drawn under the program.

If you have three or more minor children, one of whom is up to 1 year old, you can apply for the loan once again.

 

If after joining the program you have and/or adopt your fourth child (or more)

You can apply for an additional loan. Your total subsidized loans must not exceed 200 000 GEL.

Multi-child families/families with a new-born child subsidized program examples

Terms and examples of Produce in Georgia's (hereinafter the State/the Agency) share in co-financing of loans disbursed under the subsidy program for multi-child families/families with a new-born child (on the approval of the state programme of subsidized mortgage loan):

 

If the NBG (hereinafter the National Bank of Georgia/NBG) Refinancing Rate is 10% as of the date of payment of the scheduled interest on the loan, the state's share in co-financing will be determined as follows:

Co-financing for multi-child families: 10% (Refinancing Rate) - 1.5% (no more than 8 %) -> 8%

                Co-financing for families with a newborn child: 10% (Refinancing Rate) - 3.5% (no more than 6%) ->6%

 

 

 If the NBG Refinancing Rate changes during the loan maturity period to 9%, the state's share in co-financing will change to be determined as follows:

Co-financing for multi-child families: 9% (Refinancing Rate) - 1.5% (no more than 8 %) -> 7.5%

                Co-financing for families with a newborn child: 9% (Refinancing Rate) - 3.5% (no more than 6%) ->5.5%

 

If the NBG Refinancing Rate again increases during the loan maturity period e.g. to 13%, the state's share in co-financing will be determined as follows:

Co-financing for multi-child families: 13% (Refinancing Rate) - 1.5% (no more than 8 %) -> 8%

                Co-financing for families with a newborn child: 13% (Refinancing Rate) - 3.5% (no more than 6%) ->6%

 

 

               

Despite the change (decrease/increase) of the NBG Refinancing Rate, the state's maximum share in co-financing will be determined as follows:

Co-financing for multi-child families: 8%

                Co-financing for families with a newborn child: 6%

 

 

If during the loan maturity period the NBG Refinancing Rate drops to 5%, the state co-financing will be temporarily suspended and resumed once the NBG Refinancing Rate increases by more than 5%.

 

Examples:

A borrower has the loan in the amount of 200 000 GEL disbursed at the blended rate: 11.4% - during the fixed-rate period and 12.2% - during the indexed-rate period (the Public Index as of the signing of the Agreement plus the Bank interest), as a result of the NBG Refinancing Rate changes the values will change as follows: 

 

  1. If the Refinancing Rate is 10%, the total monthly payment during the fixed period is - 2000 GEL:

Co-financing for families with a newborn child:

  • Principal – 180 GEL
  • Insurance - 100 GEL
  • The Client's share in interest: 5.4% - 800 GEL
  • The Agency's share in interest: 6% - 920 GEL

Co-financing for multi-child families:

  • Principal – 180 GEL
  • Insurance - 100 GEL
  • The Client's share in interest: 3.4% - 600 GEL
  • The Agency's share in interest: 8% - 1120 GEL

 

If the Refinancing Rate decreases to 9%, the total monthly payment during the fixed-rate period remains the same - 2000 GEL, though the Client's and the Agency's respective shares in the payments (the shares in the interest payable) change:  

Co-financing for families with a newborn child:

  • Principal – 180 GEL
  • Insurance - 100 GEL
  • The Client's share in interest: 5.9% - 900 GEL
  • The Agency's share in interest: 5.5% - 820 GEL

Co-financing for multi-child families:

  • Principal – 180 GEL
  • Insurance - 100 GEL
  • The Client's share in interest: 3.9% - 680 GEL
  • The Agency's share in interest: 7.5% - 1040 GEL

 

  1. If the loan is in the indexed-rate period and the current Refinancing Rate is 10%, the loan interest - 12.2%, the total monthly payment - 2500 GEL:

 

Co-financing for families with a newborn child:

  • Principal - 250 GEL
  • Insurance - 100 GEL
  • The Client's share in interest: 6.2% - 1200 GEL
  • The Agency's share in interest: 6% - 950 GEL

             Co-financing for multi-child families:

  • Principal - 250 GEL
  • Insurance - 100 GEL
  • The Client's share in interest: 4.2% - 700 GEL
  • The Agency's share in interest: 8% - 1450 GEL

 

If the Refinancing Rate decreases to 9%, in the indexed-rate period both the monthly interest payable on the loan as well as the borrower's and the Agency's respective shares in interest will change. The loan interest will be 11.2%, and the total monthly payment -  2200 GEL:

Co-financing for families with a newborn child:

  • Principal - 250 GEL
  • Insurance - 100 GEL
  • The Client's share in interest: 5.2% - 900 GEL
  • The Agency's share in interest: 6% - 950 GEL

             Co-financing for multi-child families:

  • Principal - 250 GEL
  • Insurance - 100 GEL
  • The Client's share in interest: 3.2% - 500 GEL
  • The Agency's share in interest: 8% - 1350 GEL

Developers subsidized program examples

Terms and examples of Produce in Georgia's (hereinafter the State/the Agency) share in co-financing of loans disbursed under the subsidy program for developers (on the approval of the State Program for Mortgage Credit Support Mechanism):

 

  1. If the loan is disbursed at the fixed rate and/or the loan is disbursed at the blended rate and the fixed-rate period starts and the NBG Refinancing Rate as of the date of the loan disbursement was 10%, the state's share in co-financing will be determined as follows:     

                10% (Refinancing Rate) - 4.25% (no more than 4%) -> 4%.

And, if the NBG Refinancing Rate as of the date of the loan disbursement was 8%, the state's share in co-financing will be determined as follows:

                8% (Refinancing Rate) - 4.25% (no more than 4%) -> 3.75%.

Despite the change of the NBG Refinancing Rate during the fixed-rate period, the Agency's share in co-financing will not change (the NBG Refinancing Rate as of the date of the loan disbursement will apply for the purposes of refinancing).

 

  1. If the loan is disbursed at the indexed rate and/or the loan is disbursed at the blended interest rate and the indexed-rate period starts, the NBG Refinancing Rate as of the date of the Agency co-financing will change (increase/decrease) by the same percent as the NBG Refinancing Rate.

Example:              

If the NBG Refinancing Rate during the indexed-rate period was 10%, the agency's share in co-financing will be 10% (the Refinancing Rate) – 4.25% (no more than 4%) -> 4%.

If the NBG Refinancing Rate changes (increases/decreases) after the loan disbursement/the change of the interest-rate (during the loan maturity period), the Agency's percent (share) in co-financing will also increase/decrease.

Example:

If the NBG Refinancing Rate changes to 8% after the loan disbursement/the change of the interest rate (during the loan maturity period), the Agency's share in co-financing will be determined as follows: 8% (Refinancing Rate) – 4.25% (no more than 4%) -> 3.75%.

If the NBG Refinancing Rate again increases during the loan maturity period e.g. to 9%, the state's share in co-financing will be determined as follows: 9% (Refinancing Rate) - 4.25% (no more than 4%) -> 4%.

Besides, if during the loan maturity period the NBG Refinancing Rate changes to 5%, the state co-financing will be temporarily suspended and resumed once the NBG Refinancing Rate increases by more than 5%.
Examples:

A borrower has the loan in the amount of 135 000 GEL disbursed at the blended rate: 12.5% - during the fixed-rate period and 13.75% - during the indexed-rate period (the Public Index as of the signing of the Agreement plus the Bank interest), and the NBG Refinancing Rate at the loan disbursement was 8%, the amount of the payment by the Client/the State is determined as follows:  

  1. If the loan was disbursed at the fixed rate, the total monthly payment is 2000:
  • Principal - 550 GEL
  • Insurance - 90 GEL
  • The Client's share in interest: 8.5% -1000 GEL
  • The Agency's share in interest: 3.75% - 360 GEL

 

Despite the change of the NBG Refinancing Rate during the fixed-rate period, the Agency's share in co-financing will not change (the NBG Refinancing Rate as of the date of the loan disbursement will apply for the purposes of refinancing). The total monthly payment(s) will not change either.

 

When the loan moves to the indexed-rate period and the Refinancing Rate is 8% and the loan interest rate – 13.75% as of the date of the interest rate change, the total monthly payment is 2600 GEL:

  • Principal - 600 GEL
  • Insurance - 100 GEL
  • The Client's share in interest: 10% -1400 GEL
  • The Agency's share in interest: 3.75% - 500 GEL
  1. If the loan is disbursed at the indexed rate, the Refinancing Rate is 10% and the loan interest rate– 15.75% at the loan disbursement, the total monthly payment on the loan is 2800 GEL:
  • Principal - 600 GEL
  • Insurance - 100 GEL
  • The Client's share in interest: 11.75% -1550 GEL
  • The Agency's share in interest: 4% - 550 GEL

 

If the Refinancing Rate decreases to 9%, both the monthly interest payable on the loan (amount), as well as the Borrower's and the Agency's respective share(s) in interest will also change: the loan interest will be 14.75% and the total monthly payment – 2700 GEL.