Posted by: islamicfinancingnews | June 29, 2013

Are you eligible for Islamic loans to purchase a home?

islam-31 You’ve decided the time is right to buy your first home, but before you sit down with your lender to discuss financing alternatives like Islamic loans to make the purchase possible, you need to carefully review your finances. Here’s a couple of things to consider.

  • Start by calculating all of your monthly debt payments. That includes credit cards, lines of credit, personal loans and student loans.
  • Next, calculate your monthly expenses against the amount of income you bring in. This column should include household expenses as well as the payments you make each month towards the above noted debts. An objective look at these figures will help you decide where you can cut back, whether you should add a monthly mortgage payment to the mix and just how much of a payment you can afford.

In addition to the size of the down payment you’re going to make towards your first home, the type of house you can afford to buy will depend on these calculations. Experts suggest monthly home costs should never exceed more than 32% of your gross monthly income.

Your Islamic finance lender is ready to help you get the rates and terms that suit your budget and lifestyle and that includes evaluating your eligibility for Islamic mortgages free from Riba.


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