You are actively researching in Luxembourg, you know how much you can borrow for your property purchase, you may even have already consulted your bank about it... Did you know that you can save tens of thousands of euros on your home loan? Here's how to do it:

1. Home loan: all those costs you can optimise

While the concept of a home loan may seem simple, its anatomy is actually more complex: there are a myriad of fees that can be optimised. Here they are:

• Input : you can maximize your contribution by taking advantage of tax optimisation on your tax return each year. The more you increase your contribution, the less you will have to borrow, and therefore the less you will pay in fees to the bank. We invite you to discover our tax file for read more ;
• Insurance : loan insurance is also an important lever for optimisation. The amount you pay is a percentage of what remains to be repaid
• The interest rate : is the sinews of war. We'll explain right away!

2. Getting the best interest rate for your home loan in Luxembourg

As you can see, the interest rate is the main lever you can use to influence your to save money on your home loan. It is abouta percentage of the amount still to be repaid to your bank. This percentage determines the amount of fees you have to pay to the bank, each month, in addition to the loan repaymentfor his service.

For example: Let's say you chose to borrow €800,000 over 30 years, with a fixed rate of 1.35%. A simple reduction in this rate of 0.1% could save you €13,584 over the entire term of the loan.

The best way to find out what the best rate is on the market is to compare the different offers that banks make you.

3. Why do you have to compete with banks to get the best rate?

Each bank has its own specificities that will vary the interest rate of the loan. Indeed, some banks will pay attention to different parts of your profile:

• What type of contract do you have? What type of job do you have (self-employed, civil service, executive...)
• What is your lifestyle? Your daily expenses? Your outstanding loans?
• Are you a thrifty or a spendthrift?
• What is your current contribution?

It is then recommended to compare banks to get several offers, and then negotiate the best rate.

You have two options:

• Go to each bank to compare offerss: if you are comfortable with banking terms, interest rates and other insurance, we suggest that you go directly to each of the banks present in Luxembourg. This will allow you to make your choice directly. Be aware, however, that these comparisons will take you time in addition to the visits.
• Use a broker to compare fees. The broker's job is to investigate, to consult each bank to know their rates, and their current conditions. Shopping around for a loan is not necessarily easy for someone who does not have the necessary financial knowledge, which can be complex. It is better to leave this job to a professional! By going through a broker, you will be able to take advantage of great flexibility and optimal advice tailored to your project. To find out more, go to here

In the meantime, there is nothing to stop you from making your first property visits in order to refine your criteria. In addition, thanks to an initial estimate of your budget online, you know roughly what to expect.

Now that you have all the keys to successful financing, all you have to do is optimise your search and speed up your purchase. Thanks to this valuable advice you will have every chance of successfully purchasing the property of your dreams.