Your ijara mortgage and low interest ratesOctober 26, 2015 at 10:49 pm
As you’ve more than likely heard by now, these are great times to invest in real estate and an ijara mortgage. Interest rates are historically low and that means that, even though the trust deals with that aspect of your islamic finance, you stand a better chance of paying the loan off more quickly in these times. There are several great reasons why your ijara mortgage and low interest rates are great partners and here’s just a few for you to mull over.
- Low interest rates means generally that the economy is struggling and you should be able to get a home for less than in a more robust economy. You’d be hard pressed to find a ijara mortgage expert who doesn’t expect things to turn around and when they do , the house that you’ve bought will increase in value.
- Low interest rates mean that you’ll pay that ijara mortgage off quicker. Even though you don’t pay the actual interest part of the loan, the amount that the trust owes will be affected by the interest rates. The lower the rate, the less you need to pay back to the lending institution on your ijara mortgage.
Your ijara mortgage isnt affected directly the interest rates that are charged by western style institutions, but you should keep an eye on these numbers anyway.