Regulatory Alerts2020-12-08
Technical FAQ on Regulation CSSF No 20-08 on Borrower-Based Measures for Residential Real Estate Credit
The CSSF issued this technical FAQ to clarify the implementation of Regulation No 20-08, which imposes Loan-to-Value limits on mortgage loans for residential real estate in Luxembourg. The document details the calculation of own funds, including the temporary acceptance of state guarantees until March 2027, and specifies how collateral values, bridge loans, and renovation costs are treated. It further defines the applicable LTV limits for first-time buyers versus non-first-time buyers, outlines the portfolio allowance mechanism, and establishes the criteria for identifying first-time buyers and the scope of covered transactions.
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