How much house can I afford?

About this model and its assumptions

This model has been reviewed on the 12th February 2024.


Our home affordability tool automatically calculates the house you could afford considering your marital status, your income, your monthly charges as well as your savings. You should discount 20% of your rental income in your Monthly income.


Our model is based on the assumption that banks accept a total debt charge to net income ratio of 45%. Also banks do not generally grant mortgages if your available net monthly income is below €1 700 when single and €2 300 when married.

In addition banks today usually require a 20% Down Payment on the Home Price (i.e. excluding the Home Acquisition Costs and the Mortgage Closing Costs). This amount may however be lowered depending on your specific situation and other guarantees/collaterals you may provide.

Home Acquisition Costs and Mortgage Closing Costs include Stamp Duty, Notary Fees, Other Notary Charges and a one-off Banking Charge.

The State of Luxembourg fixes Stamp Duty and Notary Fees that depend upon your personal situation, the house price and the mortgage amount. For New (off-plan) properties, we consider in our calculation that the land value corresponds to 35% of the total property price. Please refer to the Nexvia Tax smart card if you wish to view the applicable Stamp Duty rates.

Other Notary Charges include the VAT payable on the Notary Fees plus other expenses and disbursements your notary will charge for executing the transfer of ownership (+/- €1 000) and the mortgage registering (+/- €500). These expenses and disbursements charged by the notary may slightly vary depending on the specific situation of your acquisition. Our estimate should however be very close to the actual price you will pay.

Banking Charge is the one-off fee that banks usually charge when taking out a mortgage. We estimate this fee to €500 but this may change from one bank to another.

While you will often need to contract a Mortgage Insurance when financing your home through a mortgage, we have not considered a Single Premium Payment as part of the Mortgage Closing Costs since we believe most acquirers will opt for an Annual Premium Payment that are included in the Monthly Charge of our Acquisition Costs and Monthly Charge Calculator.