Mortgage interest rates in Luxembourg
Every month we compile the rates obtained for our customers from our partners.
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Current mortgage rates
Latest rate data (April 2026)
| Type of loan | Interest rate |
|---|---|
| 1-3 Year Fixed Rate | 3.05% |
| 5 Year Fixed Rate | 3.40% |
| 10 Year Fixed Rate | 3.70% |
| 30 Year Fixed Rate | 3.90% |
| Variable rate | 2.85% |
What do you need to know regarding interest rate?
Mortgage interest rates are the percentage charged by lenders on the loan amount borrowed. They significantly impact your monthly payments and the total cost of your loan.
In Luxembourg, you can choose between fixed rate, which remain constant over the loan term or a predefined period, and variable rates, which fluctuate based on market conditions.
Fixed rates offer stability and predictability, while variable rates can provide greater repayment flexibility but carry the risk of higher payments if rates rise. Our experts can help you select the best option for your needs.
The latest news of the real estate market
The trend observed in recent months has continued into early 2026 and has been exacerbated by the conflict in Iran, with the situation varying depending on the type of interest rate.
On the one hand, long-term fixed rates remain volatile. This instability is linked in particular to persistent geopolitical factors, such as the conflicts in Ukraine and, above all, the conflict in the Middle East (Iran-Israel), which are having an impact on oil and gas prices and, consequently, on inflation prospects. These factors are increasing global economic uncertainty, driving up funding costs for banks, and affecting the fixed or adjustable rates offered to borrowers.
On the other hand, variable-rate loans are currently benefiting from a more favourable environment. The European Central Bank (ECB) has adopted a more accommodative monetary policy, with several cuts to its key interest rates in 2025. This approach aims to support the eurozone economy and is reflected in lower short-term rates, making variable-rate loans temporarily more attractive. Inflation in the eurozone appears to be under control at 2%, but if the conflict in Iran persists, there could be a resurgence in inflation, leading to rises in key interest rates and, consequently, variable rates.
In this uncertain environment, the choice between a fixed-rate or variable-rate loan depends very much on your profile, your plans and your risk tolerance. By combining different solutions, we can meet all your expectations.
Yann GADEA
Head of Mortgage Brokers
The best way to find out about the current financing conditions for your project is to make an appointment with us.
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Which factors can influence your mortgage rate?
Factors that determine your mortgage rate
Your mortgage rate depends on several key factors. First, your financial profile is critical—lenders assess your credit score, income stability, employment history, and debt-to-income ratio to define the risk of lending to you. A strong profile often secures lower rates, while higher perceived risk can result in higher ones.
Second, market conditions play a significant role. Economic factors like inflation, central bank policies, and overall economic growth impact rates. For instance, strong economies often lead to higher rates, while slower growth or recessions tend to lower them to encourage borrowing.
Lastly, loan-specific details also influence your rate. The loan amount, repayment term, and whether you choose a fixed or variable rate all matter. Larger loans or longer terms may carry higher rates due to greater risk, while shorter terms or larger down payments could help you access more competitive offers.
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