Home mortgage in western countries : home mortgage loan

السؤال

Assalam Alaikum I would like a few minutes of your busy time for this 'Halal' product on home loans. One Muslim financial institution offers home loans as Shari’ah-compliant. It is called Musharakah Mutanaqisah by them. What it does is fix a percentage as profit (equivalent to today’s 1,2, 3 and 5 year mortgage term loan) and amortized over 25 years). When I check their calculator, the split between what they call 'rent' and 'principal' is identical to the penny with a conventional mortgage calculator. The terms need to be renewed after the expiry of the 1, 2 3 or 5year term as the case may be just like a conventional mortgage. This institution apparently borrows money from a credit union and retails it as home loan but considers the lending as 'partnership'. Their product has been considered 'Halal' with Fatwa issued by many prominent Muslims in the Toronto community. I personally feel uncomfortable because the whole concept is exactly similar to conventional mortgage except that the interest portion has been named as 'rent' by them. I have not named the institution's name on purpose, but if you need more info, I can refer you to their website so that you may make an informed decision. Thank you brother Kahf for looking into my question.

جواب الفتوى

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تاريخ النشر

2007-06-11

التخصصات الرئيسية

العلوم الاقتصادية والمالية وإدارة الأعمال
الدراسات الإسلامية

نوع البيانات

فتاوى

لغة النص

الإنجليزية

رقم السجل

BIM-785686

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