[Ijarah conversion product]

Fatawa Question

As-Salamu `Alaykum. Please, read below the Ijara Canada’s home mortgage module and advice if it is permissible. Ijara’s model is Ijarah Wa Iqtina, the property is owned by a single asset trust, you are the beneficiary of the Trust and your name shows up on title. Ijara’s investors (traditional banks, insurance companies and some private investment) put their money into each individual investment. Ijarah does not borrow money and then loan it out. Your investment is protected by your ownership in the trust. As a technical point your ownership in the trust is not really ownership as there are no owners in a trust, what you have is “beneficial rights to ownership”

Fatwa

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Publication Date

2012-04-30

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• ٌLeasing
• Ownership

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-733447

• APA
• MLA
• AMA