Mortgage rates in Luxembourg remain stable overall, with variable rates edging down towards 3% while fixed rates hold steady, and consumer credit showing a slight dip that could herald improvement in 2026.

The Central Bank of Luxembourg has published the most recent rates negotiated by the country's banks, bringing some good news for borrowers with variable-rate loans.

The average variable rate, one of the most commonly used in the Grand Duchy, is now edging closer to 3%. In July, new mortgage contracts were agreed at an average of 3.13%. For a property loan of €700,000 over 25 years, that translates into estimated monthly repayments of €3,367.

Fixed rates, however, remain stable. After dropping significantly in early 2024, they have barely moved since February. In July, the average fixed rate negotiated for mortgages lasting more than ten years was 3.49%, slightly higher than June's 3.43%. That equates to around €3,501 in monthly repayments for the same €700,000 loan.

Consumer credit has dipped slightly, standing at 4.67% for loans of under five years. Yet such loans tend to be higher in the second half of the year, meaning this trend could signal a more positive outlook for 2026.