Posted by: islamicfinancingnews | July 24, 2013

Islamic mortgages aren’t the whole financial story

islam-81 Islamic loans are by nature Sharia compliant, but when practicing Muslims are first entering the North American real estate market, it’s important to understand there are some similarities between Western and Islamic finance systems.

For example, although Islamic mortgages take away any concerns you might have about riba, you’ll still need to make sure you understand all the monies that are involved in owning a North American home. In fact, many first time buyers are often surprised they need to pay for heat and hydro, as well as property taxes. As a new homeowner, it’s a good idea to make sure to put away some money for maintenance costs too.

It’s also advisable to keep an eye on the interest rates that are being offered. Even though you have Islamic loans and the emphasis is different than on a Western counterpart when it comes to interest, it’s a good idea to be aware of these fluctuations in the market.

Finally, on top of the payments required for Islamic mortgages, make sure you have an emergency or reserve fund set aside for those unplanned events, both good and bad, that can disrupt your cash flow and shake up your routine.

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