Mortgage rates in Luxembourg: today, since 2003, and what a rise would cost you
The official averages on new home loans, the rates banks publish, and a simulator for your own loan. Updated every week. Free, with an e-mail when rates rise.
Average rate on new home loans, Aug 2026
Variable rate
3.19%
+0.20 pt on a year earlier (2.99%)
Floating, or fixed for up to a year
Fixed for 5 to 10 years
3.96%
+0.37 pt on a year earlier (3.59%)
The rate can change after 5 to 10 years
Fixed for more than 10 years
4.01%
+0.43 pt on a year earlier (3.58%)
The rate is set for more than 10 years
Source: ECB / BCL, interest rates on new loans for house purchase in Luxembourg. Published about five weeks after the month ends.
Rates the banks publish
Only three Luxembourg banks publish a home-loan rate on their website, as a representative example. Your own offer depends on your income, own funds and the home.
| Bank | Type | Rate | APR (TAEG) | Checked |
|---|---|---|---|---|
| Spuerkeess | Example rate | 4.00% | 4.12% | 29 Oct |
| BGL BNP | Variable rate | 4.00% | 4.12% | 29 Oct |
| BGL BNP | Fixed for 25 years | 4.60% | 4.79% | 29 Oct |
| BIL | Fixed for 10 years | 4.00% | 4.07% | 29 Oct |
Rates since 2003
Source: ECB / BCL, MFI interest rate statistics. Monthly averages of new loans for house purchase, by how long the rate is fixed. Fixed-rate averages from 2011: before that too few loans were fixed for a steady average.
Show the figures
| Fixed for more than 10 years | Fixed for 5 to 10 years | Variable rate | |
|---|---|---|---|
| 2003 | 3.41% | ||
| 2004 | 3.38% | ||
| 2005 | 3.62% | ||
| 2006 | 4.51% | ||
| 2007 | 4.83% | ||
| 2008 | 4.22% | ||
| 2009 | 2.03% | ||
| 2010 | 1.99% | ||
| 2011 | 3.06% | 3.16% | 2.41% |
| 2012 | 2.57% | 2.66% | 2.02% |
| 2013 | 2.62% | 2.68% | 1.94% |
| 2014 | 2.26% | 2.14% | 1.84% |
| 2015 | 2.00% | 1.98% | 1.74% |
| 2016 | 1.72% | 1.63% | 1.65% |
| 2017 | 1.90% | 1.74% | 1.56% |
| 2018 | 1.93% | 1.77% | 1.45% |
| 2019 | 1.36% | 1.14% | 1.40% |
| 2020 | 1.26% | 1.06% | 1.32% |
| 2021 | 1.44% | 1.20% | 1.34% |
| 2022 | 3.54% | 3.65% | 2.58% |
| 2023 | 4.02% | 4.18% | 5.02% |
| 2024 | 3.25% | 3.34% | 4.04% |
| 2025 | 3.74% | 3.68% | 3.15% |
| 2026 | 4.01% | 3.96% | 3.19% |
Your loan: what if rates rise?
A variable rate follows the market at once. A fixed rate protects you until the end of the fixed period; then the rest of the loan moves to the rate of the day.
Extra per month
+€185
From €1,847 to €2,032 a month: €2,219 more a year, about €49,000 more until the loan is repaid.
Indicative: a level monthly repayment (annuity) and one rate rise that then holds. Your loan contract decides when and how your rate changes; ask your bank for your own figures.
Buying: what the same budget lets you borrow
Banks lend what your monthly repayment can carry. When rates rise, the same repayment carries a smaller loan, so the same budget buys a smaller or cheaper home.
| Rate | You can borrow | Less than today |
|---|---|---|
| 4.01% today | €473,000 | |
| 4.51% +0.5 pt | €449,000 | −€24,000 (−5%) |
| 5.01% +1.0 pt | €427,000 | −€46,000 (−10%) |
| 6.01% +2.0 pt | €388,000 | −€85,000 (−18%) |
| 7.01% +3.0 pt | €353,000 | −€120,000 (−25%) |
Loan a repayment of €2,500 a month pays off over 25 years. Before buying costs and own funds.
What happened last time rates rose
Variable rate
1.28% → 5.02%
Aug 2021 to Dec 2023
The same budget borrowed
−33%
€2,500 a month over 25 years: €642,000 → €427,000
Home prices
−16.3%
Q3 2022 to Q1 2024, all homes, national index
Index, nominal (not adjusted for inflation). Source: BIS, original data STATEC.
This is what happened, not a forecast. Prices also depend on incomes, jobs, new building and how many people move to Luxembourg; in Q1 2026 the index stood 14% below its peak.
Where inflation is forecast to go
Central banks raise rates when inflation is expected to stay above 2%. These are the official forecasts, as published; we do not make our own.
STATEC, Luxembourg
National consumer price index, published Aug 2026
- 2026
- 1.8%
- 2027
- 2.1%
Other scenarios: 1.8% to 3.2% in 2027, depending mainly on energy prices.
Next wage and pension index adjustment expected in Q3 2027.
SourceSource: Eurostat, HICP. Luxembourg’s HICP includes the fuel and tobacco bought by cross-border commuters and visitors, so it moves more with energy prices than the national index STATEC forecasts.
E-mail me when rates rise
We check the banks’ published rates and the official averages every Monday. When one rises by 0.10 point or more, you get one short e-mail with what changed and what it means for a typical loan. Nothing in the weeks when rates hold or fall. Free.
How we work it out
- Average rates: the ECB and BCL statistics on new loans for house purchase in Luxembourg, by how long the rate is fixed. They are averages of all new loans that month, so a single offer can be higher or lower.
- Bank rates: the representative examples Spuerkeess, BGL BNP Paribas and BIL publish on their websites, checked every Monday. Other banks do not publish a rate.
- Your loan: a level monthly repayment (annuity). With a variable rate the rise applies at once; with a fixed rate it applies to what is left to repay when the fixed period ends, over the remaining years.
- Buying power: the loan a monthly repayment pays off over the term, at today’s average rate and after each rise. It leaves out buying costs, own funds and the loan-to-value limits; the affordability calculator includes them.
- We show what rates do to payments and to borrowing, and what happened to prices in 2022–2024. We do not forecast home values.
Sources: ECB / BCL; BIS and STATEC; Eurostat; STATEC and ECB projections; the banks’ websites. Data updated 29 October 2026.
For information only: not financial advice and not a loan offer. We do not rank or recommend lenders.
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