Here is the next part of our dossier on aid to become a homeowner in Luxembourg!
After detailing aid in the form of direct premiumsLet's see today what are interest support for the repayment of a mortgage.
With atHomeFinanceWe've done the legwork to guide you.

The interest subsidy

In order to reduce the costs of repaying a mortgage loan taken out as part of a property project, the state may grant interest subsidy. You may be entitled to this if the property to which the mortgage relates is intended for your main and permanent residence. This condition must be met for as long as you receive the grant.

For the calculation of the interest subsidy, mortgages are taken into account up to EUR 175,000 (this amount is amortised from 1 January 2010).^er payment of the aid). As for the interest subsidy rate, it can vary between 0.575 % and 2.45 %. It is based on your income and marital status.

The interest subsidy can only be awarded once per applicant.

The interest rate subsidy 

The interest rate subsidy is also a assistance in interest offered by the Luxembourg State and reserved for people who have taken out a property loan for the construction, acquisition or improvement of their home. This interest subsidy allows the lending rate to be reduced by 0.5 % per child (however, in no case may it exceed the effective rate of the loan and the ceiling rate of 3 %).

This aid is collected monthly or half-yearly by the applicant. It is calculated on the basis of interest, in accordance with the repayment plan drawn up by the bank, and in such a way as to reduce your interest rate by 0.5 % per child. For the calculation of the interest subsidy, loans are taken into account up to 175,000.

The interest subsidy can be combined with other state aid.

The tax credit or "Bëllegen Akt

In order to reduce the ancillary costs associated with the purchase of a home, you can benefit from a tax credit on registration and transcription fees (also known as "Bëllegen Akt") when you purchase a property for your own use.

This tax credit is limited to 20,000 per purchaser. For a couple, this amount is doubled.

To qualify for this tax credit, you must therefore acquire your property to establish your main residence, but also commit to living in the property for a minimum of 24 months.

The Registration and Domain Administration will in any case charge a minimum of €100 as registration fee.

All these aids set up for the State are granted under conditions (income, family situation, nature of the property, etc.). For more details and application procedures, you can visit the website www.guichet.lu.