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Refinancing rate of the ECB

Since September 20, 2023, the refinancing rate of the ECB is 4.50%

The European Central Bank (ECB) refinancing rate is the rate that banks have to pay when they borrow money from the ECB. The interest rates on real estate loans react to this interest rate. As a rule, a change in this interest rate also entails a change in the interest on real estate loans.

After the interest rate remained unchanged at 0.0% for more than 6 years since March 16, 2016, it was increased twice in 2022 by 0.5% and twice by 0.75%, reaching 2.5% at the end of the year. In 2023 the ECB increased the rate by 1,5%. Since September 20, 2023, the refinancing rate of the ECB is 4.50%. The interest rates on real estate loans react with a time lag to a change in the refinancing interest rate. As a rule, a change in this interest rate also results in a change in interest rates for real estate loans. Most banks in Luxembourg have not yet applied the latest changes in the refinancing interest rate to the interest on their real estate loans. It can therefore be assumed that interest rates on real estate loans will continue to rise in the coming months.

Interest rate trends from the ECB

Date of change Refinancing rate
 15.01.2009  2.00%
 05.03.2009  1.50%
 02.04.2009  1.25%
 07.05.2009  1.00%
 07.04.2011  1.25%
 07.07.2011  1.50%
 03.11.2011  1.25%
 08.12.2011  1.00%
 05.07.2012  0.75%
 02.05.2013  0.50%
 07.11.2013  0.25%
 05.06.2014  0.15%
 04.09.2014  0.05%
 16.03.2016  0.00%
 27.07.2022  0.50%
 14.09.2022  1.25%
 02.11.2022  2.00%
 21.12.2022  2.50%
 08.02.2023  3.00%
 22.03.2023  3.50%
 10.05.2023  3.75%
 21.06.2023  4.00%
 02.08.2023  4.25%
 20.09.2023  4.50%

100% financement

If you want to buy or build an object for your own residential use in Luxembourg, we can offer you, together with our partner banks, a loan for the entire purchase price or construction price. In this case, you only have to bear the additional costs of the project with your own funds.

Does it make sense to renegotiate your loan terms?

The interest rates have fallen continuously in recent years. This development in market interest rates is causing many people who took out their real estate loan a few years ago to think about whether it makes sense to renegotiate its terms.