Mortgage rates in Luxembourg: this month's rates
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This is for you if
You are going to sign a loan in the coming months and want a benchmark.
You are torn between fixed and variable.
You have a variable rate and want to know where rates stand.
You are comparing a bank's offer with the market average.
Rates over the last 12 months
Average rates on new home loans
In August 2026, the rate fixed for over 10 years was on average 0.82 points above the variable rate (4.01 % versus 3.19 %). Over 12 months, it went from 3.49 % (September 2025) to 4.01 %, a change of +0.52 points. These are averages: the rate a bank would offer you depends on your file.
See the figures
| Month | Variable | Fixed 1 to 5 years | Fixed 5 to 10 years | Fixed over 10 years |
|---|---|---|---|---|
| September 2025 | 3.08 % | 3.30 % | 3.65 % | 3.49 % |
| October 2025 | 3.09 % | 3.40 % | 3.59 % | 3.71 % |
| November 2025 | 3.07 % | 3.27 % | 3.55 % | 3.75 % |
| December 2025 | 3.15 % | 3.30 % | 3.68 % | 3.74 % |
| January 2026 | 3.01 % | 3.30 % | 3.52 % | 3.77 % |
| February 2026 | 3.07 % | 3.33 % | 3.60 % | 3.85 % |
| March 2026 | 3.07 % | 3.54 % | 3.73 % | 3.79 % |
| April 2026 | 3.12 % | 3.53 % | 3.83 % | 3.85 % |
| May 2026 | 3.10 % | 3.74 % | 3.93 % | 3.88 % |
| June 2026 | 3.19 % | 3.72 % | 3.80 % | 3.94 % |
| July 2026 | 3.17 % | 3.72 % | 3.90 % | 3.86 % |
| August 2026 | 3.19 % | 3.75 % | 3.96 % | 4.01 % |
Source: BCL, interest rates on new housing loans to households. Market averages, latest month published: August 2026. “Variable” also includes rates fixed for 1 year or less.
This month's average rates
Average rates on new home loans to households, by the period for which the rate is fixed (BCL, table 3.1 (ouvre dans un nouvel onglet)):
| Type of rate | August 2026 | July 2026 | August 2025 |
|---|---|---|---|
| Variable or fixed for 1 year at most | 3.19% | 3.17% | 2.99% |
| Fixed for 1 to 5 years | 3.75% | 3.72% | 3.24% |
| Fixed for 5 to 10 years | 3.96% | 3.90% | 3.59% |
| Fixed for over 10 years | 4.01% | 3.86% | 3.58% |
Source: BCL, monthly series, file updated on 2 October 2026. These are annual rates excluding fees.
What one percentage point changes in your monthly payment
Monthly payments on a 25-year loan, excluding insurance (trigger calculation):
| Amount borrowed | At 3.19% | At 4.01% | At 5.01% |
|---|---|---|---|
| €300,000 | about €1,452 | about €1,585 | about €1,756 |
| €400,000 | about €1,937 | about €2,114 | about €2,341 |
| €500,000 | about €2,421 | about €2,642 | about €2,926 |
The first two columns use the BCL average rates for August 2026 (variable and fixed for over 10 years). The last one adds one point to the long fixed rate.
Key point: on €300,000 over 25 years, one extra point means about €170 more per month and about €51,000 more in interest over the term (trigger calculation).
Your own rate depends on your application, your down payment and the bank. A broker can ask several banks for yours: have your real rate worked out.
Why your rate will differ from the average
- It is a weighted average. The BCL averages the annualised agreed rates of all new contracts, weighted by their amounts (BCL (ouvre dans un nouvel onglet)). A large loan weighs more than a small one.
- Renegotiations are included. For the BCL, a "new contract" also covers an existing loan whose terms have been renegotiated.
- Excluding fees. Fees and insurance are not in this rate. To compare offers, look at the APRC (annual percentage rate of charge, TAEG in French), which includes them (law of 23 December 2016 (ouvre dans un nouvel onglet)).
- A sample of banks. The statistic is based on data collected from 73 credit institutions, then extrapolated.
How to read a loan offer and compare it with another: our guide to home loans.
Fixed or variable, depending on your profile
There is no one right choice for everyone. A few pointers:
| Your profile | Option | What you accept |
|---|---|---|
| Tight budget, monthly payment that must not move | Long fixed rate | A higher starting rate (4.01% on average in August 2026 for over 10 years) |
| You have some room every month | Variable | A monthly payment that can go up (3.19% on average in August 2026) |
| You want visibility without committing for 20 years | Fixed for 5 to 10 years | A renegotiation at the end of the fixed period |
What the law gives you. With a rate that can change (except a rate fixed for at least 5 years and then renegotiated, which has its own illustration), the bank must show you in the ESIS sheet (FISE in French) an additional APRC illustrating a sharp rise in the rate, and warn you if your rate has no cap (law of 23 December 2016 (ouvre dans un nouvel onglet)). Whatever your rate, you can repay early at any time, without a penalty; any compensation is capped at 6 months of interest if the home has been your main residence for at least 2 years (up to €450,000 repaid).
Example: a variable rate that rises (trigger calculation). €300,000 over 25 years at the average variable rate for August 2026 (3.19%): about €1,452 per month. If the rate went up by one point from the start, the monthly payment would rise to about €1,615, i.e. €163 more. A later rise weighs a little less, because there is less capital left to repay.
Where the BCL publishes these rates
In its statistical series "Capital markets and interest rates" (Marchés de capitaux et taux d'intérêt), the BCL keeps a monthly series, table 3.1: the rates applied by Luxembourg banks to euro deposits and loans, for new contracts (BCL (ouvre dans un nouvel onglet)). Home loans to households are broken down by the period for which the rate is fixed. The file is in Excel format.
The figures come with a delay: in mid-October 2026, the latest month available is August 2026.
Common mistakes
Taking the average as your rate.
It is a benchmark: your offer depends on your application.
Comparing rates instead of APRCs.
The BCL rate excludes fees; the APRC on your offer includes fees and compulsory insurance.
Waiting for "the right moment".
Nobody knows next month's rates. What matters is a monthly payment you can keep up, even if the rate moves.
Forgetting that a variable rate can go up.
Look at the APRC "in case of a rise" that the bank must show you.
Frequently asked questions
According to the latest BCL figures (August 2026): 3.19% variable, 3.75% fixed for 1 to 5 years, 3.96% fixed for 5 to 10 years and 4.01% fixed for over 10 years. These are averages, excluding fees.
Nobody can say for sure, and this page makes no forecast. The facts: over the last 12 months published, fixed rates have gone up, and the variable rate has stayed at around 3.0 to 3.2%.
In the BCL's table 3.1, under "Capital markets and interest rates" (Marchés de capitaux et taux d'intérêt) in its statistical series. It is a monthly series: one row per month.
Because the BCL average mixes all applications and all banks, renegotiations included. Your rate depends on your profile, your down payment, the term and the bank. To find out whether your offer is a good one, have a broker compare it.
On €300,000 borrowed over 25 years, about €170 more per month (trigger calculation, from 4.01% to 5.01%).
Update history
- October 2026: BCL figures for August 2026 (BCL file updated on 2 October 2026).
Further reading
- Buying a home in Luxembourg: the steps, the budget and the subsidies
- Home loans in Luxembourg: conditions, term and comparing offers
- Borrowing capacity: how much you can borrow
- Down payment and home loans with no down payment
- Mortgage broker
And to take action: have a broker compare your loan, the form is further up the page.