Subsidized mortgage loan from terabank

If the family/single parent/widow has a child under the age of 1 born after September 1, 2021 at the time of taking the loan (in this case, the subsidy will be provided by the agency in the following amount: minus 3.5% of the refinancing rate set by the National Bank of Georgia, but no more than 6% in the amount of).
You may obtain a subsidized mortgage loan by presenting either salary or rent, money transfers or revenue from self-run enterprises.

Details and frequently asked questions about the subsidized mortgage loan program
About the program

  • The program offers mortgage interest co-financing from the government over the course of 5 years. 

Beneficiary of the program and conditions of subsidy are defined as follows::

  • If the family/single parent/widow has a child under the age of 1 born after September 1, 2021 at the time of taking the loan (in this case, the subsidy will be provided by the agency in the following amount: minus 3.5% of the refinancing rate set by the National Bank of Georgia, but no more than 6% in the amount of), or
  • A family, single parent, or widow with three or more children at the time of loan application has the opportunity to enroll in the program even after September 1, 2022, provided they have a child or adopt one. Furthermore, if such a borrower is already an active participant in the program, they are eligible to utilize it for a second time within the program's maximum limit of 200,000 GEL if they have and/or adopt four or more children subsequent to joining the program. In this scenario, the agency will provide a subsidy equivalent to minus 1.5% of the refinancing rate established by the National Bank of Georgia, capped at 8%., or
  • To a family/single parent/widow who at the time of taking the loan has a child whose adoption was carried out after September 1, 2021 (in this case, the agency will provide a subsidy in the following amount: minus 3.5% of the refinancing rate set by the National Bank of Georgia, but no more than 6 in the amount of %).

Additional mandatory provisions for the beneficiary

  • If the beneficiary is a family, spouses must be officially married.
  • The borrower (at least one spouse in case of a family) must be a citizen of Georgia.
  • The borrower may have dual citizenship, but they must be a citizen of Georgia as well. 
  • The borrower may not be a citizen of Georgia only if their spouse is, regardless of whether or not the latter will be co-signing the loan.
  • Only parents of an underage child/adopted child/stepchild are eligible for the program, provided the child is officially under 18 at the time of applying with the agency.

Purpose of the loan

  • Acquisition
  • Construction
  • The loan may cover acquisition of non-residential property (e.g.: parking garage, basement) only if the borrower acquires it with the apartment/residential property. 

Loans may be disbursed to refinance an existing loan obtained within this program (subsidized mortgage loans).
Eligible sellers

  • An apartment may be acquired at a residential building constructed by a real estate development company;
  • Private parties;
  • The borrower may choose to construct a house independently. 

Loan amount and currency

  • Maximum amount of an eligible loan for the program is GEL200,000. However, actual value of residential property may exceed GEL200,000.  
  • If the value of property exceeds GEL200,000, according to the subsidized loan, it is possible to determine GEL 200,000.
  • Loans will be disbursed in local currency. 

Restrictions and limitations of the subsidy program:

  • If the borrower (both spouses, if the borrower is a family) is not a citizen of Georgia. In case of families, at least one spouse should be a citizen of Georgia. 
  • If the borrower is a beneficiary of the Mortgage Support Mechanism program approved by the Government of Georgia Resolution No. 387 of June 25, 2020.
  • No refinancing will be available for loans disbursed before 1 September 2021. 

Subsidy shall be terminated under the following circumstances:

  • Upon fulfillment of contractual obligations by the agency, commercial bank and the program beneficiary;
  • Upon failure of the program beneficiary to fulfill the terms of an agreement with a commercial bank. Namely, if the borrower fails to make the scheduled minimum payment within 120 (one hundred and twenty) days of the due date and/or upon receipt of a writ of seizure;
  • Upon pursuit of restructuring/refinancing of the loan in violation of provisions of the mortgage subsidy program;
  • Upon annulment of mortgage registration;
  • Termination of the loan agreement for any reason governed by the Georgian legislation. 

Mandatory documentation to determine eligibility for subsidy:

  • Certificate of marital status from the Public Service Development Agency; 
  • Marriage certificate;
  • Child’s birth certificate;
  • For parents of an adopted child, document of adoption (if available/applicable);
  • For widow(er)s, death certificate of the spouse;
  • For single parents, an official certificate of such status.

Example of calculation of subsidy interest benefit:

When the commercial bank approves the loan under this program, the agency subsidizes the interest rate charged on the loan  within the scope of the program, within 60 months after the issuance of the loan (in addition, if the term of the loan is less than 60 months, the agency will subsidize the annual interest rate charged on the issued loan for the term of the issued loan), minus 3.5%, but no more than 6% from the refinancing rate set by the National Bank of Georgia (if the borrower has 1 or 2 children, 1.5%, but no more than 8% if the borrower has 3 or more children).

 

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