Interest allowance
State assistance with the payment of interest rates of about 0.75% per dependent child to reduce monthly charges on a mortgage taken out for the purposes of home construction, purchase, or improvement.
Conditions
1. to qualify you must have a mortgage from a financial institution for the purposes of constructing, purchasing or improving a home located in the Grand Duchy of Luxembourg, which will effectively constitute your household's principal and permanent residence
2. you must be neither owner nor usufructuary of another dwelling either in the Grand Duchy or abroad
Children
The children taken into consideration are those for whom you receive child benefit and who are members of your household.
Income
Unlike the interest subsidy, the interest allowance is not subject to any conditions concerning income or useful living space.
Interest allowance may be refused if
- let out all or part of the dwelling
- no longer reside in the dwelling for which the interest allowance is paid
- have fully repaid the loan taken out for the purposes stipulated
- have no dependent children
- are or become owner or usufructuary of another dwelling in the Grand Duchy or abroad
Calculation of an interest allowance
Each case is automatically reviewed every 2 years.
Procedure to obtain an interest allowance
- you can obtain an interest allowance application form from the "Service des Aides au Logement, Coin avenue Gaston Diderich / boulevard Grande-Duchesse Charlotte, L-1420 Luxembourg". You will receive a multipurpose form covering all State subsidies and benefits for individual private housing.
- please fill out the application form carefully and attach all required supporting documents
- the department concerned will inform you rapidly whether you are qualified for an interest allowance or other state benefits for private housing
Source : www.logement.lu, Date : 10.05.2011, internal translation