Interest rates on new mortgage loans
Fixed and variable rates in Luxembourg based on figures published by the BCL on Jan 6, 2025
The following analyzes show the development of the interest rates on new mortgage loans in Luxembourg on Jan 6, 2025. The data on which these analyzes are based are updated on a monthly basis. They are based on figures from the Banque Centrale du Luxembourg (BCL).
The interest rates are divided into the following categories:
- Variable and fixed interest rate up to 1 year
- Fixed interest for more than 1 year up to 5 years
- Fixed interest rates for more than 5 years up to 10 years
- Fixed interest rates for more than 10 years up to 15 years
- Fixed interest rates for more than 15 years up to 20 years
- Fixed interest rates for more than 20 years up to 25 years
- Fixed interest rates for more than 25 years up to 30 years
- Fixed interest rate for more than 30 years
In general, the change in interest rates from one month to the next is very small. Although the figures from the Luxembourg Central Bank are always published with a delay of one to two months, they reflect the current market situation quite well and therefore enable you to estimate whether your interest rate corresponds to the current market situation.
Mortgage interest rates published by the BCL on Jan 6, 2025
| Duration of the fixed interest period | Current rate |
Change in one month |
|---|---|---|
| Variable interest rate and initial fixed interest rate for 1 year or less | 4.22% | -0.06% |
| Initial fixed interest rate for more than 1 year up to and including 5 years |
3.29% | -0.13% |
| Initial fixed interest rate for more than 5 years up to and including 10 years |
3.37% | -0.05% |
| Initial fixed interest rate for more than 10 years up to and including 15 years |
3.74% | -0.16% |
| Initial fixed interest rate for more than 15 years up to and including 20 years |
3.15% | -0.10% |
| Initial fixed interest rate for more than 20 years up to and including 25 years |
3.27% | +0.01% |
| Initial fixed interest rate for more than 25 years up to and including 30 years |
3.39% | -0.11% |
| Initial fixed interest rate for more than 30 years |
3.54% | -0.06% |
Current Trends in Mortgage Interest Rates
According to the latest data published by the Banque Centrale du Luxembourg (BCL) on January 6, 2025, mortgage interest rates have further decreased in most categories compared to the previous month. Variable rates and initial fixed rates for up to one year recorded a drop of 0,06 percentage points, currently averaging 4.22%.
Rates with a fixed period of more than one year up to and including five years decreased by 0.13 percentage points to reach 3.29%, while rates fixed for more than five years up to and including ten years showed a smaller drop of 0.05 percentage points, reaching 3.37%.
In contrast, rates fixed for more than ten years up to and including fifteen years saw a significant decline of 0.16 percentage points, resulting in a current average of 3.74%. Similarly, rates fixed for more than fifteen years up to and including twenty years decreased by 0.10 percentage points to reach 3.15%.
Rates fixed for more than twenty years up to and including twenty-five years slightly increased by 0.01 percentage points and currently stand at 3.27%. For fixations of more than twenty-five years up to and including thirty years, the interest rate decreased by 0.11 percentage points to reach 3.39%. Rates fixed for more than thirty years saw a slight decline of 0.06 percentage points, bringing the rate to 3.54%.
Despite these fluctuations, the trend is clear: variable-rate mortgages remain the most expensive option, while longer fixations often provide more favorable rates. Those opting for flexibility still pay a significant premium compared to long-term fixed-rate options.
Important NOTE:
Please note that these interest rates correspond to the interest rates recorded by the BCL. These reflect the actual market situation. However, the numbers are delayed by at least a month. Due to the current strong upward trend, you should therefore assume that your bank's interest rates can be significantly higher than the interest rates shown here.
Interest rates on real estate loans published by the BCL on Jan 6, 2025
We negociate your interest rate for you
Request an interest rate for your project
What interest rate can I expect for my financing?
Some banks adjust their interest rates weekly. Most banks also agree to negotiate interest rates. The interest rate that you can expect for your mortgage loan depends on whether you choose a fixed or variable interest rate and, if you choose a fixed interest rate, also on the duration of the fixed rate. So, we can only tell you what interest rate you will receive if we know all the details of your project. The best way to get an interest rate is to request a free quote. If you want that we can negotiate for you, the best interest with our partner banks, it is best to provide us with complete documents. In this way, we can best convey the quality of your project to our partner banks. A request for an offer for a mortgage loan is of course free of charge and non-binding.
