The dream of buying a home in Luxembourg is showing little sign of becoming more attainable.
According to the Central Bank of Luxembourg’s latest report, mortgage rates are no longer on a downward trajectory, with loans negotiated by individuals with Luxembourg banks remaining prohibitively expensive for many transactions in February.
The variable rate, one of the most commonly used in the country, edged up to 3.07%, compared to an average of 3.01% in January, and has remained broadly stuck at this level since August 2025. For a €700,000 loan spread over 25 years, that translates to a monthly repayment of €3,345.
Fixed rates tell a similarly discouraging story, with banks continuing to show little appetite for flexibility. The rate negotiated in February for loans of more than 10 years rose to 3.85%, up from 3.77% a month earlier and 3.31% in February 2025. On a €700,000 loan over 25 years, that means a monthly payment of €3,637.
There is some brighter news on the consumer credit front, however, where rates have eased to 4.05%, their lowest level in a year.
