Posted by: islamicfinancingnews | July 15, 2013

Islamic mortgages can help you fulfill your mortgage obligations

Kita-Disyorkan-Memilih-Islamic-Loan There are certain financial responsibilities that are part and parcel of home ownership including the different ways you need to qualify for proper Islamic loans to get you started.

One year ago, Ottawa tightened mortgage lending rules on government insured mortgages across the country. These new rules not only reduced the amortization period (from 30 to 25 years), but also lessened the amount Canadians could borrow against the equity in their home (from 85 to 80 percent), all in an effort to make sure borrowers were not taking on more debt than they could handle. While first-time homebuyers were expected to be hit the hardest by the new rules, a recent BMO (Bank of Montreal) survey reports approximately 66% of buyers reported the changes implemented last year were not a factor in their plans to purchase a first home.

Results from the survey revealed $300,000 is the average amount buyers in Canada plan to spend on their first home with $48,000 (or 16%) as the average down payment. According to the new rules, purchasers with a down payment of less than 20% of the home’s value are required to purchase mortgage insurance through CMHC. Coming up with a down payment of at least 20 percent is the primary concern for most home buyers according to Laura Parsons, a mortgage specialist with BMO.

Having sufficient money in current accounts to satisfy the required on-account payment or traditional down payment is one of the prerequisites when you apply for proper Islamic mortgages to buy a home and the above noted mortgage expert suggests borrowers who work on maximizing their savings have the extra discipline needed to fulfill their mortgage obligations.

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