Just wanted to share our recent home financing experience, as this might be useful to others looking to buy property in Luxembourg.
We had a rather difficult time securing financing and ended up contacting every bank offering housing loans in Luxembourg.
We ultimately received multiple offers in Luxembourg, but I particularly wanted to give a shoutout to two foreign banks that were considerably more flexible than many of their Luxembourgish counterparts:
Sparkasse Trier (Germany): Absolutely fantastic experience. Extremely efficient, friendly and pragmatic. We had our first proper conversation with them and received a concrete financing offer the very same day. Honestly impressive compared to the weeks of back-and-forth with some Luxembourgish banks.
Belfius (Belgium): Also a very positive experience. They were genuinely interested in finding a solution and even told us they were willing to match any competing offer. Very approachable and flexible throughout.
On the other hand, a negative shoutout to Spuerkeess, which was easily our worst experience overall.
Despite having been clients for practically our entire lives, we encountered by far the most conservative approach, with an interest rate of around 5%, the highest we were quoted. They also seemed to ignore half of what we explained about our financial situation.
To make matters worse, we were initially told by our adviser that financing up to a certain amount would be possible, only for the bank to subsequently reverse course and reject our application. Extremely frustrating, especially given our long-standing relationship with them.
In the end, we went with a Luxembourg-based lender at an effective rate of approximately 4.2%, mainly because the overall process was simply easier to manage locally.
The main reason I’m posting this is that not many people are aware that banks in Germany and Belgium can finance properties located in Luxembourg. And judging by our experience, they’re absolutely worth contacting.
So if you’re struggling with the rather rigid lending criteria of some Luxembourgish banks, don’t necessarily give up. There are alternatives just across the border, and in our experience some of them were significantly more willing to look at the bigger picture rather than just tick boxes.
Hopefully this helps someone!