Fatwa #437324 December 2019Canada
Aya Financial, Zero Mortgage, Ijara CDC
Question
Assalam u Alaikum Imam sahib,Hope you are doing great
Q1) I need your guidance and kind advise if any of below providers are Halal Islamic Mortgage options for buying a house for my living. I am in Canada for last 10YRS, never bought so far to refrain from RIBA/Interest-based loans.
Or can you advise alternate that you have reviewed & satisfied?
Q2) What are must have checkpoints that normal consumer could use to select Islamic Mortgage options???
Jazakallah Khairan
Regards
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Respected Brother,
It is pleasing to note that you wish to refrain and stay away from interest based loans.
1. Based on our last reviews of the contracts of the three Islamic Mortgage schemes in reference, we concluded that they are not Shariah Compliant. For further detail, you may refer to the following:
Aya Financial - Fatwa: 43406.
Zero Mortgage - Fatwa: 37222.
IjaraCDC - Fatwa: 42303.
The Darul Iftaa has spent considerable time in assisting Zero Mortgage in making their product Shariah compliant. In view of the intricacies involved in the product that cannot be achieved through correspondence, the Darul Iftaa advised Zero Mortgage to meet Hadhrat Mufti Ebrahim Desai Sahib personally. Hadhrat Mufti Sahib is still committed to assist Zero Mortgage Canada to make their product Shariah compliant for the benefit of the Muslims of Canada. We await Zero Mortgage’s response to our offer.
The Darul Iftaa has also been contacted recently by Aya Financial with regards to their scheme. Hadhrat Mufti Sahib is committed to assist them in order to make their scheme Shariah compliant as well.
The Darul Iftaa has not yet approved any Islamic Mortgage schemes within Canada.
2. There are many intricacies involved in determining the Shariah compliancy of any mortgage scheme. In general, any organization offering a Shariah compliant scheme has to meet three criteria’s:
a. The scheme itself has to be one that has a basis in Shariah. For example, a home buying scheme based on the concept of Musharakah.
b. The contract must not contain any clauses that contravene the laws of Shariah.
c. The implementation of the scheme, as well as the contract, must be in conformance with Shariah.
Evidently, due to the intricacies involved, it is imperative that a scholar well versed in the field of Islamic Finance review any contract before you move forward. You may forward us any contract for our observation.
Kindly forward the contract to: admin@daruliftaa.net Ref: Hammad Jogiat
And Allah Ta’āla Knows Best
Hammad Ibn Ismail Jogiat
Student Darul Iftaa
Cambridge, Ontario, Canada
Checked and Approved by,
Mufti Ebrahim Desai.