Posted by: islamicfinancingnews | June 26, 2012

Saving for a down payment will help secure the Islamic finance you need

Just as it’s important to be aware of the different Islamic loans free of Riba that are available today, it’s never too early to start saving for a down payment to buy a home and take advantage of the current record low mortgage rates in North America. New home buyers need a down payment usually in the 10% to 20% range and there are some practical ways to begin saving for this important investment.

Start with a budget outlining your monthly income and expenses including household items, credit card debts and personal expenses. Depending on your financial situation and the type of home you want to purchase, you can decide how much money to set aside each month towards a down payment. Be objective when it comes to your budget and look for ways to cut back on expenses. For example, you might be surprised to learn how much money you can save on gas, parking and wear and tear on your automobile by taking public transportation to work on a regular basis.

Consider having a portion of your pay deposited directly into a separate bank account specifically for these extra funds. Watching the money grow is good incentive to keep moving forward with your savings plan.

Without a doubt, the earlier you start to save money to enter the real estate market, the better. Islamic finance options that include Islamic mortgages can help make your plans for home ownership possible.

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