Borrowing conditions for homebuyers in Luxembourg improved modestly this summer, as the BCL reported declines in both variable and fixed mortgage rates for June.

Luxembourg residents saw modest improvements in mortgage conditions in June, with both variable and fixed-rate loans becoming slightly more affordable, according to data from the Luxembourg Central Bank (BCL).

The BCL reported that new borrowers secured better terms at the start of summer, marking a gradual recovery from recent highs.

Variable-rate mortgages saw the most notable decline, dropping to 3.28% – down from 3.88% at the beginning of the year. Rates now hover near levels last seen in late 2022. For a €700,000 loan over 25 years, this translates to a monthly payment of roughly €3,422.

Fixed-rate mortgages also improved, though less sharply. The average rate for long-term loans (10+ years) stood at 3.43% in June, up slightly from December 2023's 3.25%. Under these terms, the same €700,000 loan would cost approximately €3,478 per month.

Consumer loans remained significantly pricier, averaging 4.8% in June.

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