Mortgages in Luxembourg: What You Need to Know
Luxembourg has one of the highest property prices in Europe, making mortgage planning essential. The average price per m² in Luxembourg City exceeded €10,000 in 2025, meaning most purchases require a substantial loan.
Key Mortgage Features
- Down payment: Minimum 20% (80% LTV) for most standard properties. Banks may require more for investment properties.
- Rate types: Fixed, variable, and mixed-rate mortgages are available. Fixed-rate offers certainty; variable rates may be lower initially.
- Term: Typically 20–25 years, with some flexibility up to 30–35 years.
Additional Purchase Costs
- Registration tax (droit d'enregistrement): 6% of purchase price
- Transcription fee: 1% of purchase price
- Notary fees: approx. 1–2%
- First-buyer benefit: Bëllegen Akt reduces registration tax by up to €30,000
FAQ
What is the average mortgage rate in Luxembourg in 2026?
Variable rates are typically 3–4.5%, while fixed-rate mortgages range from 3.5–5% depending on term length and lender. Compare offers from BGL BNP Paribas, ING Luxembourg, Spuerkeess, and Banque Raiffeisen.
How much down payment is required for a Luxembourg mortgage?
Most Luxembourg banks require a minimum 20% down payment (80% LTV). First-time buyers may access specific schemes. Properties above €700,000 often require 25–30% down.
What is the maximum mortgage term in Luxembourg?
Standard terms are 20–25 years. Maximum is typically 30 years, with some lenders offering up to 35 years for younger borrowers.
Is there a first-buyer advantage in Luxembourg?
Yes — the Bëllegen Akt reduces registration tax for first-time buyers on their primary residence. The benefit is up to €30,000 in tax savings. This should be calculated separately from your mortgage.