Payment plan vs mortgage: buying an apartment in Batumi in instalments

There are two ways to pay for an apartment in Batumi in instalments: on the developer's schedule or with a bank loan. In the first case you are financing the construction and depend on the developer. In the second you borrow from a bank and pay for the money in interest. The payment plan vs mortgage choice starts with what apartment you are buying, and from whom.

How a developer payment plan works

Batumi new builds are often sold interest-free, but this has not become a market rule. Each developer decides how much you pay up front, over what term and on what schedule, and some don't offer a payment plan at all.

Zero interest in the contract doesn't always mean the payment plan is free. Ask for the price for full payment: if it is lower, the difference is what the payment plan costs. The contract also sets the currency of the payments and how amounts are recalculated, if they are.

In the usual payment plan there is no escrow, and payments go straight to the developer. We check the contract to see whether the project has a dedicated bank account or a bank guarantee. The developer and the contract need checking before the first payment, not after.

How a bank loan works

A mortgage is needed when there is no payment plan or its term is too short: for a resale apartment, for a finished apartment from a private seller, and sometimes for a completed new build. Until the loan is repaid, the apartment is pledged to the bank as security, and this shows in the Public Registry extract.

The currency of the loan is limited by a rule of the National Bank of Georgia: from 1 July 2026, loans of up to 1,000,000 GEL are issued only in lari. The rule doesn't apply to foreigners, meaning borrowers without Georgian citizenship, so a foreign-currency loan is still possible for them. We check with the bank, for your situation, whether it will lend to you, what down payment it needs, and what rate, term and proof of income it asks for.

If the loan is in lari after all and your income is in dollars or euros, the payment in your currency will change with the exchange rate. Work this out before you sign, not after the first jump in the rate.

Where the risk lies and who carries it

With a payment plan, the main risk is the construction. The building may be completed late, and what happens then depends on the contract: whether there is a penalty, whether you can terminate the contract and get your money back, and how quickly. The less has been built on the site, the longer your money is working for someone else's project.

With a mortgage, the risk is on your side. The apartment already exists and is registered in your name, but you pay the bank's interest and fees and are responsible for every payment. The total cost of borrowing is usually higher than with an interest-free payment plan, but the risk of an unfinished building doesn't affect you: you are buying something that is already built. If your income falls, you still have to pay the bank, so keep a reserve for several months of payments separately.

What to check in a payment plan contract

We read the contract with the developer before the first payment. We look for:

• The payment schedule and whether it is tied to construction stages
• The completion date and the penalty for delay
• What happens if you pay late: penalty interest, termination, a refund of what you have paid
• What the frame condition includes when the apartment is handed over
• Whether you can assign the contract or sell the apartment before paying in full
• When and how your ownership will be registered with the Public Registry

Payment plan vs mortgage: what to choose in your case

If the apartment is in a building under construction by a developer that has passed our checks, a payment plan beats a loan: there is no interest, and whether a bank would lend for an unfinished building is something we confirm with the bank. If the building is completed, we compare the developer's payment plan, if there is one, with a loan and with the price for full payment. For a resale apartment from a private seller, the choice is between a loan and your own money. A private seller offers instalments only if they want to, and then we write the terms into the contract in particular detail.

We check the developer and the contract and work out the full cost of the purchase for each option. We confirm the loan terms with the bank for your situation and compare them with the payment plan on the same figures.