How to optimize your credit for the purchase of a new apartment in Luxembourg?

After signing your reservation for the purchase of a new apartment in the new Brooklyn district or elsewhere, you need to take steps to obtain a bank loan. 

To facilitate this process, it can be useful and advantageous to call on un real estate loan broker. This has the advantage of greater leverage with banks. Credihomefor example, has signed agreements with 7 Luxembourg banks.

Whether you use a broker or not, we strongly advise you to consult several banks and put them in competition with each other. 

Mélissa Rizzo, Head of Brokers at Credihome, gives you her advice on video so that you have all the information you need to negotiate. 

3 tips to optimize your financing application for your property purchase

1. Pay as little interest as possible during the construction phase. To do this, look for a bank that offers a progressive interest drawdown. This means that, initially, you will only pay interest on the progress of the work, not on the entire loan. You can even negotiate a capitalization of interest, so that you pay no interest until you have the keys to your new apartment.

2. Benefit from a more competitive rate by opting for rate structuring. Today, it's possible to obtain a 5-year revisable fixed rate at 3.5% versus 5% for a variable rate. In this way, you secure your loan while still being able to seize any opportunity to lower rates.

3. Stretch the term of your loan as far as possible. Banks usually offer financing terms of 20 or even 25 years. In some cases, Credithome is able to obtain financing for 30 years or more.

Contact Credihome to find out more. 

The new apartments in Bonnevoie's new Brooklyn district tick all the boxes!

Whether you're looking to buy an apartment in Luxembourg as your primary residence, or to invest by renting it out, Brooklyn's residences meet every criteria.

  1. They are ideally located close to the station, less than 15 minutes' walk from all amenities.
  2. These are luxury 1, 2 or 3-bedroom apartments with balcony, terrace or garden.
  3. Eaglestone guarantees non-indexed fixed price
  4. The construction is underway and the flats will be delivered in September 2025.  
  5. BGL BNP Paribas is the bank responsible for financial guarantee until completion of the work.

What's more, as our partner experts explain in the other articles in this series, theew government measures are making 2024 a particularly attractive year for property purchases.  New apartments in Brooklyn allow you to benefit from all available tax breaks this year

Which means:

  • If you buy a new apartment as your primary residenceyou benefit from :
  1. Bëllegen Akt tax credit of €40,000 per person.
  2. Debit interest deductible up to €4,000 per person in the household.
  3. From the super-reduced VAT rate to 3%.

Read more in the article : The  3 New Tax Measures to Help You Buy Your Principal Residence in Luxembourg.

  • If you buy a new apartment as a rental investmentyou benefit from :
  1. The new "Bëllenger Akt" investor tax credit, which reduces registration fees by €20,000 per individual.
  2. Accelerated depreciation at 6% over 6 years.
  3. A reduction in the capital gains tax rate to ¼ of the overall rate if you sell another property to make this purchase. 

Read more in the article :  Luxembourg rental investments will be particularly attractive in 2024 !

Please note! The Luxembourg government's support is only available for a limited time! To take advantage of them, you need to apply now.

Gisèle Lippolis, Residential Sales Manager at Eaglestone Luxembourg, explains the purchasing process in the article with video : 2024, the right year to buy property in Luxembourg.