Canadian Islamic Finance Board mortgages

Halal mortgage versus conventional mortgage

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There is a difference between a halal Murabaha mortgage and a conventional mortgage, both in structure and underlying principles. 1. Fundamental Basis Conventional Mortgage: Involves a loan with interest (riba). The bank lends you money to buy a house, and you repay it with interest over time. Murabaha Mortgage: Based on Islamic finance principles that … Read more

Mortgages in islam

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 MORTGAGE & HOMEOWNERSHIP 15. Q: What is the general Islamic ruling on riba-based mortgages? A: The general ruling is that riba is haram. Taking a conventional mortgage involving interest is not permitted. 16. Q: Can someone take a riba-based mortgage due to housing difficulties? A: Only in extreme necessity (darurah)—such as when a person with many dependents cannot find … Read more