Muslims live in Canada has it now access to interest-free mortgages, which would enable them to buy homesreport said on Wednesday.
Islamic mortgages are necessary because interest charges are forbidden for Muslims.
“We can’t deal with Conventional banks even if the interest is very low, even if it’s 0.1 percent,” Abdullah Mohieldin told the Canadian Broadcasting Corporation (CBC).
Some companies saw an opportunity and are now offering halal or permitted mortgages, but it is not free money – There are costs involved built in loans.
“People who Interest of Islamic mortgages are still payable for comparison amount You would pay it if you took out a conventional mortgage. it’s a just that structure of “These mortgages are different,” said Walid Hegazy, an expert. in Islamic finance at the university of Toronto.
popularity option Compliant with Islamic faith and Canadian law is a lease-to-own structure, where you are the mortgage company also Owner of of the property. Another is a legal establishment framework Where fees are charged, rather than interest payments, without violating the principles of Islamic law.
Zuhair Naqvi Founded Iqriz, Toronto-area Islamic mortgage company. He sees euphoria demand. However, the costs higher From traditional Mortgages for many reasons. Ago market relatively newand find funds to lend out for He said that halal mortgages are difficult. Apart from that, the administrative costs higher Because demand Younger and Islam restricts foreclosures on The mortgage that gets worse financial Risks.
Naqvi said so adds up to an additional 4% on Top of what regular lenders like Royal Bank will charge.
Despite this, instead market relatively small, it is big. Statistics Canada reported 1.8 million Muslims live in Canada of 2021 and a little more From half Rent instead of owning. Beside that with lenders more Conscious of Halal mortgages, mean costs will do down in The future, Naqvi said.
