Menu
Under Islamic law, Riba (or interest) is prohibited as it’s an exploitative arrangement that keeps the poor as they’re stuck with ever-growing debts whilst the rich increase their wealth without creating any extra value.
Our investment, finance and mortgage products are based only on Shariah compliant underlying principles including Murabaha (cost plus sale), and Musharaka (partnership).
Contracts are fair, clear, and transparent. Both regulatory and Shariah compliance requirements have been reviewed by our legal and Shariah teams to ensure relevant compliance. Terms are laid up front in clear and simple language.
Three layers of Shariah governance. Including an internal Shariah compliance function, an active three member Shariah Supervisory Board, and an independent external Shariah auditor.
There is a misconception amongst the general public that Islamic finance is the same as conventional, simply because both specify the finance cost as a percentage. This is a huge misnomer because using a percentage is just a method of pricing. Hence, what is most important is not the use of the percentage, but rather what such a percentage represents.
A car dealer can buy a car for $1,000 and sell it for $1,200 making a profit of $200, which can be expressed as 20%. On the other hand, a person can lend someone a $1,000 dollars and demand that the borrower pays it back as $1,200, thus making a 20% interest.
The difference between the two scenarios from a Shariah point of view is that the 20% made from selling the car is a permissible profit (as it involves taking risk of ownership in the items being sold), while the 20% interest on a loan is the pure definition of prohibited Riba (where the lender did not put any work or take on any risk to earn such increase).
See the features and benefits of a Musharaka or Murabaha financing and determine which one is best for you!
Please take the time to go through our frequently asked questions below.
Our scholars from our Shariah Supervisory Board, have critically reviewed all the documents and processes pertaining to this product and they have issued a fatwa certifying that our Halal Homes products meet the strict Shariah standards.
As per Shariah requirements in respect to financing, Halal Homes Canada’s relationship with the customer is a relation of a seller to a buyer (respectively), and not a lender to a borrower as it is in conventional lending. It sounds semantic, but in fact, it is quite material. A lender lends money and is repaid with more money (i.e., interest which is prohibited from a Shariah point of view). While Halal Homes Canada finances the transaction through buy and sell activities, so that there is a profit on the transaction, and not interest (Riba).
The Halal Homes Canada Mortgage Products are Shariah compliant. Being Shariah compliant means that you, the customer, can rest assured that every aspect of our Mortgage products is adhering to strict Islamic guidelines to ensure a 100% interest-free, Halal product.
To offer Halal financing, we rely on the funds deposited in our Halal Homes Canada Mortgage Fund from individual and institutional clients, so we are limited to the amounts in that Fund. The more people invest in the Halal Homes Canada Mortgage Fund, the more money we will have to finance.