Halal - Mortgage

Halal Mortgage versus the conventional variety

Many people who are interested in a Halal mortgage only need some information to make an informed decision. There are some things that are the same between this type and the more traditional variety, but we think the differences give the advantage to the Islamic version.

Here’s why.


When you buy a house with a conventional Western mortgage, the bank lends you the money. They also charge a certain percentage of interest on the loan. Depending on the amortization rate and other market factors, the amount that you actually pay towards what you owe fluctuates.

A Sharia compliant Halal mortgage takes a different approach. Because the Islamic faith forbids riba, it’s not allowed to lend money and charge interest. The ijara contracts that we design uphold all the legal responsibilities of a more conventional mortgage but forgo these interest payments.

One of the most important factors here is the Islamic product retains the deductibility that more conventional Western-style mortgages have.

Sharia Compliance

Muslims looking to buy their own property want to be sure they don’t step outside the boundaries of their faith. Islam relies heavily on social justice as one of its cornerstones. That’s why Islamic mortgages are vetted by scholars who understand the requirements of our religion.

For the most part, conventional Western mortgages don’t have this social and spiritual aspect. Their main goal is to make money.

Comparing the different styles of mortgages is quite often a matter of deciding which one best suits your lifestyle and philosophy. It’s important to remember that many non-Muslims look for sharia compliant products when they are buying a mortgage.

Interest/Riba-free Financing

Creating interest/riba-free financing is one of the foundations of our business. Please keep in mind that we are not a bank but rather a structuring and consulting company. Reach us at 1-87-786-IJARA (877-864-5272) or through the contact form on our website. We can answer any and all of your halal mortgage questions.