Financing
Interest rates: the window that reopens in 2026
After two years of tightening, the European Central Bank begins a gradual easing. What this changes for your project.
After the 2024 peak, mortgage rates offered to Luxembourg households are settling at more favourable levels. The 20-year fixed rate now hovers around 3.1 %, compared to 4.3 % eighteen months ago.
A mechanical effect on borrowing capacity
At an equivalent monthly payment, a household's borrowing capacity has risen by around 12 % compared to early 2024. In practice, a €750,000 budget a year ago now translates to close to €840,000.
“The window is not unlimited: the best-prepared buyers will be served first.”
Fixed or variable?
Long-term fixed remains the prudent route for a primary residence. Capped variable rates can make sense for a shorter-horizon rental investment, alongside an informed broker.
We advise our buying clients on the overall calibration of their financing, well before selecting a property.
