Posted by: islamicfinancingnews | June 20, 2013

Reserve funds help you qualify for Islamic loans

islam-81 When you are applying for Islamic finance to purchase your first home or next home, there are certain factors that must be in place for you to qualify for proper Islamic loans. For example, in addition to a satisfactory credit report, you’ll need to provide a down payment of ten to twenty percent or more, as well as proof of adequate funds in reserve. This latter requirement is a necessary safeguard in the event of a financial emergency like sudden unemployment or ill health where you may need access to additional funds to make ends meet.

Financial emergencies do happen from time to time and having funds in reserve means you can avoid relying on lines of credit or high interest credit cards to deal with an unfortunate circumstance. This practical outlook is in keeping with the results from a recent Harris/Decima poll for CIBC in which a majority (71%) of respondents reported having some form of debt, while half of those were able to reduce their level of debt over the past year.

Having a basic understanding of your finances including Islamic mortgages free from Riba will help you to afford the right family home and ensure your financial and spiritual well being.

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