Mortgage rates in Luxembourg in 2026: what are the current rates?
In July 2026, property rates stood at 3.5 % for a fixed rate of 1 to 3 years, 3.55 % over 5 years, 3.85 % over 10 years and 3.90 % over 30 years. The variable rate is 2,90 %. However, the rate offered by a bank depends on your circumstances and your plans.
Last updated: 5 August 2026
Interest rate data: August 2026
What are the current property rates in Luxembourg?
The latest rates available are those for August 2026.
- Fixed rate 1–3 years: 3.5 %
- 5-year fixed rate: 3.55 %
- 10-year fixed rate: 3.85 %
- 30-year fixed rate: 3.9 %
- Variable rate: 2.9 %
These rates are provided for information purposes only. They do not constitute a credit offer and may vary depending on the borrower’s circumstances.
Source: atHomeFinance – Check the latest mortgage rates
How will property prices change in 2026?
Mortgage rates depend, in particular, on the decisions of the European Central Bank, inflation and banks’ funding conditions.
On 23 July 2026, the European Central Bank left its three key interest rates unchanged. The deposit facility rate remains at 2,25 %, that of the main refinancing operations at 2,40 % and that of the marginal lending facility at 2,65 %.
The latest statistics published by the Central Bank of Luxembourg relate to May 2026. The average rate on new variable-rate mortgages stood at 3,10 %. The average interest rate on loans with terms of between one and five years stood at 3,74 %.
These figures from the BCL are weighted averages calculated on the basis of a sample of banks. They provide an indication of the general market trend, but do not necessarily correspond to the rate offered to each borrower.
Should you choose a fixed-rate or a variable-rate mortgage?
The fixed rate remains unchanged for the period specified in the contract. It allows you to know your monthly repayments in advance and protects you against any potential rise in interest rates.
The variable rate may rise or fall. It allows borrowers to benefit from a fall in interest rates, but may also increase the cost of borrowing. The CSSF points out that a mortgage may also combine a fixed-rate component with a variable-rate component.
The choice depends on your budget, the term of the loan and your ability to cope with any increase in your monthly repayments.
What factors affect your mortgage rate?
The bank sets the terms of your loan after assessing your creditworthiness. In particular, it considers:
- your income and its stability; ;
- your expenditure and existing loans; ;
- your personal contribution; ;
- the amount of funding; ;
- the term of the loan; ;
- the available guarantees.
The bank must check that you have sufficient funds to repay the mortgage. It may ask for the necessary information regarding your income, your expenditure and your other financial commitments.
How can you compare several mortgage offers?
The interest rate alone is not enough to compare two loans. You should also check the monthly repayments, the total cost of the loan, application fees, insurance and the terms for early repayment.
Before the contract is signed, the lender must provide a European standardised information sheet, known as the FISE. This document sets out, in particular, the amount of the loan, its term, the interest rate and the number and frequency of repayments.
How can atHomeFinance help you?
atHomeFinance helps you assess your borrowing capacity, prepare your application and compare different financing options.
You could start by try it for free your mortgage, then discuss your plans with a mortgage broker.
Frequently Asked Questions about property rates
Are the published property rates guaranteed?
No. The published rates provide an indication of current conditions. The final offer depends, amongst other things, on the borrower’s income, outgoings, personal contribution, the term of the loan and the security provided.
Why might the rate offered by my bank be different?
Each bank assesses the borrower’s risk profile and creditworthiness. Two people financing a property of the same value may therefore receive different offers depending on their financial circumstances and the details of their project.
Sources
Written by
atHome.lu
Posted on
10 February 2025