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%.
