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To grant a mortgage loan, banking establishments require guarantees (personal contribution, mortgage, etc.).
If you are unable to provide sufficient guarantees of your own to borrow the money needed for:
- purchasing; or
- improving your home ;
the Luxembourg government may, under certain conditions, help you to guarantee the loan.
The banking institution from which you take out the loan must have signed an agreement with the Luxembourg government in order for you to benefit from this guarantee.
The State guarantee covers the portion of the loan that exceeds 60 % of the total cost of the investment, but cannot exceed 30 % of the total loan.
The maximum amount of the State guarantee may not exceed EUR 269,807.20, which corresponds to the average annual value of the building price index in 2022 (index at 1037.72).
Who is concerned
Anyone over 18 who wants to take out a home loan in order to:
- transform; or
a dwelling that is located in Luxembourg and serves as the main and permanent residence for the borrower and their spouse or registered partner, as well as for their ascendants and descendants and/or those of their spouse or registered partner living in the same household.
If you wish to benefit from the State guarantee, you must:
- have a savings account that is exclusively reserved for the future purchase of a dwelling with a banking institution and have made deposits of at least EUR 1,000 a year over a period of at least 3 years;
- ascertain that your annual net income does not exceed a maximum threshold:
- if you are a single applicant: EUR 9,400 at index 100 (EUR 81,936.04 at index 871.66 for 2022); or
- if you are multiple applicants: EUR 11,200 at index 100 (EUR 97,625.92 at index 871.66 for 2022);
- ensure that this dwelling is your sole property in Luxembourg and abroad;
- take out a loan with a lending rate that does not exceed the 3 % ceiling;
- obtain a loan from your banking institution that covers at least 60 % of the cost for the purchase, construction, improvement, transformation or renovation of your real estate project. The cost of the project means:
- the cost of the land and construction work for the dwelling in the case of a new construction or a sale of property under construction (vente en état futur d'achèvement);
- the cost of acquisition and any improvement or transformation work in the case of the purchase of a previously occupied property;
- be the sole owner of the property for which the aid is requested.
To be eligible for the State guarantee, the loan must be guaranteed by a mortgage on the property for which the loan has been granted.
How to proceed
Submitting the application
The application for a State guarantee is submitted by your accredited banking institution which grants the loan.
The application form must be signed by both you and the banking institution.
The following items must be submitted with the application:
- a copy of your identity document;
- a declaration concerning the composition of your household, duly dated and signed by you;
- the history of the transactions on the savings account over the previous 3 years (or copies of bank statements);
- a copy of the provisional sale and purchase agreement in the case of purchase of property, or a copy of the preliminary contract (contrat préliminaire) if you are building a new property, or any other document proving that you are the full owner of the property;
- a sworn statement to the effect that you own no other property in Luxembourg or abroad;
- your salary certificate (and that of your spouse if there are several applicants) ;
- a financing plan;
- the general terms and conditions of the loan;
- for foreign applicants: a document proving your right to stay for more than 3 months.
As the beneficiary of the loan, you are obliged to inform the Single point of contact for housing assistance as soon as possible of any change in your situation.
The State guarantee is valid for the entire term of the loan and covers repayment of the principal, interest and ancillary costs of the loan.
Forms / Online services
Who to contact
Ministry of HousingSingle point of contact for housing assistance11, rue de Hollerich
Phone : (+352) 8002 10 10Fax : (+352) 458 844Reception: Reception: Thursdays by appointment only; every other weekday from 8.00 to 12.00 and 13.30 to 16.00 (no appointment necessary) / Telephone: Mon.-Fri. from 8.00 to 16.00