How to Get a Mortgage in Luxembourg as a Foreigner
Luxembourg offers an attractive landscape for property financing, especially for foreign buyers seeking to invest in its robust real estate market. The country
Luxembourg offers a range of financing options for real estate investors, with competitive interest rates and a variety of mortgage products tailored to different needs. The market is supported by a stable banking sector, and foreign investors are welcomed with specific mortgage products designed to accommodate their requirements. The process typically takes 4-6 weeks, with a high approval rate, making Luxembourg an attractive destination for property investment.
Foreign buyers in Luxembourg typically need a larger deposit compared to residents. Most banks require 25-40% down payment for non-resident mortgages. Plan your financing accordingly.
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Inflation Rate
1.7%
Interest Rate
3.65%
• High quality of life index (207/200) attracts international residents and supports long-term value.
• Strong safety ratings (66/100) enhance appeal for families and retirees.
Residential properties, first-time buyers
Contact: contact@bcee.lu
Foreign buyers, investment properties
Contact: info@bgl.lu
Commercial real estate
Contact: contact@ing.lu
Luxury properties
Contact: info@bdl.lu
Eco-friendly homes
Contact: contact@raiffeisen.lu
Tip 1: Focus on properties in Luxembourg City for capital appreciation.
Tip 2: Consider Esch-sur-Alzette for higher rental yields.
Tip 3: Look into eco-friendly properties for tax incentives.
Tip 4: Diversify investments across different cities.
Tip 5: Monitor infrastructure developments for growth opportunities.
Tip 6: Engage local real estate agents for market insights.
Tip 7: Evaluate the impact of EU regulations on property laws.
Tip 8: Consider long-term rental demand in university areas.
Tip 9: Stay updated on interest rate trends for refinancing options.
Tip 10: Explore government-backed loans for first-time buyers.
| City | Price/m² | Rental Yield | Price Growth | Popular Areas |
|---|---|---|---|---|
| Luxembourg City | €12,000 | 3.5% | +6.0% YoY | Kirchberg, Belair, Limpertsberg |
| Esch-sur-Alzette | €5,000 | 4.5% | +4.0% YoY | Esch-Belval, Brill, Lallange |
| Differdange | €4,200 | 4.8% | +3.5% YoY | Oberkorn, Fousbann, Lasauvage |
| Dudelange | €4,500 | 4.2% | +4.5% YoY | Itzig, Burange, Ginzebierg |
| Ettelbruck | €3,800 | 5.1% | +4.2% YoY | Warken, Grentzingen, Ettelbruck Centre |
Local banks in Luxembourg are well-versed in dealing with foreign buyers, providing a range of mortgage products tailored to non-residents. Generally, banks require a minimum LTV ratio of 70%, meaning buyers must provide a 30% down payment. Interest rates are competitive, often starting around 1.5% to 2.5% for fixed-rate loans. Typical loan terms range from 20 to 30 years. To apply for a mortgage, foreign buyers need to provide comprehensive documentation, including a valid passport, proof of income, recent bank statements, and sometimes a credit report from their home country.
Start gathering your documentation 2-3 months before applying. Non-resident mortgage applications typically require notarized translations and apostille stamps for foreign documents, which can take several weeks to process.
Use our interactive mortgage calculator to estimate your monthly payments for a property in Luxembourg.
Financing Tip
Your down payment of 20% or more typically qualifies you for the best available rates.
Property developers in Luxembourg often offer financing options that make purchasing new developments more accessible. These typically involve staged payment plans, which start with a reservation fee, usually around 5% of the property's price. Subsequent payments are made in stages, tied to the completion of key construction milestones. This structure allows buyers to spread the cost over the development period, easing the financial burden. These plans can be particularly beneficial for those looking to manage cash flow efficiently while securing property in sought-after locations.
Always verify the developer's credentials, track record, and financial stability before committing. Request to see building permits, completion guarantees, and consider using escrow accounts for staged payments.