Question
Is Servus Halal, which has started launching in Alberta, a Murabaha or Musharakah product? What are the terms?
Answer
Alhamdulillah, wassalatu wassalamu ala rasulillah, wa ala alihi wa sahbihi ajmain.
What Servus Halal Is
- Servus Halal Mortgage is a Murabaha (cost-plus-profit) structure, not Musharakah. It is certified by the Canadian Islamic Finance Board (CIFB). (servushalal.ca)
- Under the Murabaha, Servus Halal buys the home from the seller, then resells it to you at the original cost plus an agreed profit, with repayment over 25 years.
Key Terms of Servus Halal Mortgage Product
Compliance with AAOIFI Standards
Servus Halal has been structured in compliance with the standards of AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions).
- AAOIFI is an international standard-setting body, established in 1991 and based in Bahrain, that develops and issues Shariah standards for Islamic finance.
- These standards cover contracts such as Murabaha, Musharakah, Ijarah, and others, ensuring that financial products are free from riba (interest), gharar (excessive uncertainty), and maysir (gambling).
- By following AAOIFI standards, Servus Halal aligns itself with the globally recognized benchmarks that most Islamic banks and financial institutions adopt, giving additional credibility to its Shariah compliance.
Final Ruling
Yes — Servus Halal is a Murabaha-based product, not Musharakah. Its terms include a 25-year repayment structure, minimum 20% down payment, and halal certification by CIFB. It has been reviewed and structured according to AAOIFI international Shariah standards, which are widely recognized as the authoritative framework for Islamic financial transactions.
And Allah knows best.