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.
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.
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!