As the ECB maintains its policy of raising interest rates, credit is becoming scarce and expensive in Luxembourg.

According to the latest figures from the Banque centrale du Luxembourg (BCL), the variable interest rate on home loans granted to households is now 3.53%. Over one year, the rate has risen by 221 basis points, while the volume of new contracts has fallen by €27m. The fixed interest rate reached 3.77%. Year-on-year, the rate rose by 226 basis points while the amount of loans granted fell by €212m.

Home loans with an initial rate fixation of over 10 years rose by 17 basis points to 3.77% in February 2023. Year-on-year, the rate rose by 219 basis points, while the amount of loans granted fell by €146m.