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Mortgage

A BIL loan enabling you to purchase a house or apartment, whether new or old, or to fund a new build. BIL will support you with tailored financing solutions.

BIL, your real estate partner

  • Would you like to finance the purchase of your primary residence or second home?
  • Making a rental investment?
  • Undertaking renovation work?

Since all real estate projects are significant undertakings, BIL can offer you advice and support through tailored financing solutions.

Simulate your mortgage

Carry out a mortgage simulation for an estimate of your monthly payments.
Online exclusive: loan application fees will be reduced by EUR 500 if you complete your application online!

Mortgage benefits

  • Reap the rewards of historically low interest rates
  • Enjoy tax benefits
  • Take advantage of various incentives granted by the Luxembourg government
  • Benefit from the advantages offered by Immoplus Green loans while cutting your energy consumption

Find out more about mortgages

  • What are the different loan options available?

    Fixed-rate loan

    By its very nature, the fixed-rate loan is unaffected by financial market fluctuations. As such, your loan is repaid in regular monthly amounts throughout its term. You therefore avoid any hidden surprises in the event of interest rate rises. In exchange for this security, the interest rate on this loan is generally slightly higher than that of the variable-rate loan.

    Variable-rate loan

    Interest rate fluctuations on the financial markets, whether upward or downward, affect your monthly repayments. Tip! To limit any upward fluctuations, opt for a capped-rate loan.

    Revisable-rate loan

    This option allows you to keep a fixed rate of interest over three, five or ten years. At the end of this period, the interest rate will either be variable, fixed or revisable once again.

  • What is the loan term for a mortgage?

    In theory, repayments can be spread over a period of up to 40 years. In practice, the loan term depends on your age and monthly budget.

  • What is the maximum monthly payment amount?

    The amount of monthly loan payments for a household should generally not exceed a third of its permanent income. BIL advises you so as to define the monthly payment amount according to your income and what you are able to pay.

  • How can I secure my mortgage?

    The usual guarantees are as follows:

    • Mortgage protection insurance. This allows you to protect your relatives. In the event of the borrower’s death, the insurer covers the repayment of the capital outstanding to the lending institution.
    • First or second ranking mortgage. The lending institution receives a security interest in respect of a building without the owner being dispossessed.
    • Wage assignment. The borrower may voluntarily pay off their monthly loan payments by assigning a proportion of their salary to their creditor.
    • Joint and several guarantee. A third party (or their heirs in the event of their death) undertakes to repay the debt in the event of the borrower’s default.
  • Which documents should I submit to apply for a loan?

    The following documents are required:

    • provisional sale agreement signed by each party
    • land registry plan
    • proof of own funds (if they are not held in BIL accounts)
    • details of existing loans
    • your most recent pay slips.
    • any other documents required to open your account and to approve the funding sought

    Specific documents in the case of a new-build or renovation:

    • planning permission
    • building plans
    • photos of the property (inside and outside) in the event of a renovation
    • plan, specifications or quotes in the case of a new-build.
  • What are the tax benefits?

    Debit interest on mortgages

    Debit interest for an owner-occupied home:

    • During the period when the property being built or renovated is not occupied: fully deductible
    • After this period: tax deduction capped according to the number of members of the owner’s household for tax purposes and the occupancy start date

    Debit interest for a property rented out: fully deductible

    Income-related expenses

    Charges and commissions related to the loan (e.g. loan registration and notary fees attached to opening a credit line): fully deductible provided that you do not occupy your home at the time of paying these costs. Notarial deed fees related to the purchase of the property: not deductible

    Mortgage protection insurance premiums

    • Regular premiums: tax allowance of EUR 672 per year and per person within the household for tax purposes
    • Single premium: the single premium is only deductible for the year in which the premium is paid, but it may be subject to an increased limit or higher increased limit that varies depending on your age, tax class and family situation.

    Single premium increased ceiling

    Up to 30 years old 31 – 49 years old (*) over 50 years old (**)
    Taxpayer EUR 6,000 EUR 480/year EUR 9,600
    Jointly taxed couples EUR 6,000 EUR 480/year EUR 9,600
    Allowance per dependent child EUR 1,200 EUR 96 / year 1,920 EUR

    (*) For taxpayers aged 31 and over, the increased limit for a single premium is 8% x number of years over 30 at the time the insurance policy is taken out.
    (**) For taxpayers aged 50 and over, the increased limit for a single premium is capped at EUR 9,600. BIL relationship managers will gladly provide information regarding possible tax deductions.

    Les Responsables de relation BIL sont à votre disposition pour vous informer sur les possibilités de déduction fiscale.

  • What government incentives are available?

    The Luxembourg government has a number of incentives for the construction, acquisition, renovation and conversion of housing by natural persons.

    Several forms of incentive are available:

    • direct capital aid
    • energy efficiency improvement subsidies
    • subsidies for rainwater harvesting
    • interest subsidies for loan repayment, etc.

    Find out more

    Learn more about government household incentives and how to obtain them.
    BIL relationship managers are also able to advise you.

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