Interest rates in Luxembourg (2026)

Are you thinking of buying a property in Luxembourg? It's essential to know your borrowing capacity and current interest rates to optimise your financing. Here's a full update on the situation in March 2026.

Fixed rates in Luxembourg in March 2026

According to data collected from the main Luxembourg banks, the average fixed rates negotiated are as follows:

• Fixed rate 1-3 years: 3.05 %
• 5-year fixed rate: 3.4 %
• 10-year fixed rate: 3.7 %
• 30-year fixed rate: 3.9 %
• Variable rate: 2.85 %

👉 Some banks still offer promotional deals for a limited time only. It is therefore advisable to regularly consult specialised brokers such as those at atHomeFinance to take advantage of the best conditions.

Criteria influencing rates

Several factors can affect the rates offered by banks:

• Borrower profile A substantial downpayment and a high level of income often mean that you can get a better rate.
• Type of property : Buying a new or renovated property with a good energy rating (class A or B) can result in a discount on the interest rate.
• Loan term Long-term loans (30 years or more) generally have higher rates because of the increased risk for the bank.

Fixed, variable and variable rates: what choice should you make?

• Fixed rate The rate is constant throughout the term of the loan. It offers security if interest rates rise, but may be less flexible if they fall.
• Variable rate The rate changes in line with market indices. Although it may be lower initially, there is a risk if rates rise.
• Adjustable rate Fixed rate: The rate is fixed for a set period (e.g. 3 years), then becomes variable. This option allows you to benefit from an advantageous initial rate while offering the possibility of renegotiating the rate at the end of the fixed period.

What strategy should you consider for your mortgage?

In an uncertain interest rate environment, there are several options to consider:

👉 Revisable fixed rate for a short term (3 years) : This option would make it possible to secure part of the loan while retaining the possibility of renegotiating it at a later date, if rates change favourably.

👉 Keeping track of interest rates Watching the ECB's decisions and market trends can help you anticipate possible movements and adjust your financing accordingly.

👉 Future loan renegotiation : At the end of the fixed period, some banks may offer to renegotiate the rate. This could represent an opportunity if market conditions become more favourable.

These different avenues can be explored depending on your personal situation. With atHomeFinanceYou'll also benefit from tailor-made support from professional brokers who can help you identify the options best suited to your project. Start by estimating your borrowing capacity using our simulator, then make an appointment with a broker. atHomeFinance. The service is 100 % free.

(Find the interest rates updated every month just here)