QuestionIs Servus Halal, which has started launching in Alberta, a Murabaha or Musharakah product? What are the terms? AnswerAlhamdulillah, wassalatu wassalamu ala rasulillah, wa ala alihi wa sahbihi ajmain. What Servus Halal Is Key Terms of Servus Halal Mortgage Product Compliance with AAOIFI Standards Servus Halal has been structured in compliance with the standards of … Read more
Question: Can you explain what Halal financing through a Murabaha agreement is, and how it differs from conventional financing? Answer : Murabaha is one of the most straightforward contracts in the Islamic finance industry. Simply put, it is a cost-plus-profit sale. But it must meet several key conditions (cornerstones): 1. Ownership:The financial institution (in this … Read more
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