Macroprudential measures – Luxembourg

The Luxembourg macroprudential authority decided in December 2020 to introduce LTV limits for new mortgage loans on residential real estate located in Luxembourg with effect from the beginning of 2021. The LTV limits are set differently for different categories of borrowers.

a) LTV limit of 100% for first-time buyers acquiring their primary residence;

b) LTV limit of 90% for other buyers i.e., non first-time buyers acquiring their primary residence (with a 15% volume exemption on loans with an LTV above 90% but below the maximum LTV of 100%);

c) LTV limit of 80% for other mortgage loans (including the buy-to-let segment).

The Czech National Bank does not reciprocate this measure, as the exposure of domestic banks to mortgage loans on residential real estate located in Luxembourg is very low. At the same time, the Czech National Bank currently has no information that this situation might change. However, it will continuously assess the situation and stands ready to amend its decision if necessary.

Prague, 7 July 2021