What is a keen Islamic mortgage? – it’s a common question. The newest short response is one what some telephone call an enthusiastic Islamic financial isn’t actually an interest rate whatsoever. Islamic a mortgage might look just like home financing in a few ways, but it is predicated on a completely more foundation. Islamic a mortgage is free out of riba (loosely interpreted because interest), and is also good halal (otherwise permissible) way for believe-aware Muslims and you will low-Muslims buying a property.

Islamic A home loan vs. a normal Financial

In the middle regarding a timeless mortgage loan ‘s the routine out-of lending and you may borrowing from the bank currency from the notice. Your house customer borrows currency to acquire a property, agreeing to spend they back during a period of day, which have extra interest.

This is simply not an acceptable company routine under Islamic beliefs.