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All Islamic mortgages use a variety of
principles based on Sharia law, including Ijara, Musharaka and
Murabaha. All of these get around the problem of paying interest -
Sharia prohibits the payment of interest (Riba). The following shows a
selection of products which are available globally.
Amlak Finance
Dubai Amlak Home Financing Sharia-compliant home financing and equity release products. Discounts for those remortgaging from a traditional mortgage.
HSBC Amanah Malaysia, Saudi Arabia Amanah Home Financing (Malaysia) The lender requires a deposit of no less than 10%. Uses the Islamic principle of Bai-Bithamnan Ajil
(in other words, deferred payment sales) - you pay the deposit on a
property, HSBC buys it from you and you then buy it back in fixed
monthly instalments. If remortgaging with HSBC from a conventional
mortgage, Stamp Duty is waived. Manazel Home Ownership (Saudi Arabia) Allows
up to SAR 2,000,000 financing and there are joint applications for
spouses. Based on Sharia principles, you pay an advance lease on your
chosen property, the bank buys the property and you then buy in monthly
instalments with rent included. You own the property at the end of the leasing agreement. Meezan Bank Pakistan Easy Home Sharia
home finance scheme on a Diminishing Musharaka basis - joint ownership
of property. The bank buys the property you want, you pay back price of
the house in monthly instalments plus a rental payment. At the end of
the leasing period you take full ownership. A deposit is required of no
less than 15%. Flexible repayments are an option.
Tamweel Dubai A range of Sharia-compliant adjustable repayment mortgages over 15-25 years. Financing up to AED 5 million. Yusr Finance The
process starts with a lower profit rate (alternative to interest rate)
for three years (4.99-5.99%) which is then adjusted over time. Home Owner Based on Murabaha contract. Requires a deposit of no less than 20%. Flexi rent to own Based
on Ijara contract. Requires a deposit of no less than 20%. The bank
buys your house and you repay it in instalments over 25 years. A
flexible profit (interest) rate is available. |
