When building or buying a house, the question of a mortgage will come up sooner rather than later. Some people swear by a variable rate loan, whereas others prefer to keep control of things with a fixed rate option.

Central Bank of Luxembourg took stock of the differences between the two types of mortgage rates towards the end of 2016.

In December 2016:

• variable interest rates - 1.65%
• fixed interest rates - 1.67%

The exceptional drop in credit interest rates have been beneficial to everybody. On the one hand, it has allowed Luxembourg residents to increase their budget when it comes to newly created contracts, and on the other hand it has allowed households with the variable rate option to lighten the burden for a few months.

Since the beginning of 2017, it seems that interest rates are moving slowly upwards again, even if at the moment the rates are still nothing like what they were in the past! So don't wait too long, there is still time to get started.


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