Continuation of the temporary LTV adjustment for buy-to-let consumer residential real estate loans
CSSF Regulation No. 24-10 of 30 December 2024 extends a temporary adjustment to CSSF Regulation N° 20-08 which regulates maximum LTV ratios applicable to residential real estate loans for immovable property located on the Luxembourg territory. As a result of CSSF Regulation No. 24-10, lenders may continue to apply until 30 June 2025 LTV ratios of up to 95% for buy-to-let residential real estate loans granted for immovable property located on the Luxembourg territory as opposed to a maximum LTV ratio of 80%. The up-to-95% exemption can only be applied to 10% of a lender's annual production of such buy-to-let residential real estate loans. The continuation of the 95% LTV exemption was prompted by cyclical trends in the Luxembourg real estate market.
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