What interest rate can I expect for my financing?

Some banks adjust their interest rates weekly. Most banks also agree to negotiate interest rates. The interest rate that you can expect for your mortgage loan depends on whether you choose a fixed or variable interest rate and, if you choose a fixed interest rate, also on the duration of the fixed rate. So, we can only tell you what interest rate you will receive if we know all the details of your project. The best way to get an interest rate is to request a free quote. If you want that we can negotiate for you, the best interest with our partner banks, it is best to provide us with complete documents. In this way, we can best convey the quality of your project to our partner banks. A request for an offer for a mortgage loan is of course free of charge and non-binding.

Interest rates on mortgage loans in Luxembourg

After the refinancing interest rate of the European Central Bank fell to 0.0% for the first time in 2016, the interest rates on real estate loans also reached an all-time low. At the end of summer 2019, interest rates plummeted again and are now even below the lowest point in 2016.

Development of interest rates on real estate loans within the past 12 months

According to the latest figures published by the Luxembourg central bank on May 12, 2020, interest rates on mortgage loans with an initial fixed interest rate of 10 years and more fell by 0.44% within a year. In March 2020, the average rate for this fixed interest rate period was 1.41%, compared to 1.85% in March 2019. Interest rates, which were fixed for an initial period of between 5 and 10 years, also fell significantly. This was 1.23% this year compared to 1.59% in March 2019. For the interest rates fixed for very short terms of up to 5 years, the decrease was still 0.23%. These reached an average of 1.12% compared to 1.35% in March 2019. The smallest change of 0.06% was in the variable interest rates and commitments up to one year. These fell from 1.48% in March 2019 to 1.42% in March this year.

Duration of the fixed interest period March 2019 March 2020 Change in one year
Variable interest rate and initial fixed interest rate for 1 year or less 1,48 % 1,42 % -0,06 %
Initial fixed interest rate for more than 1 year up to and including 5 years 1,35 % 1,12 % -0,23 %
Initial fixed interest rate for more than 5 years up to and including 10 years 1,59 % 1,23 % -0,36 %
Initial fixed interest rate for more than 10 years 1,85 % 1,41 % -0,44 %

 

Interest rates applied by Luxembourgish credit institutions to new real estate loans in euros

Graph based on data published by Banque Centrale du Luxembourg on May 12, 2020