halal mortgage

Halal mortgages are a tool of Islamic finance and offer an equitable way to gain homeownership. They emphasize risk-sharing and mutual cooperation with the aim of checking unfair exploitation and wealth accumulation in the hands of a few. In such a system, money is a means of exchange rather than a commodity that generates profit.

Halal mortgages are becoming popular in America

Halal mortgages allow Muslims to finance home purchases while staying within the guidelines of their faith, which prohibits the payment of interest.

Halal Mortgage in Canada: How It Works, Lenders to Consider - NerdWallet Nora Dunn 2024

I’m trying to learn more about this and so far I’m extremely skeptical of halal mortgages today because I feel like the Muslim bankers prey on our vulnerability and make extra money off of us to profit. Bankers will always be bankers and them being Muslim in this case does not make me less skeptical of them.

Are “halal” mortgages more expensive than traditional ones? And do halal mortgage rates generally follow trends of riba rates (like the US Federal Reserve)? lostbutnotalone1 2025