03.Sep .2021 12:00

Mortgage Loans In GEL Got Expensive

Mortgage Loans In GEL Got Expensive
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The National Bank of Georgia (NBG) reports that the interest rate on the mortgage loans issued for private individuals are increased in price in 2021.

As of July, the average interest rate on mortgage loans in GEL amounts to 11.86%, which is 3.76 percentage pints high compared to January.

Interest rates are down on mortgage loans in USD and EUR. The interest rate on mortgage loans in EUR totals to 4.7% on average, which is 0.6 percentage points down compared to January. As for the mortgage loans in USD, its average interest rate is 6.5%, which is 0.5 percentage points less compared to January. However, according to the acting regulations in the country, loans up to 200,000 GEL can be taken only in GEL, correspondingly most of the citizens receive mortgage loans in GEL.

In turn, loans in GEL are increased in price due to the growth of refinancing rate by the NBG. Currently, the refinancing rate is 10%.