The Central Bank of Luxembourg (BCL) has revealed the most recent interest rates granted to residents who applied for property loans in April.

There have not been major changes to fixed rates, but the variable rate has improved.

Securing a loan in Luxembourg remains less than ideal. According to data published last week by the BCL, interest rates on loans are showing a tendency to fall – though slowly.

In April, new property loans carried an average fixed rate of 3.45% for terms over ten years. This marked a slight decline compared to the previous month.

Influenced by recent market developments, fixed rates have remained broadly stable since September 2024. In practical terms, a €700,000 loan at this rate results in a monthly payment of approximately €3,486.

Fluctuations in variable rates are more pronounced. Luxembourgish banks granted loans at a 3.5% variable rate – loan conditions not seen since January 2023. At this rate, a €700,000 loan would require a monthly payment of €3,504.

However, rates for living cost loans increased in April, in line with the usual springtime rebound. The average rate currently stands at 4.63%.