Interest Subsidy
What is the Interest Subsidy?
It is a help for people who have taken out a mortgage to buy a home. Its goal is to reduce your monthly expenses.
What is its rate?
Between 0,575 % and 2,45 %
The rate of the interest subsidy is calculated on the basis of your income and your family situation. Its amount is fixed according to the loans contracted, which are taken into consideration up to a maximum of 175,000 €.
What are the granting conditions ?
YOU HAVE TO...
• have a mortgage loan with a financial institution.
• not to be the owner, the co-owner or the usufructuary of another dwelling in Luxembourg or abroad.
• not to have an income higher than the limit provided by the law.
• do not rent your accommodation (except partially to a student enrolled in a post-secondary cycle in Luxembourg).
THE PROPERTY HAS TO...
• to be located in the Grand Duchy of Luxembourg.
• serve as your main and permanent home for at least 10 years.
• respect the following usable surface area limits *:
House : 65 m2 – 140 m2
Apartment : 45 m2 – 120 m2
(* Cellars, garages and lofts that are not fitted out as living quarters are not taken into consideration, the surface area can be increased by 20 m2 for each dependent child, starting from the third, and for any ascendant at the 1st degree and any disabled person living in your dwelling, from the 5th person who lives there and provided that this person is not a property owner.These limits are applicable to any housing built after 10/09/1944 .)
What are the calculation criteria?
YOUR FAMILY SITUATION
• Existing situation at the time of the allocation of the interest subsidy.
Your application will be re-examined every 2 years. You must inform the relevant administration immediately of any change in your family situation, your income and the terms of your loan (eg. interest rate).
YOUR INCOME
• Taxable income corresponding to the last income known at the time of the allocation of the interest subsidy.
• Taxable income + all other income, even if not subject to tax, that you have and any other person living in the property.
• Are not taken into consideration: family benefits, state financial assistance for higher education, orphan's pensions, severely disabled benefits, long-term care benefits and the income of your descendants and your parents or allies up to and including 2nd degree.
WHAT ARE THE STEPS TO FOLLOW?
Click on the link below for more information and to access the forms.
More InformationInterest rate subsidy
What are Interest rate subsidies?
It is a help for people with one or more dependent children who have taken out a mortgage to buy a home. Its goal is to reduce your monthly expenses.
What is its rate?
0,50 % per dependent child
Its amount is fixed according to the loans contracted, which are taken into consideration up to a maximum of 175,000 €. The aid can be combined with the interest subsidy without being able to exceed the loan rate.
What are the granting conditions ?
YOU HAVE TO...
• not to be the owner, the co-owner or the usufructuary of another dwelling in Luxembourg or abroad.
• have at least one dependent child.
• have a mortgage loan with a financial institution.
• habiter le logement pour lequel la bonification est payée.
• do not rent your accommodation (except partially to a student enrolled in a post-secondary cycle in Luxembourg).
• not to have a taxable annual income higher than the limit provided by the law (95.932 € as of 1.1.2018).
VOTRE LOGEMENT DOIT…
• to be located in the Grand Duchy of Luxembourg.
What are the calculation criteria?
YOUR FAMILY SITUATION
• Existing situation on the date of the interest rate subsidy allocation.
YOUR INCOME
• Taxable income corresponding to the last known income at the time of the allocation of the interest rate subsidy.
Your application will be re-examined every 2 years. You must inform the relevant administration immediately of any change in your family situation, your income and the terms of your loan (eg. interest rate).
When is the interest subsidy granted?
• From the date of the first request. A 6-month period preceding the application may be taken into consideration if the conditions for granting are met during this period.
• Can only be granted once to the same beneficiary. A 2nd one can only be granted if the first one has been fully refunded.
WHAT ARE THE STEPS TO FOLLOW?
Click on the link below for more information and to access the forms.
More InformationThe Information in pictures!
In addition to the links to the site logement.lu, here is a video summary of the information (FR)
Be doubly sure!
The information in this article comes from the state's official website on housing. Please always check the accuracy of the information as of the date of your reading by following the link:
Link towards LOGEMENT.LU
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