Islamic home finance

22 Aug 2019 Ref-No#: 2152

I am looking into the option of Islamic Home Finance in Canada.
Currently considering
1. Aya Financial
2. Zero Mortgage
3. IjaraCDC

Halal Islamic Sharia Financing | USA Canada

4. Manzil

Manzil Home

I have three questions:
1. In all the models and contracts followed by all companies all loss and gain is passed to the buyer. Without sharing loss/gains can the islamic finance be actually riba free?

2. Between Ijara, Musharakah and other models which is better in your opinion?

3. Is Islamic finance actually any different from conventional banking?


Wa’alaykum as Salam wa rahmatullahi wa barakatuhu,

  1. In order to comment, we need to see the exact wording of the contract. We suggest you rather discuss this with the Ulama in Canada.
  2. Muraabaha is generally the easiest. But Ijarah and Musharakah are also practical.
  3. Yes, conventional finance is based on interest. Allah has declared war on those who engage in interest deals. Islamic finance is based on profits, sharing of risks etc.

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