Representative interest rates on new contracts[1] – loans and deposits – concluded with households 

The variable[2] interest rate on mortgage loans granted to households has increased by 5 basis points on a monthly basis to reach 1.41% in September 2022 compared to 1.36% in August 2022 and the volume of these newly granted loans has increased by 99 million euros to reach 385 million euros in September compared to 286 million in August. On a yearly basis, the interest rate has increased by 12 basis points whereas the volume of newly granted loans has increased by 124 million euros.

The fixed[3] interest rate on mortgage loans granted to households increased by 4 basis points on a monthly basis between August and September to reach 2.85% in September 2022 while the volume of these newly granted loans has increased by 61 million euros between the two months to reach 279 million euros. On a yearly basis, this interest rate increased by 154 basis points whereas the volume of newly granted loans has decreased by 174 million euros. On longer maturities, real estate loans with an initial rate fixation period over 10 year increased by 1 basis point to reach 2.86% in September 2022. The monthly volume of these newly granted loans increased by 46 million on a monthly basis to reach 226 million euros in September 2022. On a yearly basis, this rate increased by 149 basis points while the amount of newly granted loans shrank by 110 million euros. It is important to mention that this fixed rate includes all initial fixation periods above 10 years and is computed based on a sample of banks. The indicated rate is an average rate weighted on the volumes of granted loans. Furthermore, fixed rates with initial fixation periods on loans with very long maturities, like e.g. 30 years, can be significantly higher than this average rate mentioned above. 

The interest rate on consumer loans that have an initial fixation period above 1 year and below or equal to 5 years has increased by 1 basis point on a monthly basis between August and September to reach 3.46% in September 2022. The volume of newly granted loans has increased by 2 million between August and September to reach 26 million euros in September. On a yearly basis, the interest rate has increased by 89 basis points whereas the volume of new lending has decreased by 1 million euros. 

The interest rate on households’ fixed-term deposits that have an initial maturity below or equal to 1 year has reached 73 basis points in September 2022 from 72 basis points in August 2022. On a yearly basis, this rate has increased by 22 basis points. 

The following graph provides a detailed overview of the evolution of interest rates over the past two years. 

Representative interest rates on new contracts1 – loans and deposits – concluded with NFCs 

The variable² interest rate on loans below or equal to 1 million euros granted to NFCs increased by 52 basis points in September 2022 at 2.06% compared to 1.54% in August and the volume has increased by 120 million euros to reach 620 million in September from 500 in August. On a yearly basis, this interest rate has increased by 73 basis points and the volume of newly granted loans has decreased by 222 million euros. 

The variable² interest rate on loans above 1 million euros granted to NFCs has increased by 53 basis points on a monthly basis at 1.8% during the last reference period compared to 1.27% in August. The volume of newly granted loans has increased by 1 772 million euros to reach 4 326 million euros in September compared to 2 554 in August. On a yearly basis, this interest rate has increased by 87 basis points and the volume of newly granted loans has increased by 654 million euros. 

The interest rate on fixed-term deposits of NFCs with an initial maturity below or equal to 1 year has increased by 56 basis points on a monthly basis between August and September to reach 0.75% in September 2022. On a yearly basis, this interest rate has increased by 84 basis points. 

The tables pertaining to interest rates applied to credit institutions can be consulted and/or downloaded on the BCL’s website on the following pages: 

http://www.bcl.lu/en/statistics/series_statistiques_luxembourg/03_Capital_markets/index.html

Weighting method

The interest rates applied to new contracts are weighted within the categories of instruments concerned by the amounts of individual contracts. This results from the compilation of national aggregates carried out by reporting credit institutions and by the BCL.

[1] New contracts refer to any new agreement concluded between the household or the non-financial corporation and the reporting agent. New contracts include all financial contracts which mention for the first time the interest rate pertaining to the deposit or credit and all renegotiations of existing deposits or credits.

[2] Variable interest rate or rate with an initial fixation period inferior or equal to 1 year.

[3] Fixed interest rate weighted by the amounts of contracts for all mortgage loans granted, whatever the initial rate fixation period (above 1 year). This series has been published by the BCL since February 2009 only for methodological reasons linked to the identification of reporting agents.