Prêt hypothécaire Calculator Luxembourg

Market overview

Luxembourg's domestic mortgage market is led by Spuerkeess (Banque et Caisse d'Épargne de l'État, the state savings bank), BGL BNP Paribas, Banque Internationale à Luxembourg (BIL), ING Luxembourg, and Banque de Luxembourg, with Raiffeisen also serving the cooperative segment. Following ECB rate cuts that brought the deposit facility rate from 4.0% in mid-2024 to roughly 2.0-2.25% by early 2026, Luxembourg mortgage pricing has eased from 2023 peaks above 4.5%. The CSSF (Commission de Surveillance du Secteur Financier) supervises lenders alongside the BCL, and the Comité du Risque Systémique enforces macroprudential LTV/DTI caps introduced in 2021 to cool a property market with among the highest price-to-income ratios in the EU.

Why 3.5% is the typical rate

3.5% reflects a 20-year fixed or 25-year mixed-term mortgage from Spuerkeess or BGL to a salaried EU borrower at 80% LTV in early 2026, after the ECB easing cycle restored competitive housing-loan pricing.

Tax & regulatory notes

Luxembourg charges registration duty (droits d'enregistrement) of 6% plus 1% transcription duty on property purchases — totalling 7%, though first-time owner-occupiers benefit from the Bëllegen Akt tax credit of up to €40,000 per buyer (raised in 2024 from €30,000). Mortgage interest on a primary residence is deductible up to €4,000/year for the first six years (lower thresholds thereafter). The Klimabank/SNHBM offers state-subsidised "prêts climatiques" for energy-efficient renovations at 0-1.5%, and the Société Nationale des Habitations à Bon Marché provides subsidised housing for income-qualified buyers.