The year 2025 ended with a rebound in interest rates, according to a report from the Luxembourg Central Bank (BCL). The bank noted this week that the most recent mortgage loans negotiated in Luxembourg last year carried higher costs for borrowers.
In December, the average variable rate obtained by homebuyers from Luxembourg’s banks stood at 3.15% – the highest level since July. At this rate, a loan of €700,000 would result in a monthly payment of approximately €3,374.
Fixed-rate loans remain significantly less advantageous in Luxembourg. In December, individuals negotiated loans at an average rate of 3.74% for credit fixed for at least ten years. For a €700,000 loan, this would translate into a monthly payment of €3,595.
For more modest investments, consumer credit rates are slightly down, settling at 4.55% for loans with a term of less than five years.
