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The beneficiary of a home mortgage loan may be granted a savings subsidy under certain conditions.
The savings subsidy is a form of government aid in the form of a lump-sum capital payment, the amount of which corresponds to the subsidised interest and premiums on the applicant's savings or home savings account at the date of granting the mortgage loan , provided that at least 90 % of the holdings in those accounts are used to finance a home. The savings subsidy is capped at EUR 5,000 per beneficiary.
The savings subsidy can only be granted once to a given beneficiary.
The eTracking function for hardcopy (paper) forms is a feature of this process. This feature enables users to stay informed about the advancement of their applications by email and/or by SMS.
Who is concerned
Any borrower who is legally authorised to reside in Luxembourg, who is domiciled in Luxembourg and effectively resides there, and who is the beneficiary of a construction subsidy, a purchase subsidy or general home savings subsidy may, under certain conditions, apply for a savings subsidy.
Applicants wishing to receive a savings subsidy must:
be receiving a construction subsidy, a purchase subsidy or general home savings financial aid;
have regularly saved for at least 3 years in a savings account opened at a bank or savings establishment authorised in the European Union and the European Economic Area, with an initial capital contribution of EUR 100.00.
How to proceed
Applying for a savings subsidy
The application is made simultaneously with the construction or purchase subsidy using the individual housing aid application form, to which must be attached a statement of savings account activity for at least the last 3 years (or copies of bank statements for the last 3 years).
Each page of the form must be signed separately. Everything must be sent to the Housing aid service (Service des aides au logement).
A maximum amount of 10 % of the savings on the savings account can remain on this account and be subsequently used for any purposes whatsoever.
If, during the 10-year period following the date of the authentic instrument documenting the purchase of the home, or the beginning of initial occupancy in the case of a new construction, the beneficiary leases all or part of the home, entitlement to the subsidy will lapse with retroactive effect, and it will have to be returned.
However, the partial leasing of the home to a student enrolled in a post-secondary school located in the Grand-Duchy of Luxembourg is permitted.
Combination with other types of financial aid
The savings subsidy may be combined with other types of financial aid, namely:
- a construction subsidy (government financial aid for the building or purchase of a home for first-time occupancy);
- a purchase subsidy (financial state aid for the purchase of a dwelling that is already occupied);
- the interest subsidy;
- interest relief;
- a subsidy for for the improvement of older dwellings;
- financial aid for special home adaptations for the physically disabled;
- an additional subsidy for architect or consulting engineer fees;
- general home savings financial aid.
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