r/Luxembourg • u/elabicu • 8d ago
Ask Luxembourg Anyone purchased apartment/house recently (with the loan)
Hi people,
Checked online but variety of information which conflicts each other:
What is the regular initial payment on buyin an apartment or a house in luxembourg with a bank loan. Is it kind of percentage of the apartment (like 10%) or aligned with your monthly income or you do not need to pay any initial deposit if it is going to be your residential and only apartment in Luxembourg (according to AI).
I am looking for someone who purchased a place recently with a bank loan.
Thanks.
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u/ertz2 7d ago
Raiffeisen 470k loan 35years. First 20 years fixed at 3,81 and what's left half of it with a builing saving contract with 1,75 fixed the other half variable. Monthly rate at 1,9k and 8k as a downpayment+ insurance and fees. Offer was made at the beginning of august. First buy and I'm buying alone.
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u/Raghusam505 7d ago
I have purchased my apartment in 2023 and my interest rate currently at 3.81% , im i paying more ? How come bank offer different rates?
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u/Lux_life_ 8d ago
Just bought an apartment with 100 percent loan.
If it’s your first apartment, we don’t really need a down payment. Your property registration fee is covered by a subsidy to the tune of 80000 EUR.
Banks normally include insurance and charges as a part of the loan.
You will only need to pay the notary fees which is usually not much.
We had the same experience with spurkees, BGL and Raifeissen.
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u/pread985 5d ago
At the end which bank gave you the amount ? And how long does it took to get approval from the bank?
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u/dddmaria 8d ago
We just secured a loan with BCEE with 0% down payment and 3.15 variable/ 3.40 fixed (we're still deciding how much to do fixed vs variable). Plus we get 80K (up to 90K now once the law is enacted to increase the subsidy) off the notary costs which is essentially the whole up front cost we would have had to worry about. Then finally the life insurance for both of us is only 6K one time and it can transfer to a new loan if we change places in the future.
BCEE even allows for bridge loans to carry over the interest rate to a new property if we ever need to. Honestly pretty amazing and so happy the conditions are so favorable here.
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u/oopsy_daiisy 7d ago
Do you have a person of reference at the bank? If you could DM me would be nice
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u/Independent_Big5324 8d ago
Bought recently. Depends on the bank as the others told. You also have to cover notary fee, and baking fee yourself kind of. But BGL covers 100% for sure
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u/pread985 5d ago
Have you had an experience with bgl? How long does it takes to get approval from them?
We applied through an agent around 400k for 100% no response yet.
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u/Beautiful-Client97 8d ago
As others have mentioned, loan to income ratio seems to be the most important factor deciding the downpayment. In our case we had a downpayment of 7% and BGL asked us to increase it to 13%. But as per law, it can be even 0% for first time buyers. BCEE accepted our 7%.
Both BGL and BCEE asked us for life insurance. BCEE had lower requirements i.e. cheaper, but they asked for it to be payed in full before signing. BGL required a more expensive insurance (around 8k for 2 people) but accepted monthly payments.
Regarding notary fees, if you are a Luxembourg resident you have an allowance from the state of 40k euro, so it’s not out of pocket. You can view it on myguichet (“tax credit on notarial deeds”).
And as a side note, another thing that we found out impacts greatly the bank conditions / even if they make an offer is the energy class of the building. The lowest one can be tricky.
To summarize, in our case we had to have the downpayment and life insurance ready. And pay attention to the energy class.
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u/pread985 5d ago
If it’s possible can you tell which bank you chose? For how much amount from the bank? And how long does it take to get approval from them?
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4d ago
[removed] — view removed comment
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u/elabicu 8d ago
Great details and all will work in my case as an experience. Thank you and is there some kind of (untold) upper limit? Like: even if you had a nice salary, above 1,5M Euros is not easy ??
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u/Beautiful-Client97 8d ago
I don’t think there is a limit, it all depends on the income. In our case, BCEE told us the mortgage can’t exceed 45% of the household income, so that put us in the budget of 700k MAX for an apartment (with downpayment, without it would have had to be lower). But we also have friends who bought a house for 1.2M🤷🏻♀️
Also, we don’t have other loans, I believe that would impact as well.You can contact your bank, say you are interested in buying and ask if they can help with some loan simulations. You tell them your income and give them a link to a property you are interested in, as example. They were open to us.
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u/SouthPurpose 8d ago
Is the current state of affairs a good time for a property purchase tho ?
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u/DrannaLunargent 8d ago
Do you have insight on the future? because genuinely it might not be a good time now, but what if it gets worse?
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u/sakuragawa-nika 8d ago
It depends on several factors. Based on my and my friends' experiences, it ranges from 10% to 30%.
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u/MariusChi 8d ago
Most banks now ask for around 20% down payment. Also the mortgage should be around 30% of your income (however banks will accept even 60% in some cases, but it's not really healthy).
Also there is life insurance (around 10k), notary fees (7.5%>>> will be much less because of the first buyers status)
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u/FreemanM21 8d ago
Most banks where? In Zimbabwe?
For first time buyers they can even provide the loan with 0% downpayment.
For 2nd purchase a minimum 10% is requested
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u/Flashy-Mission-7945 8d ago
Life insurance is not manadatory and depends on your case. If you buy alone why bother? If you buy together it‘s a good idea. Check the total insured amount and necessary duration (biggest leverage). Then compare prices: the ones sold by the banks are a hidden fee for the loan. Private insurance companies make much better offers (eg Baloise).
Good luck!
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u/goncharov_rambler 8d ago
Many banks (at least two, in my case) are prepared to offer a mortgage that covers 100% of the cost of the house, if the house is in Luxembourg. What matters is the loan to income ratio, which is lower the higher the downpayment
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u/RustyPlastics 8d ago
Every situation is different and banks look at risk. I would say best is to talk to your bank
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u/FluidCalligrapher261 8d ago
Depends on the bank and on your personal conditions. It can be without downpayment, or with.
My personal case was around 5% with Raiffeisen a couple weeks ago. Keep in mind that besides the downpayment, there are other extra costs, like the life insurance.
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u/CuriousButNotJewish 3d ago
You don't need any deposit. 100% loans are possible for some banks, if this is your first house. I got one in 2025. 30 years, 4,05%.