Category Archives: Islamic Mortgage

Home Loans Why Should You Avoid Interests If You Are a Muslim?

As a Muslim living in an outside nation you ought to be mindful of the way that you shouldn’t either pay or get intrigues. This learning will come helpful when you are really anticipating take a home loan keeping in mind the end goal to buy or assemble another home for yourself.

What does the Quran say?

Quran, the heavenly book forbids you from multiplying or increasing your benefits by method for hobby. On the off chance that you shouldn’t take intrigues you shouldn’t pay them too. The demonstration of multiplying or intensifying riches with the assistance of premiums is seen as usury in the Islamic religion. You, then again, are not restricted to twofold your benefits by method for exchanging.

It is vital for you to take after either the Ijara or the Murabaha techniques for Islamic home financing while securing home loan. What are these Islamic home loans about? This post ideally will be of plentiful help in such manner.

Clarifying the Ijara Method of home Financing

According to the Ijara technique for Islamic home financing the bank will purchase a bit of property and give the same to you on lease. The lease-unnecessary to say will be for a drawn out stretch of time – reaching out for up to 20 or 25 years. Through every one of these years you will be paying lease rather than hobbies. The rent will fluctuate as indicated by the adjustments in the rate of hobby. You can purchase the best possible toward the end of the lease term in the event that you need to.

Clarifying the Murabaha Method of home Financing

You ought to additionally familiarize yourself with the Murabaha Islamic home loans. According to this specific strategy the bank will purchase the property for your sake and offer the same to you at an altered benefit. The property papers will be enrolled in your name once you pay the entire sum. Here is the manner by which it meets expectations. You can approach manage an account with every one of your necessities. The bank will alter an advance in the wake of assessing your FICO assessment and reimbursement limit. At that point you will need to discover a property inside of the credit sum settled (barring the mark-up rate in view of common assent). Once the customs are done you will get ownership of the house. Be that as it may, the papers might be exchanged to your name once you have the capacity to pay off the whole credit.

Find Out About Islamic Mortgage

Are you a Muslim looking forward to buy a house? If yes, then you should be aware of the fact that Quran does not allow a Muslim to either receive or pay interest. The Holy book equates the act of “doubling” and “redoubling” as usury. One is allowed to add to his wealth by trading, but not by earning interest. So, you possibly cannot take out a mortgage since mortgage loans are inextricably associated with rates of interest. However, you do not have to give up hopes of owning a house. How is that possible? How can you actually own a home without getting a mortgage? Read on to know more.

Ijara Loans


The Ijara loans and Murabaha method of lending are the two prominent parts of Islamic mortgage. Both these methods allow you to avail Islamic mortgage without you having to pay rates of interest. Let us find out about the Ijara loans first.

As per the Ijara method of loaning, the bank buys a property and gives it to you on lease for a period as long as 20 or 25 years. After these 20 or 25 years you can even end up buying the property. For all these years, you will be paying rent instead of interests. This rate will vary as per the interest rates.

Murabaha Method


According this particular method the bank buys a piece of property and ends up selling it to you at a fixed profit. It (i.e. the house or property) is registered against your name. It is very important to acquaint yourself with these types of Islamic home loans if you are looking forward to owning a house soon. If you are not being careful about taking these Islamic home loans, then you will actually end up flouting norms. Please ensure that you are taking only the right steps in this regard.

Are you living in a foreign country?


In the age of globalization, it is hardly surprising to witness the growth of Muslim population in different parts of the world. If you’re Muslim is living abroad, you can keep track of the banks, which are aware of the holy diktats of Quran and have devised their lending methods in accordance for Muslims. So, make sure you are settling for the services of these banks after, of course, researching properly on their credentials.

Best of luck for your search for that dream house of yours!