A simpler way to make your existing mortgage sharia complaint.
Perfect for interest mortgage holders that are already happy with their rates and terms of their current interest mortgage, but just want to convert it to be sharia complaint.
You don’t have to go through a tedious process of refinancing; no credit check, appraisal, or income documentation needed. This is not a refinance but a restructuring of your transaction. The whole process only takes 10-14 business days and in most cases we can get the conversion completed before your next payment is due.
The best part, other than freeing yourself from Riba, it costs significantly less than doing a refinance.
What exactly happens in a conversion?
A conversion essentially changes the nature of the transaction from a rent on money transaction (Riba) to a rent on property (Ijara) transaction. There is a loophole in all mortgage transactions that we take advantage of, as long as we do not change the economics of the transaction, we can change the nature of how profit is earned. Once you have gained 100% equity then the property can be transferred to your name, or you could also opt to keep it in the trust. But even if the property is still in the trust, you still have the same rights as a regular homeowner, since you are the grantor and beneficiary of the trust. So you can sell, rent, renovate etc., as you please.
Economically, you will be paying the same plus a low monthly admin fee, but the structure of the transaction will be different. The property is owned by an independent trust and leased to you. Ijara will manage the collection and processing of payment as rent from you to the trust. Since you are the grantor of the trust, you would have the full authority if you want to sell / rent / renovate/ etc. the house at anytime. The bank will remain the investor, but you will no longer be paying Riba. After the conversion your transaction will be restructured into a rent to own transaction between you and the trust. The bank will be the investor in the transaction. The bank will be investing into your property and they will be gaining their profit through the rent (trade), they will earn their profit in a halal way and not as a rent on money (Riba).
To start your conversion simply contact our Toll Free number or email application@ijaraloans.com
Fatwa Available for Review Here.
Documents Needed for Conversion
Download the Conversion Data Form for all US States here (USA residents)
Download the Conversion Data Form for Canadian Provinces here (Canada residents)