Do you want to become a homeowner or carry out work, but you cannot offer sufficient guarantees to your bank or financial institution of choice? There is a solution to help you: the state guarantee.

What is the state guarantee?

The State provides a guarantee to help people who are unable to obtain a property loan due to a lack of sufficient guarantees such as: personal contribution, mortgage, etc. The State provides a guarantee for the amount of the loan exceeding 60 % of the sum to be borrowed, but up to a limit of 30 % and €131 630.

What are the requirements?

In order for the State to accept to act as guarantor, you must have opened a savings account for at least 3 years and have funded it regularly. The minimum deposit required is € 290 per year. The calculation of the 3-year period starts on the date when the balance in your savings account reaches €240.

You must also have obtained approval for a loan of at least 60 % of the amount of the property to be acquired or the work to be carried out. The rate of your loan cannot exceed 3 %.

Your steps

Download and complete the document " Request for a state guarantee ". The bank that granted you the loan will make the application at the same time as the applications for individual housing benefit.

You will need to provide the following documents:

• Statements from your savings account over a period of 3 years
• A copy of the sales agreement
• Your salary certificate and your spouse's salary certificate if you are buying or renovating a house together
• A copy of your residence certificate if you are not a Luxembourg national

Find all the information on the State guarantee for taking out a housing loan and a lot of information on housing aid on the website Guichet.lu.