The volume of mortgages granted by Luxembourg banks has recovered by a notable margin, after a slower-than-usual summer, according to data published by the Luxembourg Central Bank (BCL) on Friday.
Total new mortgage volumes were €718 million in September 2025, the second highest monthly figure recorded this year, behind June (€932 million). The figure was €452 million in September 2024 and €412 million in September 2023.
Interest rates on floating home loans were an average of 3.08% in September 2025, the second lowest rate reported this year, after August (2.99%).
Fixed rate interest was generally higher for home loans under ten years and broadly lower for home loans lasting more than ten years.
The average interest rate across all outstanding mortgages was 2.60%, the second lowest rate recorded this year, after July and August (2.59%). In comparison with previous Septembers, the average rate was 2.84% in 2024, 2.80% in 2023, 1.62% in 2022 and 1.59% in 2021.
Housing loan activity slumped in July and August, after spiking in the second quarter of the year due to homebuyers rushing to take advantage of lower property registration taxes, which ended in June.
