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Like many young professionals in Luxembourg, are you eager to become a homeowner as soon as possible? Start building up your own assets by investing in real estate, instead of paying high rents. But how do you get a mortgage without sacrificing your lifestyle?

BGL BNP Paribas offers solutions tailored to your needs. Smarthome and the progressive repayment home loan take into account changes in your financial position(1).

The progressive repayment home loan

Your monthly repayments will depend on your financial position. Benefits:

  • During the first few years of repayment, you’ll pay lower monthly instalments,
  • You can maintain your lifestyle at the start of your career,
  • Your income can be invested in other projects,
  • The loan is tailored to your personal situation,
  • The loan repayment plan is tailor-made to suit you.

How does a progressive repayment loan work?

For the first five years of the loan, you’ll pay a minimum of:

  • Interest on the loan,
  • A portion of the capital defined with your advisor.

After five years, repayments continue according to the terms of a traditional home loan.

In practice

Homme qui est en train de faire un investissement PCC

Hamilton is 25 years old. This young auditor recently joined an auditing firm in Luxembourg. Eager to start building up his assets, he wants to become a homeowner. However, his income at the beginning of his career is still limited. His financial position will certainly improve in the coming years. His BGL BNP Paribas advisor therefore suggested he apply for a progressive repayment home loan(1). This way, he now owns his home and can still travel and go out with his friends.

The SmartHome loan makes it easier to get a foot on the property ladder


  • You define a monthly repayment amount suited to your lifestyle and financial capacity,
  • You benefit from greater flexibility suited to your family, personal and professional development,
  • You receive dedicated support to help finance your first home in Luxembourg.

How does the SmartHome solution work?

SmartHome is a financing solution divided into two parts:

  • The first part comprises a traditional amortised home loan, which provides for the monthly repayment of the capital and interest,
  • The second part is a bullet loan, which can amount to a maximum of 25% of the total purchase amount. During a maximum 10-year period, you only pay the interest due on this amount.


You can take advantage of tax benefits during the term of the loan! Debit interest on your home loan is tax deductible(2).

In practice

Homme qui est en train de faire un investissement

Tom has just found a job as a consultant. He wants to buy a studio to live comfortably in Luxembourg, without sacrificing his current lifestyle. His BGL BNP Paribas advisor told him about Smarthome, ideal for a young person who has just started working. At 25% of the loan amount, he’ll only pay the interest amounts due. is monthly repayments will therefore be lower. Since he plans to buy a bigger home in a few years, the repayment of the initial loan will be secured by the sale of his studio. This option is therefore perfectly suited to his situation and to his changing needs and projects.

Frequently asked questions

  • icone faq question
    What rate can I borrow at as a young professional?

    By using a variable rate, you can take advantage of modular repayments during the progressive portion of the home loan.
    The rate offered may be defined with your BGL BNP Paribas advisor, depending on your current needs and opportunities.

  • icone faq question
    What is a bullet loan?

    A bullet loan is a loan under which only the interest is repaid during its term. The capital amount is not amortised and is repaid in a single instalment upon maturity. This way, your monthly repayments during the loan term are lower. Although the interest paid is higher than for a traditional loan, in Luxembourg it is tax deductible.

Documents à télécharger ()

(1) Offer subject to terms and conditions and approval of your application by the bank.
(2) Tax deductibility varies based on the personal situation of each client and is subject to change.