Compare the rates (APR) of BIL, Spuerkeess, Raiffeisen and BGL. Simulate your monthly payments and borrowing capacity, and find the best rate for your project · Data updated on 10 September 2026
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The table below shows the average rates on new mortgages granted to resident households, by initial rate-fixation period. According to the latest available BCL data (June 2026), the variable rate has climbed back to 3.19% (+9 basis points in one month) while fixed rates span 3.72% (1–5 years) to 4.02% (15–20 years). Two takeaways: the yield curve has turned very flat — just 0.30 point separates the cheapest fixation from the most expensive — and the gap between variable and fixed has narrowed to roughly half a point, making the fixed rate far more attractive than in 2024-2025. Volumes confirm the appetite: €295m of new variable-rate loans and €185m on fixations beyond 10 years in June (+€10m in a month). Caution: these averages cover June, before the summer rebound in inflation — see our ECB context analysis below.
| Rate-fixation period | Average rate | One-month change |
|---|---|---|
| Variable (fixation ≤ 1 year) — €295m | 3.19% | +0.09 pt |
| Fixed 1 to 5 years — €26m | 3.72% | −0.02 pt |
| Fixed 5 to 10 years — €61m | 3.80% | −0.13 pt |
| Long fixation (> 10 years) — from 3.83% to 4.02% · €185m of volume in June (+€10m) | ||
| Fixed 10 to 15 years | 3.89% | −0.08 pt |
| Fixed 15 to 20 years | 4.02% | +0.18 pt |
| Fixed 20 to 25 years | 3.83% | +0.25 pt |
| Fixed 25 to 30 years | 3.86% | −0.13 pt |
| Fixed > 30 years | 4.01% | +0.13 pt |
BIL shows one of the lowest APRs: 3.77% (example €200,000 over 25 years, 10-year fixed). Finances the whole Greater Region, terms 10–35 years, salary direct deposit required to avoid a surcharge. BIL user reviews.
The State bank: APR 3.86% (example €500,000 over 35 years) and the longest term on the market (35 years), with no direct-deposit condition. A safe choice for first-time buyers. Spuerkeess user reviews.
A cooperative bank: R-Logement at fixed, variable or mixed rate over 10–30 years, indicative APR around 4.00%. It is the only bank in the panel publishing nothing online: no representative example, no priced simulator — you have to go through an adviser. First-time-buyer support and state aid (Klima-Agence). Raiffeisen user reviews.
Maximum flexibility: fixed, variable or revisable rate, online agreement in principle, climate loan, financing up to 90% (100% under conditions). Its official simulator shows an indicative rate of 4.00%, i.e. an APR of 4.16% — the highest in our panel, though only 0.16 point above Raiffeisen. Worth noting: its representative example fixed for the whole 25-year term comes out markedly higher, at a 4.60% borrowing rate (APR 4.79%) — a useful reminder that a simulator rate commits no one. BGL user reviews.
Go further: our guides on the renovation loan, home insurance and tax return.
The easing cycle is well and truly over. After raising its key rates on 11 June 2026 (+0.25 pt, deposit rate to 2.25%) — its first hike since September 2023 — the ECB paused on 23 July, judging itself "well positioned" to navigate uncertainty and deferring a full assessment to September. The backdrop has since deteriorated: eurozone inflation rebounded to 3.3% in August 2026 (Eurostat flash estimate of 1 September), its highest since September 2023, driven by a surge in energy (+14.3% year-on-year) amid the Middle East conflict. The next Governing Council meeting, on 10 September 2026, will come with fresh Eurosystem projections: that is the date to watch. Bank scales do not follow policy rates mechanically, but the window of the lowest rates is closing.
Historical benchmark: over 2015–2025, each one-point rate rise came with about a 6-point fall in the number of credit buyers. The decisions of the BCL and the ECB are therefore worth watching closely.
The Bëllegen Akt (tax credit on notary deeds) reaches up to €45,000 per person (€90,000 per couple) for a main residence, for deeds signed from 16 July 2026 (raised from €40,000). Add the exemption from duties on the construction share of an off-plan (VEFA) purchase at most 80% complete, and the State guarantee, which helps first-time buyers without a sufficient down payment access credit: the July 2026 package raises the guaranteed share from 30% to 40% of the project amount and the loan-rate ceiling from 3% to 6%.
The interest subsidy remains the most under-used aid: the State covers between 0.25% and 3.50% of the interest rate depending on household income and composition. As of 10 September 2026, the scale in force considers a loan of €200,000, increased by €20,000 per dependent child, capped at €280,000; the July 2026 package would raise these to €250,000 (€300,000 if a borrower is 35 or under), +€30,000 per child and a €370,000 ceiling, subject to the law being voted — see the detail in our housing reform section.
On the renovation side, the Klima-Agence grants and PRIMe House combine with the climate loan: the State covers 1.5 points of interest (within 10% of capital, i.e. €10,000 on €100,000 borrowed over a maximum of 15 years), and the loan becomes interest-free for households whose taxable income does not exceed €60,000, who also get a PRIMe House raised to 150%. Add the tax-deductibility of interest and of outstanding-balance insurance.
Need to finance works? See our renovation-loan guide and the energy grants in Luxembourg.
The essentials: for deeds signed from 16 July 2026, the Bëllegen Akt tax credit rises from €40,000 to €45,000 per person (€90,000 for a couple), which allows a purchase of about €640,000 with no registration duties; buying off-plan (VEFA) a main residence that is at most 80% complete is taxed only on the land value, for three years (until 16 July 2029); and the loan taken into account for the interest subsidy rises from €200,000 to €250,000 — €300,000 if at least one borrower is 35 or under — with €30,000 per dependent child instead of €20,000. In practice: less deed cost to fund out of your own savings, and a lighter monthly payment for young households.
| Measure | Before | After | From |
|---|---|---|---|
| Acquisition costs | |||
| Bëllegen Akt — per person | €40,000 | €45,000 | 16 July 2026 |
| Bëllegen Akt — couple | €80,000 | €90,000 | 16 July 2026 |
| Purchase price free of registration duties | ≈ €570,000 | ≈ €640,000 | 16 July 2026 |
| Off-plan (VEFA) at most 80% complete, main residence | Duties on land and on the already-built share | Duties on the land value only | 16/07/2026 → 16/07/2029 |
| Individual housing aid | |||
| Loan taken into account for the interest subsidy | €200,000 | €250,000 | Entry into force of the law |
| … if one borrower is 35 or under | €200,000 | €300,000 | Entry into force of the law |
| Increase per dependent child | €20,000 | €30,000 | Entry into force of the law |
| Maximum ceiling, general scheme | €280,000 | €370,000 | Entry into force of the law |
| Purchase & savings grants on affordable housing | Private market only | Open to buyers 35 or under | Entry into force of the law |
Three measures target investors. VAT drops to 8% for creating rental housing with a social purpose, under cumulative conditions: maximum floor area of 120 m², price per m² at or below the median published by the Observatoire de l'Habitat for the region and dwelling size, rental yield capped at 4% of net invested capital, letting for at least ten years and a tenant certified as eligible by the Ministry of Housing. A new accelerated depreciation scheme, “three times 6”, allows 6% a year for 6 years as long as the depreciable base does not exceed €600,000 per building; above that threshold, the rate is 2% on the whole base, with no time limit. Acquisitions made in 2026 may opt for the old or the new scheme; from 1 January 2027, the new scheme alone applies to new acquisitions, earlier schemes running to their term. Finally, a Housing Bond of €250 million — interest exempt from the 20% final withholding tax — is due to launch in early 2027, and the State is putting €300 million more into its off-plan (VEFA) acquisition programme (after a first €480 million envelope that acquired or reserved 830 affordable homes), now open to partial acquisition of projects.
A buy-to-let project is not financed like a main residence: banks generally cap financing at 80% of value. Compare the rates and financing conditions before committing.
Status as of 10 September 2026 — the package was announced on 16 July 2026 and the Government Council adopted the first two bills on 24 July 2026: the amendment to the law of 30 July 2002 (tax measures on building land and residential property, which lifts the Bëllegen Akt to €45,000) and the implementation of the temporary exemption from registration and transcription duties on the already-built share of an off-plan sale. Those texts are now going through the Chamber of Deputies; they have not yet been voted. The increases to individual housing aid (interest subsidy, purchase grant) are not in force either: as of 10 September 2026, Guichet.lu still shows the current scale (loan of €200,000, +€20,000 per child, €280,000 ceiling). Two measures do, however, apply to deeds signed from 16 July 2026: the raised Bëllegen Akt and the VEFA exemption. If your deed is signed between the announcement and the entry into force of the text, the benefit is not automatic: a claim must be filed with the Administration de l'enregistrement, des domaines et de la TVA (AED). Keep the notarial deed and the mortgage registration certificate safe. The other measures (8% VAT, accelerated depreciation, Housing Bond) will apply from the entry into force of the law, with no retroactive effect. The “free of registration duties” thresholds are orders of magnitude computed at the overall 7% rate (6% registration + 1% transcription); the €640,000 threshold is the one communicated by the government. Sources: press release of 16 July 2026 and the “7 measures” document (PDF), plus the summary of the Government Council of 24 July 2026. See also the permanent State aid and our monthly-payment calculator.
| Criterion | BIL | Spuerkeess | Raiffeisen | BGL BNP Paribas |
|---|---|---|---|---|
| Fixed APR (indicative) | 3.77% | 3.86% | 4.00% | 4.16% |
| Where the rate comes from | Representative example €200,000 / 25 yrs, 10-yr fixed | Official simulator €500,000 / 35 yrs | Indicative rate not published online | Official simulator indicative rate 4.00% |
| Conditions | ||||
| Maximum term | 35 yrs | 35 yrs | 30 yrs | 30 yrs |
| Rate types | Fixed / variable | Fixed / variable | Fixed / variable / mixed | Fixed / variable / revisable |
| Max financing | up to 100%* | up to 100%* | up to 100%* | 90% (100%*) |
| Online agreement in principle | — | ✓ | — | ✓ |
| Green / climate loan | ✓ | ✓ | ✓ | ✓ |
| Salary direct deposit required | ✓ | — | — | ✓ |
* Under conditions (down payment, State guarantee, profile). APRs taken from representative examples and official simulators on 10 September 2026. The rates shown do not all share the same origin or fixation period: BIL publishes a representative example fixed for 10 years, Spuerkeess a 35-year simulator, BGL an indicative simulator rate, and Raiffeisen publishes nothing online. At similar APRs the length of protection can differ widely: always ask for the ESIS. Regulatory reminder: the loan-to-value ratio is capped at 100% (first-time buyer), 90% (other main residence) and 80% (buy-to-let).
