Halal Homeownership Options
We offer Halal Homeownership options through JAAG’s Rent to Home Solution. JAAG’s Halal Homeownership options allow you to build equity immediately while enjoying the freedom and benefits of owning a home even before you have the funds to purchase.
Start the process today!Types of Halal Homeownership Options
Murabaha Option (Cost Plus)
A Murabaha option (also referred to as ‘cost plus’ financing) is where JAAG buys the house and determines a purchase price at a higher rate. In practice, the amount you pay for a long-term Murabaha option ends up being almost equal to what you would pay for a traditional mortgage within the same term length. Every payment or “installment” goes directly against your principal – allowing you to join JAAG’s Rent to Home Solution comfortably. The Murabaha option is an important part of the Islamic finance industry and provides Halal homeownership options for those who wish to remain compliant with Sharia law by making a fixed monthly payment.
Musharaka Option (Sharing)
With Musharaka option, we enter into a partnership as the house owners while you gradually earn our shares in the property. You get to move in right away when the contract begins, making a Musharaka option quite similar to our standard JAAG Rent to Home agreement. You make a single fixed monthly payment.
Qualifying for a Halal Homeownership Option
Qualifying for a Halal Homeownership Option in Canada involves meeting similar requirements set in traditional Rent to Home Solution. Before being approved, we’ll look at:
- The borrower’s income
- The borrower’s credit history
- 20-25% down payment
When you’re approved and you’ve found that perfect house, you’ll begin making fixed monthly payments, and you’ll be on your way to homeownership.
What to know about Halal Mortgages in Canada
JAAG is proud to offer Halal homeownership options for those dreaming of homeownership while remaining compliant with Shariah Law. As a top-tier rent to own company, we value educating our clients on all aspects of Halal homeownership, including Halal mortgages.
Shariah Compliance
Halal mortgages in Canada are structured to comply with Islamic finance principles, meaning they don’t gain interest.
Ownership Structure
The most common ownership structure in a Halal mortgage is the Musharaka model. In this model, the lender will purchase the property and the buyer pays a fixed monthly payment. During this period, the buyer will earn shares in the property.
Understanding Halal Mortgages
Halal mortgages in Canada offer a Shariah-compliant way to achieve your dream of homeownership. Understanding the intricacies of these mortgages and seeking professional advice can help you make an informed decision and embark on your homeownership journey while adhering to your religious beliefs.
Frequently Asked Questions About Halal Homeownership Options
What are the benefits of choosing a Halal Homeownership Option in Canada?
Choosing a Halal homeownership option in Canada offers several benefits for individuals who wish to adhere to Islamic principles in their financial transactions. Firstly, we ensure that the process is structured in a way that is compliant with Shariah law, which prohibits the payment or receipt of interest. This allows individuals to finance their homes without compromising their religious beliefs.
How do Halal homeownership options differ from conventional mortgages in Canada?
The Halal homeownership process can differ from getting a conventional mortgage in Canada, primarily in that they do not involve the payment or receipt of interest. Instead, they operate on the basis of a partnership or joint ownership between the lender and the borrower with fixed monthly payments.
Is it permissible in Islamic law to enter into a rent-to-own agreement?
Yes! As long as interest is not being charged on the loan
Start the Halal homeownership process today!
