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Average current applied rates

In general, the change in interest rates from one month to the next is very small. Although the figures from the Banque Centrale du Luxembourg are always published with a delay of one to two months, they reflect the current market situation quite well and therefore allow you to estimate whether your interest rate corresponds to the current market situation or not.

Duration of the fixed interest period November
2020
Change in
one year
Variable interest rate and initial fixed interest rate for 1 year or less 1,36 % -0,07 %
Initial fixed interest rate for more than 1 year up to and including 5 years 1,12 % +0,16%
Initial fixed interest rate for more than 5 years up to and including 10 years 1,20 % +0,11 %
Initial fixed interest rate for more than 10 years 1,28 % -0,03 %

Does the corona crisis affect the interest rates on real estate loans?

According to the latest figures from the Banque Centrale du Luxembourg published in January 2021, the interest rates on real estate loans, which were fixed for a very long term of 10 years and more, fell by 0.03% in one year. In November 2020, the average rate for this fixed period was 1.28% compared to 1.31% in November 2019. We also recorded a decrease of 0.07% for variable interest rates and those that were fixed for very short terms of up to one year. These reached an average of 1.36% compared to 1.43% in November 2019. On the other hand, the rates set for short periods between 1 and 5 years rose by 0.16%. These increased from 0.96% in November 2019 to 1.12% in November 2020. The rates fixed for an initial period between 5 and 10 years have also increased to 1.20% compared to 1.09% in November 2019. Despite the current COVID 19 crisis, interest rates in Luxembourg generally remain at historically low levels. As the figures from the Luxembourg central bank show, the COVID 19 crisis did not lead to a general rise in interest rates.

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

Chart based on data published by Banque Centrale du Luxembourg in January 2021

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