Even in the year of Covid-19, the number of granted real-estate loans has not declined. According to the Central Bank of Luxembourg, €11.17 billion have been financed over the course of 2020.
Interest rates have experienced a small decline. In October, the variable tally was set at 1.35%, which represents a 2-point decline compared to 2019. The fixed rate was set at 1.27%.
Starting 1 January 2021, banks will apply new conditions for real-estate loans, meaning that there will be a new maximum limit based on the buying price of the property. Only people who purchase their first house or apartment will be granted 100% of the property worth. This new condition was adapted by the Committee for Systemic Risks in November.
Over the past 5 years, real-estate prices have on average experienced a 7% increase throughout the country.
