In either case, the sale of the house is valid, and the buyer may rest assured that s/he has done nothing wrong. How to get a cheap Islamic mortgage/halal mortgage and save money. Why is there so much skepticism in mortgages, Islamic mortgages? I’m paying the same amount. And if and when I sell my house, you know, the benefit of this is the original contract is formed around the basis that you’re buying the house to stay in it and you’re paying it off over thirty years. When interest rates rise, bond prices fall. But a lot of it sometimes is the states are very difficult to work with when it comes to these Islamic mortgage contracts, so that’s why. Because the Islamic faith forbids riba, it’s not allowed to lend money and charge interest. AMJAD QUADRI: That is a very good way to look at it, yes. The reason for that is because they were new, they had more overhead. MONEM SALAM: So, are you basically saying that if I wanted to start up a conventional mortgage-lending, I could easily just download a contract, take it to the state and start operating within a short amount of time? MONEM SALAM: Well that’s a good segue way, a little bit off the topic, but when is the right time to be able to look at… let’s suppose you have the credit history, you have the down payment, when is the right time to be able to start looking at Islamic mortgages and maybe closing on a house? Even so, a number of reputable Muslim scholars have written fatwas which allow, on the basis of legal necessity (darurah), the purchase of homes in the west through mortgages. 3 Oct 2019. September 1, 2015 11:28 pm. All material presented in this publication, unless specifically indicated otherwise, is under copyright to Saturna. I think what we have today will be able to explain that a little bit more. New York 10022 2) Ameen Housing Co operative In the first part of the question, the transaction of sale is compliant in every aspect with the teachings of the Shari`ah. It takes place between two compentent parties, there is an offer and its acceptance, the object of the sale (a home) is itself halal, and the purchase price is paid by halal means, or cash. As a result, Islamic mortgages tend to be taken out only by those Muslims who regard conventional mortgages as being religiously prohibited. We’re not gonna share in the profits because our original contract says that you’re just paying us off X amount, and so at the time of sale, you just buy us off as a partner and then you own it completely and you sell it for what you want. The ijara contracts that we design uphold all the legal responsibilities of a more conventional mortgage but forgo these interest payments. AMJAD QUADRI: Absolutely. (Al Manzil Islamic Finance) This mortgage has been approved through the Assiniboine Islamic Advisory Board. Investing involves risk, including the risk that you could lose money. Investing in foreign securities involves risks not typically associated directly with investing in US securities. However, the joint purchase and the contract of lease may be joined in one document whereby the financier agrees to lease his share, after joint purchase, to the client. AMJAD QUADRI: That is an awesome question. MONEM SALAM: Yeah, we have our regional manager for Saturna Capital, Amjad Quadri. MONEM SALAM: It’s a different model but like I said, a lot of times, when we talk about Islamic investing, it’s not only about the return, it’s about risk mitigation. If you are interested in applying for a loan today, get in touch with us. It does not make sense for us to pursue interest-based mortgage loans from conventional banks currently when we have halal home financing options available to us. 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