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.
Read also
Salary expectations: Breaking down the real cost of buying property in Luxembourg
