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The Luxembourg mortgage market is strong

For more than a year now, Covid-19 has been disrupting the economic life of all European countries. Some sectors have been affected, while others seem to be resisting well to the crisis we are going through. Is this the case for the mortgage market in Luxembourg?

This is a question asked by Statec, which recently published a study analysing the impact of Covid-19 on the Luxembourg credit market. According to this survey, the real estate credit sector has been able to resist better than in our European neighbours. Here we summarise the main reasons. 

High creditworthiness of buyers

Although the household debt rate in Luxembourg is 150%, this does not mean that the solvency of buyers is neglected. Indeed, as we explained to you last January, loans must meet certain conditions before being granted. These measures have thus partly ensured that the banks have a high level of solvency among buyers. 

The profiles of buyers also play an important role in the strength of the mortgage market. Indeed, according to the study carried out by Statec, half of the employees resident in the Grand Duchy work in the financial sector, public administrations or international organisations. Sectors that have been spared financially by the crisis.

The opinion of our expert Yann Gadéa, Head of Mortgage Brokers

Indeed, the mortgage market is strong in Luxembourg but this is partly due to the banking players. Between the new regulations and the health situation, banks have tightened their lending conditions.

It is therefore becoming more complex to find the right solution for one's real estate project and it is essential to be accompanied by a broker.

By going through an atHomeFinance broker, the customer is guaranteed a comparison with our 7 partner banks. In concrete terms, this means that he will have a better chance of finding an offer that corresponds to his project. Moreover, brokers, thanks to their expertise, know all the solutions available for the acquisition of a property.

"With property prices relatively high, it is better to have the best conditions and the best rate for your property project. An interest rate negotiated through the broker and related to the amount of the loan can represent a big saving for buyers, even if at first glance the difference of basis points seems small" - Yann Gadéa, Head of Mortgage Brokers.

The current strength of the mortgage market in Luxembourg and the still low interest rates are the perfect time to buy. Take stock with a broker and make an appointment.

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Written by

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Posted on

28 April 2021

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