Comparison of the best energy renovation loans in Luxembourg

A selection of offers to save money on your green building loan.
Independent 100% analysis.
Best rate!
BGL BNP Paribas
2.41%
✔️ 75000€ max.
See the offer
2nd best
Spuerkeess
2.49%
✔️ 100000€ max.
✔️ Rate reduction under 30 years old and Zebra Premium account holder
See the offer
3rd best
ING Luxembourg
2.57%
✔️ 100000€ max.
See the offer
The rates may vary according to your profile, your project and your financial situation.

Our advice for choosing the best construction loan

How to choose a home energy renovation loan?

Find the best rate, depending on the nature of the work

If you want to borrow money to carry out work in Luxembourg, we advise you to compare offers beforehand. Some banks offer very low rates, while others offer high rates. This can make a difference of several hundred euros (or even more) on the total cost of your credit. It is best to compare the offers before signing.

Why take out a renovation loan?

Work is expensive. Sometimes it is necessary to 20,000, 30,000 or moreThis is especially true for structural work (facade, wall construction, thermal insulation of the house, etc.). A home renovation loan is generally even higher, because of the cost of the work.

This is why loans are generally the preferred solution for Luxembourgers: they allow you to carry out large-scale work quickly. However, the loan has a cost, which is determined in part by the interest rate charged by the bank (the rate at which it agrees to lend you money).

The alternative is to save every month until you reach the amount you need, but this can take a long time. If your work is urgent, don't hesitate to take out a loan. In addition, you can deduct certain expenses from your taxes each year.

Renovation loan: is it more expensive in Luxembourg?

In Luxembourg, rates are relatively similar to the European average. However, inflation, the Covid crisis, the war in Ukraine, and more recently the rise in key market rates have pushed up the rates for home loans. We advise you to compare offers carefully to find the best rate for your project.

Attention The rates indicated are those communicated by the banks. This is their most attractive offer. However, this rate must then be personalised according to your financial situation (income, type of employment contract) and your current indebtedness. Depending on your situation, you may not be able to take advantage of the rates communicated by the banks, which are listed on this site.

What is the tax advantage of a renovation loan?

In Luxembourg, when you make a loan, you can deduct the interest expense of your tax return, in the limit of €672 per year. However, you must also include in this calculation other deductible expenses subject to the same limits, such as liability your home insurance, or your car insurance.

If your insurance already saves you €672 a year on your taxes, you will not be able to deduct the interest on your loan.

That's why it's important to compare offers before taking out a loan: by choosing the lowest rate, you can reduce the cost of your credit, and thus minimise your expenses and optimise your tax return.

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How can I get help with my work?

In some cases, the Grand Duchy finances up to 30% of the cost of your workwithin the limit of 10000€ maximum per household. But not all work is eligible for this aid.

  • If you make decorative or structural work that do not involve energy improvements, in which case you will not be eligible for government support. Unless you do the following work, which is also eligible for State aid :
    • installation of a bathroom and installation of a toilet
    • crawl space
    • wastewater connection
    • installation or replacement of shutters
    • facade renovation
    • laying of essential cables, pipes and conduits: water, electricity, gas
  • If you are undertaking a energy retrofit of your home, you will be eligible for this assistance. Here is an example of the type of work covered by this aid:
    • Installation of an ecological central heating system (heat pump, solar panels)
    • Thermal insulation of the dwelling (installation of insulating material in the walls, on the roof)
    • Complete roof repair and insulation
    • Installation of double or triple glazing

By carrying out an energy renovation, you can also :

  • Reduce your bill of gas or electricity each month (some residents have managed to reduce their bill by 80%!)
  • Feel better at home (because it will be warm in winter and cool in summer!)
  • Benefit froma cheaper renovation loan for your work: banks offer very attractive rates for thermal renovation work.

Do not hesitate to consult our comparison of renovation loans at the top of this page.

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Frequently Asked Questions (FAQ)

What is the rate for a renovation loan?

The average rate varies each month and is highly dependent on economic conditions. At the beginning of 2022, these rates were below 2%. In the summer of 2022, they exceed 3%. In addition, it depends on the nature of your work: if it is an energy renovation, you could benefit from a discount on the rate of your loan.

How can I borrow money to carry out work?

If you need money quickly to do some work, you can take out a home improvement loan from a bank. These loans are dedicated to major works in housing. You can benefit from aid and a better rate if you also undertake an energy renovation of your home.

What is the duration of a renovation loan?

A works loan can be taken out for a period of 12 months to 60 months (i.e. from 1 year to 5 years). The longer the period, the higher the cost of the credit (and the higher the interest rate). However, if the repayment period is long, your monthly payments will be lower.

What work is included in the mortgage?

You can include any type of work in your home loan, as long as you include quotes and communicate the list of works and their cost to your banker. If you wish to carry out energy renovation work, you may be eligible for public grants and subsidies.

How does a construction loan work?

A home improvement loan works exactly like a consumer credit: you borrow money over a fixed period of time, with an interest rate defined in advance, and you pay back monthly instalments. If your work involves renovating your home for energy efficiency, you can take advantage of very attractive rates.

How to finance renovation work?

Here is the formula to calculate the cost of your renovation loan: cost of credit = monthly instalments x loan period - amount borrowed

What is the current loan rate for work?

To finance work on your flat or house, credit rates vary greatly from one month to the next. We advise you to consult this site regularly to follow the evolution of rates: we update it as regularly as possible.

What kind of renovation aid in 2022?

If you want to renovate your home, you should know that you can benefit from public aid covering 30% of the cost of the work. However, this aid is only available for thermal and energy renovation work in your flat.

How can I borrow money to carry out work?

Compare the loan offers available on this site, choose the bank that offers the best rate, and then apply on the bank's website. The bank will contact you back to ask for some documents, and then you can sign your loan application.

What rate for an energy renovation loan?

If you wish to carry out thermal renovation work on your home, you can reduced rate for your credit. This rate will be lower than the rate offered for a conventional home improvement loan. Ask the bank of your choice for advice on what the customised rate might be for your renovation project.

What kind of support is available for energy renovation in Luxembourg?

If you are carrying out a thermal or energy renovation of your flat or house, you can benefit from state aid corresponding to 30% of the cost of the work, up to a maximum of €10,000. However, the final support depends on your situation and your income.

What work is eligible for energy renovation assistance?

Any work that aims to reduce the energy consumption of your home is eligible for support. These include, for example, installing thermal insulation, repairing your roof, drying out damp walls or installing central heating. You can find the full list of eligible works at this page.

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