Home savings

How home savings (Bausparen) works

1. You save a monthly amount that suits your budget, over several years.
2. You earn the right to a loan: once the conditions of the contract are met, Wüstenrot grants you a loan whose rate is fixed from the day you sign.
3. You carry out your project with your savings and this loan, in addition to or instead of a standard bank loan.

The big advantage is predictability: you know your borrowing rate years in advance, whatever happens to market rates.

A tax advantage for the whole family

In Luxembourg, payments into a home savings contract are tax-deductible, up to €1,344 per year per household member if the subscriber is aged 18 to 40, and €672 above that age. Note: cancelling the contract within 10 years means losing, with some exceptions, the deduction already obtained. For a couple with two children, that is a significant deduction every year.

For which projects?

• BuyingA house or an apartment to live in.
• BuildingYour home, including the purchase of the land.
• RenovatingBuilding work, energy-efficiency upgrades, fittings.
• RepayingAn existing mortgage, depending on the terms of the contract.

Think of the children too

Opening a contract in a child's name gives them a head start for their future first home, while you still benefit from the household's tax deduction. It's a birth or birthday gift that makes sense.

How we help

We work out with you how much to save, for how long and what loan you can get, based on your project and your budget. We also explain how to combine home savings (Bausparen) with your bank loan and your mortgage protection insurance (solde restant dû).

Frequently asked questions

How much do I need to save each month?

There's no single amount. It depends on the total you're aiming for and the date of your project. We do the calculation with you and can adjust it if your situation changes.

What happens if I don't go ahead with a property project?

Your savings remain yours, but the tax advantage is tied to using them for housing. The exact conditions depend on the contract: we explain them to you before you sign.

I'm a cross-border worker: can I benefit?

The tax deduction depends on your situation in Luxembourg. We check with you whether you can benefit from it.