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Best Mortgage Providers in Luxembourg

Best Mortgage Providers in Luxembourg

If you want to invest as an expat or high-net-worth individual, which is what i specialize in, you can email me (advice@adamfayed.com) or use WhatsApp (+44-7393-450-837).


Did you know that even foreigners are allowed to access real estate properties in Luxembourg?

Yes, the only problem that most non-residents and residents face is the relatively high prices.

Many individuals hold the lifelong aspiration of owning their own home, an achievable goal with dedicated effort.

Securing an appropriate mortgage can be a daunting endeavor, especially due to fluctuating mortgage rates.

This challenge is higher in wealthy countries such as Luxembourg, where high interest rates can accumulate, resulting in elevated costs.

With this in mind, I’ve compiled a list of the top mortgage providers in Luxembourg.

Furthermore, I will delve into vital information regarding mortgages in Luxembourg.

Disclaimer – Please note that the mortgage rates presented in this article are for educational purposes only and should be treated as such.

I have no affiliation with any of these mortgage providers, and this is not an endorsement.

Do not get confused while determining the values as I opted for the general numerical system, i.e., €200,000 would imply two hundred thousand.

The list includes brokers and lenders that offer better rates, but you might find better options via thorough research.

Important Information – Almost all the providers charge something extra known as acquisition costs, which include:
⁃ Mortgage Fees
⁃ Bank Application Fees
⁃ Notary Fees

Almost all the providers require acquisition fees along with 10% – 20% (approx.) of the property value as a downpayment.

Tax savings are generally evaluated as €2,000 for the first five years, €1,500 for the next five years, and €1,000 for the remaining period.

Let’s now explore the best Luxembourgish mortgage providers and their respective interest rates.

Representative Interest Rates in Luxembourg

Interest rates for variable real estate loans and short-term fixed loans (up to 1 year) have increased to an average of 4.6%.

Rates for short-term fixed loans (1 to 5 years) have also risen by 0.21% to 4.19%.

However, rates for loans with initial durations between 5 and 10 years have decreased by 0.09%, now standing at 3.93%.

The average rate for long-term fixed loans of 10 years or more has seen a slight decrease to 3.71%.

This is based on the most recent data from the Central Bank of Luxembourg as of September 4, 2023.

Currently, variable interest rates are in a similar range as fixed interest rates, with only minimal differences between various fixed rates.

The latest data shows that the difference between short-term fixed rates and long-term fixed rates is only 0.48%.

Based on the information provided by Credihome (a mortgage broker in Luxembourg), the current rates are as follows:
⁃ Fixed (3 to 5 years) – 4.48% (4.05% to 4.80%)
⁃ Fixed (10 to 15 years) – 4.48% (4.13% to 4.75%)
⁃ Fixed (25 to 30 years) – 4.46% (3.96% to 4.78%)
⁃ Variable – 4.85% (4.45% to 5.65%)

All of these rates are accurate by the time of writing this article, i.e., 23rd October 2023.

Speculating on fixed interest rates to secure a better rate doesn’t make much sense at this time.

What’s noteworthy is that long-term fixed rates are often lower than variable rates.

So, if you wish to safeguard against potential interest rate increases, you can do so at a reasonable cost.


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AtHomeFinance suggests a debt-to-income ratio of 40% to 45% while seeking a mortgage.

When I tried the company’s mortgage simulator with the loan amount set as €100,000, the details were as follows:
⁃ Interest Rate: 4.15%
⁃ Cost of Loan: €74,997
⁃ Tax Savings: €15,600
⁃ Acquisition Costs: €5,180

One notable aspect of this mortgage provider is that they don’t charge any fee for this.

Remember that the above representative example is just to show the average interest rate and costs.

You might have to pay a higher interest based on factors like property value, credit score, term period, and so on.

You can contact the AtHomeFinance to get an exact quote on your mortgage or apply for one.

Crédit Populaire Européen

Anyone living in Belgium or Luxembourg can apply for a mortgage with Crédit Populaire Européen.

To borrow jointly, one of the borrowers should have been earning a significant income.

The minimum mortgage loan starts from €25,000 and the duration can be set for 10 to 30 years.

When I tried their mortgage simulator for €200,000 the mortgage interest rates were as follows.

Fixed-rate mortgages were 4.18% for 15, 20, and 25 years, whereas the interest rate was 4.63% for 30 years.

Variable rates ranged from 4.27% to 4.74% based on the specific duration chosen for the mortgage.

The Accordion mortgage rates ranged from 4.58% to 4.81% based on the specific term.

Based on the specific conditions, the loan amount can range from 80% to 100% of the purchase value of the property.

Courtier De Crédits Immobiliers – Prêt Immo

Courtier De Crédits Immobiliers offers fixed-rate and variable mortgages with the following rates.

According to their website, the following rates apply.

The interest for a fixed-rate mortgage for a period of up to one year is 4.60% with a variation of +0.18% over one month.

The interest for a fixed-rate mortgage for a period of one to five years is 4.19% with a variation of +0.21% over one month.

The interest for a fixed-rate mortgage for a period of 5 to 10 years is 3.93% with a variation of -0.09% over one month.

The interest for a fixed-rate mortgage for more than 10 years is 3.71% with a variation of -0.02% over one month.

The actual value of the amount that can be obtained as a mortgage can be influenced by various factors.

It is suggested to contact Courtier De Crédits Immobiliers to get an accurate quote or apply for a mortgage.


Credihome is not a mortgage provider, instead, it is a broker known to be the best in Luxembourg.

The fixed-rate mortgage interest rates with this broker are as follows:
⁃ For 3 to 5 years: 4.49% (range: 4.05% to 4.80%)
⁃ For 10 to 15 years: 4.48% (range: 4.13% to 4.75%)
⁃ For 25 to 30 years: 4.46% (range: 3.96% to 4.78%)

The variable mortgage rates are around 4.85% with a range of 4.45% to 5.65%.

Here the range implies the lowest rates as well as the highest rates that a person can get based on their circumstances.

The range presented here represents the current mortgage rates in Luxembourg at the time of writing (23rd October 2023).

You should contact Credihome to get a quote for your mortgage or apply for one.


The credit amount is determined by both the borrowers’ income and their contribution.

Even 100% financing is feasible for first-time buyers under specific conditions.

The credit amount is also influenced by the interest rate and potential loan duration.

It relies on:
⁃ The debt ratio typically capped at 45%
⁃ The Loan-to-Value (LTV) ratio, which is the relationship between the credit amount and the home’s purchase value, is assessed by the banks to approve your application

According to their website, the following rates apply.

The interest for a fixed-rate mortgage for up to one year is 4.60% with a variation of +0.18% over one month.

The interest for a fixed-rate mortgage for one to five years is 4.19% with a variation of +0.21% over one month.

The interest for a fixed-rate mortgage for 5 to 10 years is 3.93% with a variation of -0.09% over one month.

The interest for a fixed-rate mortgage for more than 10 years is 3.71% with a variation of -0.02% over one month.

The actual value of the amount that can be obtained as a mortgage can be influenced by various factors.

It is suggested to contact LuxKredit to get an accurate quote or apply for a mortgage.

Mortgage Options in Luxembourg

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Luxembourg provides a range of mortgage options to suit your specific circumstances.

The type of mortgage you qualify for depends on factors like your deposit size, monthly income, expenses, and credit history.

In Luxembourg, the maximum mortgage term is typically 30 years but can extend to 40 years for younger borrowers.

— Fixed-Rate Mortgage

With a fixed-rate mortgage, your interest rate remains constant throughout the mortgage term.

This offers stability in monthly payments, but fixed rates are generally higher than variable rates.

— Variable Rate Mortgages

These mortgages are linked to rates set by the Central Bank of Luxembourg.

Interest rates can fluctuate, making variable mortgages cheaper during low-rate periods but potentially costlier when rates rise.

Consider your financial situation before opting for a variable-rate mortgage.

— Adjustable Rate Mortgage

Adjustable rate mortgages fix your rate for a set period, typically 3, 5, or 10 years.

After this, you can renegotiate for a new fixed term or transition to a variable rate.

— Mixed Fixed and Variable Rate Mortgage

Although they are less common, these mortgages allow you to divide your borrowing between fixed and variable rates.

Buy-to-Let Mortgages in Luxembourg

Investing in a Luxembourg property requires a specialized buy-to-let mortgage.

These mortgages typically demand a minimum 20% property value deposit.

If you have a substantial investment portfolio, it may serve as collateral to reduce your deposit.

Relying solely on projected rental income isn’t enough for mortgage approval.

You must demonstrate sufficient collateral, savings, or employment income to cover the loan.

Many banks offer non-amortized mortgages for buy-to-let investors who opt for this option.

With these, borrowers pay only interest each month, repaying the capital at the mortgage’s end, commonly known as interest-only mortgages elsewhere.

New-Build/Off-Plan Mortgages in Luxembourg

Certain banks in Luxembourg provide specialized mortgages for new home purchases or self-built properties.

For new homes or construction projects, you’ll need to present the lender with:
⁃ Planning permission
⁃ Construction plans
⁃ Specifications
⁃ Cost estimates

All of these documents should be provided to the mortgage provider before they assess your application.

When buying off-plan (referred to as ‘sale in the future state of completion’ or “vente en futur état d’achèvement” – VEFA) from a developer, funds are released in stages as construction progresses.

Borrowing for a Mortgage in Luxembourg

Mortgage borrowing limits in Luxembourg are set by the CSSF (Commission de Surveillance du Secteur Financier):

— First-time buyers can borrow up to 100% of a property’s value, potentially requiring a down payment.

— Non-first-time buyers can borrow up to 90%, necessitating at least a 10% deposit. Some lenders may offer higher borrowing levels for 15% of mortgages.

— Buy-to-let investors can borrow up to 80%, mandating a 20% deposit.

Lenders consider your income, with typical mortgage repayments not exceeding 35% of your income (some banks allow up to 45%).

On average, homeowners spent 39% of their income on mortgage repayments in 2020, as reported by the CSSF.

Mortgage Calculators/Simulators

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To estimate your borrowing capacity, many banks offer online mortgage calculators.

Enter your house price, income, and intended mortgage term to get an estimate from calculators provided by:
⁃ Spuerkeess
⁃ AtHomeFinance
⁃ Raiffeisen

You can easily find these calculators by typing the name and adding Luxembourg as a keyword in your search engine.

The process of extremely straightforward as you don’t even need to log into any of these to check the approximate values.

Applying for a Mortgage in Luxembourg

Once you’ve determined your potential borrowing amount and found a suitable property, you can formally apply for a mortgage:

Schedule an appointment with a loan officer, typically arranged via phone or the bank’s website.

It is always advisable to compare rates from multiple banks before selecting one.

While mortgage brokers are less common in Luxembourg, they can help you find competitive rates from both major banks and smaller lenders.

The brokers offer valuable insights for newcomers to the Luxembourg mortgage system.

If applying directly to a bank, provide property Land Registry details, total price, and price per square meter.

You should always include an estimate of additional fees.

The bank will request proof of your income, often through payslips, and may allow investment assets as collateral instead of a cash deposit.

A wage assignment may be required, granting the bank the right to claim against your employment income for missed mortgage payments.

Completion day involves signing mortgage paperwork with a financing officer.

The general documents needed for applying for a mortgage loan in Luxembourg include:
• ID or passport.
• Proof of income (salary slips for the previous 3 months should suffice).
• Proof of your credit history and outgoings.
• Bank statements (at least 3 statements).
• Sale agreement.
• Land registry extract.
• Proof of funds, which should include the evidence for the deposit.

If you don’t intend to move in immediately (e.g., for renovations), some banks allow you to delay full repayments and pay only interest.

Assistance with Mortgage Approval

If you encounter difficulties securing a mortgage, you might qualify for a state home loan guarantee.

The government guarantees the loan portion exceeding 60% loan-to-value, covering up to 30% of the property’s value, capped at €153,135.

Eligibility requirements include:
⁃ Holding a home loan savings account with a bank for at least three years, depositing a minimum of €290 annually.
⁃ Ensuring mortgage repayments don’t exceed 40% of your income.
⁃ Having the mortgage lender offer at least 60% of the property value.

For more details on regulations and application procedures, refer to the government’s guide.

Mortgage Costs in Luxembourg

Lenders in Luxembourg typically incorporate fees (application, advance, and account handling) into the mortgage interest rate rather than charging them upfront.

Tax Benefits and Relief

Interest payments on Luxembourg mortgages are tax-deductible for your primary residence.

Deductions vary from €1,000 to €2,000 per household member per year, depending on the years:
⁃ Years 1–5: €2,000
⁃ Years 6–10: €1,500
⁃ More than 10 years: €1,000

Property Insurance

Mortgage lenders often require two types of insurance: mortgage protection and building insurance.

These cover property structure damage due to events like fire or flooding.

Contents insurance, though optional, can protect your belongings from theft or damage.

Mortgage Repayments

Mortgages in Luxembourg are typically repaid monthly, although some banks offer quarterly, bi-annual, or annual payment arrangements.

If you wish to overpay or repay early, you may need to pay fees.

These include an arrangement fee and compensation for the bank’s interest loss due to early repayment.

Independent mortgage advice is advisable before making early repayments or overpayments.

Mortgage Refinancing in Luxembourg

If you consider refinancing, in response to reduced interest rates or payment restructuring, you must initiate the process with your bank.

If you opt to refinance with the same bank, there may be fees for arranging the new mortgage.

Simultaneously, you may also have to pay fees for potential early repayment charges, if applicable.

Keep in mind that your lender is not obligated to approve your request for refinancing.

The acceptance of your application for refinancing will depend on your situation.

If you decide to switch your mortgage to a different lender for a more favorable deal, it comes with added expenses.

You’ll encounter application fees, early repayment charges, or compensation to your previous bank.

Moreover, new mortgage insurance might be a requirement in most cases.

If you’re contemplating a lender change, you’ll need to weigh the superior interest rate against the various costs involved.

Is Purchasing Property in Luxembourg a Good Choice?

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Most expats initially opt to rent when they arrive in Luxembourg.

However, for those planning long-term stays, buying a property might be more appealing.

Renting allows you to explore the best places to live, but apartment prices can be relatively high, especially in the capital.

The Luxembourg property market is exceptionally stable, and properties sell rapidly.

It’s worth noting that certain buyers have been priced out of the market due to rising property costs.

It has been estimated that house prices surged by 131% between 2010 and 2022.

In early 2022, average apartment prices reached €800,000, or €940,000 in Luxembourg City.

The latest house price information is available from Luxembourg’s Housing Observatory.

For property buyers, it’s important to consider additional costs such as registration fees, notary fees, mortgage fees, and home insurance.

Who Is Eligible for a Mortgage in Luxembourg?

Foreigners residing and working in Luxembourg have the freedom to apply for a mortgage.

There are no constraints on expats seeking a home loan, although US citizens might encounter fewer options than others.

The Foreign Account Tax Compliance Act (FATCA) requires countries to report foreign assets owned by US nationals.

This additional bureaucratic layer means that some of Luxembourg’s smaller banks may be less inclined to lend to US citizens.

In contrast to some European nations, Luxembourg doesn’t offer incentives to attract foreign buyers, mainly because it doesn’t need to.

A 2021 Employment Ministry report revealed that 70% of Luxembourg’s workforce consists of immigrants and cross-border workers, with the majority (50%) residing in France.

Bottom Line

Buying a property with the help of a mortgage is often considered to be a time-consuming process.

This is particularly the case with a significantly enhanced housing market in Luxembourg.

However, the information provided within this article is usually helpful for most people who wish to secure a mortgage.

The details provided here are not only helpful for residents, but they also come in handy for foreigners who wish to obtain a mortgage in Luxembourg.

According to the Housing Observatory (Observatoire de l’Habitat), only 33% of homeowners in Luxembourg were free from mortgages.

Another report, provided by CSSF, suggested that the average mortgage amount taken by individuals averaged around 78%.

This exemplifies the number of individuals who seek mortgages in Luxembourg, either expats or residents.

Therefore, securing the mortgage from the right provider is always crucial to be free from issues in the future.

If you find it hard to get access to the best possible rates for your mortgage, you always consult a mortgage advisor or broker.

They take care of the process on your behalf and make sure that the process is hassle-free.

That being said, I strongly hope that the information provided in this article helped you determine the mortgage situation in Luxembourg.

If you are an expat or a high-net-worth individual seeing the best-in-class wealth management services, then you have come to the right place.

I have personally helped several clients achieve financial freedom through my top-notch tailored investment solutions.

To find out whether you can potentially be the next person who benefits from my services, feel free to get back to me.

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Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.

This website is not designed for American resident readers, or for people from any country where buying investments or distributing such information is illegal. This website is not a solicitation to invest, nor tax, legal, financial or investment advice. We only deal with investors who are expats or high-net-worth/self-certified  individuals, on a non-solicitation basis. Not for the retail market.



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