Borrowing capacity in Luxembourg: how much you can borrow
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Skimming?
We've prepared the shortcut for you.
This is for you if
You have not viewed anything yet and want to know what price to aim for.
You are wondering what salary you need to borrow €200,000 or €300,000.
You are buying as a couple, or you are a cross-border worker, and want to know what changes.
Your bank gave you a figure and you want to understand it.
you are looking for how much you need to put down: see our guide on the down payment for a mortgage.
Do the maths with your figures
How much you can borrow
The amount depending on the term
- 15 years€216,000
- 20 years€264,000
- 25 years€303,000
- 30 years€335,000
A longer term increases the amount, but also the total cost of interest.
trigger calculation, textbook assumption: the bank decides based on your whole file. Loan with constant monthly payments, amounts rounded to the nearest thousand. Default rate: BCL average for new home loans fixed for over 10 years, August 2026 (4.01%), excluding fees. The monthly payment includes neither insurance nor arrangement fees.
How the bank decides how much to lend you
The law requires the bank to assess your creditworthiness thoroughly before lending to you (law of 23 December 2016 (ouvre dans un nouvel onglet)). In practice:
- It looks at your income and your expenses, including your existing loans, based on verifiable documents.
- It cannot rely mainly on the value of the property, nor bet on it going up.
- It only lends to you if you are likely to be able to repay.
- It must tell you in advance which documents to provide, and by when.
- If it refuses because of a database it consulted, it tells you so, without delay and free of charge.
Why the figures differ from one bank to another. The law says what the bank must check, not how much it must lend. Each bank therefore sets its own thresholds: the share of your income the monthly payment can take, and the amount you must have left to live on once the payment is made. These thresholds also change with your profile (employment contract, children, other loans), the length of the loan and the type of rate. That is why one website talks about a third of your income and another about half: neither is "the" rule.
What the CSSF does set. CSSF Regulation 20-08 sets a single limit: the share of the property financed by loans, called LTV (CSSF Regulation 20-08 (ouvre dans un nouvel onglet)). It does not concern your income. It is detailed further down.
How much you can borrow based on your monthly payment
trigger calculation, repayment loan with constant monthly payments, amounts rounded to the nearest thousand. Rates: BCL averages for new mortgage loans in August 2026 (BCL (ouvre dans un nouvel onglet)): 4.01% for a rate fixed for more than 10 years, 3.19% for a variable rate or one fixed for 1 year at most.
| Monthly payment | 20 years at 4.01% | 25 years at 4.01% | 30 years at 4.01% | 25 years at 3.19% |
|---|---|---|---|---|
| €1,000 | €165,000 | €189,000 | €209,000 | €207,000 |
| €1,500 | €247,000 | €284,000 | €314,000 | €310,000 |
| €2,000 | €330,000 | €379,000 | €418,000 | €413,000 |
| €2,500 | €412,000 | €473,000 | €523,000 | €516,000 |
| €3,000 | €495,000 | €568,000 | €628,000 | €620,000 |
How to read it. Choose the monthly payment your budget can handle, and read the capital it repays. A longer term increases the amount, but also the total cost of interest.
Three limits of this table. BCL rates are averages, excluding fees: your own rate will depend on your file. The 3.19% column assumes a rate that does not move, whereas a variable rate can go up. And the monthly payment includes neither insurance nor arrangement fees. Last month's rates are on our mortgage rates page.
What salary to borrow €150,000, €200,000, €300,000 or €500,000?
The answer depends on your bank's rule. To give you a rough idea, we use a textbook assumption, not a bank rule: the monthly payment does not exceed one third of your net monthly income. Term 25 years, rate 4.01% (trigger calculation, rounded).
| Amount borrowed | Monthly payment | Net monthly income with the "one third" assumption |
|---|---|---|
| €150,000 | €793 | about €2,400 |
| €200,000 | €1,057 | about €3,200 |
| €300,000 | €1,585 | about €4,800 |
| €400,000 | €2,114 | about €6,300 |
| €500,000 | €2,642 | about €7,900 |
If your bank applies a different share, redo the calculation: income needed = monthly payment ÷ accepted share. As a couple, what counts is your household's net income, minus your outgoings.
What this table does not tell you: the bank also looks at what you have left to live on, your other loans, your down payment, and how stable your income is. Two people on the same salary can therefore get different amounts.
The only way to get your real figure is to submit your file. A broker compares banks for you and tells you what each one would be willing to lend you.
CSSF caps: the share of the price the bank can finance
Since 1 January 2021, CSSF Regulation 20-08 has limited the ratio between your loans secured on the property and the value of that property (CSSF Regulation 20-08 (ouvre dans un nouvel onglet)):
| Your project | Maximum share financed |
|---|---|
| First-time buyer, main residence | 100% |
| Main residence, not a first-time buyer | 90% (up to 100% for at most 15% of the bank's annual loans to this category of borrowers) |
| Other purchase, including buy-to-let | 80% |
- First-time buyer means: you have never had a mortgage for a property in Luxembourg. In a joint application, you must both be first-time buyers (CSSF FAQ (ouvre dans un nouvel onglet)).
- The value used is the lower of the price and an independent expert's valuation. If the expert values the property below the price, the bank finances less.
- The difference between this value and the loan must come from your own funds. Until 31 March 2027, the State guarantee can count as own funds.
- The temporary exemption for buy-to-let (up to 95%, for at most 10% of each bank's annual buy-to-let loans) ended on 30 June 2025 (CSSF Regulation 24-10 (ouvre dans un nouvel onglet)).
Your real capacity is the lower of the two limits: what your income allows, and what your down payment allows. Example, trigger calculation: you are not a first-time buyer, you are buying your main residence and you have a €50,000 down payment, with purchase costs already paid separately. With 90% financed, your down payment covers 10% of the price: the CSSF cap in principle limits the price to €500,000, even if your income would allow more (unless the bank fits you into its 15% margin of loans above 90%).
The details, profile by profile, are in down payment for a mortgage. And do not forget purchase costs: property purchase costs.
Alone or as a couple
As a couple, the bank adds up your income and your outgoings. A co-borrower often increases the amount, but their existing loans count too.
First-time buyer status can be lost as a couple. If one of you has already had a mortgage for a property in Luxembourg, your joint loan is no longer classed as "first-time buyer": the cap drops from 100% to 90% for a main residence (CSSF FAQ (ouvre dans un nouvel onglet)). After a separation and the sale of a jointly owned property, neither former owner is a first-time buyer any more.
Aid takes the number of borrowers into account. Examples:
- State guarantee: income ceiling of €101,874.03 for one borrower, €141,048.97 for several (2025 values, Guichet.lu (ouvre dans un nouvel onglet)).
- Interest subsidy: it currently applies to a loan of up to €200,000, plus €20,000 per child, up to a limit of €280,000 (Guichet.lu (ouvre dans un nouvel onglet)). The July 2026 Booster announces higher ceilings, including €300,000 if a borrower is 35 or younger: announced, not yet voted as of 16 October 2026.
- Bëllegen Akt: €40,000 per buyer, so as a couple, one each (AED (ouvre dans un nouvel onglet)). Lower costs mean more of your savings available for the down payment.
All the aid is in our guide Bëllegen Akt and home purchase aid.
Cross-border workers: what changes in the calculation
Your income is Luxembourgish, your life is across the border. The bank assesses your income and your expenses: your taxes, your rent or your outgoings in your country of residence count as much as your salary.
You are buying in Luxembourg. The CSSF caps apply: the regulation covers properties located in Luxembourg (CSSF Regulation 20-08 (ouvre dans un nouvel onglet)). Good to know: owning a home in France, Belgium or Germany with a loan from there does not take away your first-time buyer status, which only looks at loans for a property in Luxembourg (CSSF FAQ (ouvre dans un nouvel onglet)).
You are buying in your country of residence. The CSSF regulation does not cover that property: the rules of the country where it is located apply, and the bank lending to you follows its own.
Luxembourg aid requires you to live in Luxembourg. The State guarantee requires a home in Luxembourg as your main residence, a right of residence of more than 3 months and registration in the national register (Guichet.lu (ouvre dans un nouvel onglet)). The Bëllegen Akt requires you to live in Luxembourg or to commit to moving into the property (Guichet.lu (ouvre dans un nouvel onglet)). If you are buying in Luxembourg to move there, the Bëllegen Akt is open to you. The State guarantee, the grants and the interest subsidy also require that neither you nor your household own more than a third of another home, here or abroad: if you keep your house across the border, they remain closed to you (Guichet.lu (ouvre dans un nouvel onglet)).
How to increase your capacity
- Extend the term: at €1,500 a month and 4.01%, you go from about €247,000 over 20 years to €314,000 over 30 years (trigger calculation). The loan costs more in total.
- Pay off a small existing loan (car, consumer credit): the bank counts your existing commitments, one monthly payment less frees up room.
- Borrow as a couple, if the other person has a stable income and few loans.
- Increase your down payment, or use the State guarantee if you are eligible: that is what lifts the CSSF limit.
- Reduce your costs with the Bëllegen Akt, to keep your savings for the down payment.
- Have a broker compare several banks: their thresholds are not the same, so neither is your amount.
Common mistakes
Aiming for the maximum.
The amount you are offered is not the amount you should borrow: keep a margin for the unexpected.
Forgetting purchase costs.
They are not financed within the CSSF limit: your savings must cover them.
Taking the average rate as your rate.
It is an average, excluding fees and insurance.
Believing a threshold read on a website is the law.
The only regulatory cap concerns the share of the price, not your income.
Signing the preliminary sale agreement before knowing your amount.
At the very least, include a loan condition precedent.
Frequently asked questions
trigger calculation over 25 years at 4.01%: €1,057 a month. With the textbook assumption of a monthly payment equal to a third of your income, you need about €3,200 net a month. Your bank may use a different share.
With the one-third assumption, your monthly payment would be €1,000: about €189,000 over 25 years at 4.01%, or €209,000 over 30 years (trigger calculation). The real figure depends on your outgoings and your bank.
About €793 a month at 4.01%, and €726 at 3.19%, excluding insurance (trigger calculation).
No. The law requires the bank to check your creditworthiness, without setting a percentage. The CSSF regulation limits the share of the price financed (100, 90 or 80%), not the share of your income.
Yes. The bank assesses your income and your expenses where you live. For a property in Luxembourg, the CSSF caps apply; State aid also requires you to live there.
Next step
You now know your rough figure. Next, check what you need to put down: down payment for a mortgage, and what the costs are: property purchase costs. To read a loan offer, see our guide mortgage in Luxembourg, and to know when an intermediary is worth it, mortgage broker.
And to get your real figure, have a broker compare your loan: the form is further up the page.