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Halal Mortgage

At Canadian Capital Financial Services we understand and respect the diverse financial needs of our clients. Our commitment to providing ethical financial solutions has led us to introduce Halal Mortgages, catering to individuals seeking Shariah-compliant financing options.

What is a Sharia Compliant Mortgage?

A halal mortgage, adhering to Islamic law, avoids interest (Riba). It addresses the challenge faced by many Muslim Canadians in reconciling home ownership with their faith.

As Canada's Muslim population grows, the demand for Islamic financing is expected to rise.

Eligibility for Sharia-compliant mortgages in Canada

Qualifying for a Sharia-compliant mortgage in Canada depends on the agreement with the financing entity, who assesses collateral to manage risks associated with the home purchase (Murabaha, Musharaka or Ijara). Typically, a 20-35% deposit is required. Home buyers may need to disclose income for monthly payments, and financial instituitions may conduct a credit check with consent.

Types of Sharia Compliant Mortgages

Sharia Compliant mortgages adhere to Shariah principles and are structured based on Ijara, Murabaha, or Musharaka. Here's a brief overview of each:



Functions like a rent-to-own agreement, with the customer starting as a renter and becoming the owner after the final loan payment. The home is purchased by a trust and leased to the customer.



Involves a cost-plus financing structure, where an Islamic financial company owns the home and sells it to the client with a price including a profit rate linked to the Bank of Canada’s overnight lending rate. The client makes fixed monthly payments over the contract period (usually up to 15 years).



Establishes a co-ownership between an Islamic financial company and the client, both named on the home's title. The client resides in the home, and over the mortgage term (up to 30 years), the financial company's equity position decreases.

Benefits of Sharia-Compliant Mortgage

Enables Muslims in Canada to buy homes while adhering to Sharia.

Offers fixed payments to avoid payment fluctuations for the home buyer.

Potential avoidance of penalties if selling the home prior to full payment of the outstanding balance.

Consult our experienced advisors for expert guidance and a comprehensive understanding of our Halal Mortgage offerings. Contact us today to take the first step towards a Shariah-compliant and ethical financial future.


Canadian Capital Financial Services - Your Partner in Ethical Finance.

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