Posted by: islamicfinancingnews | October 23, 2013

Islamic loans are mortgages. Here’s a few tips on getting a good one

One of the first things that people need to remember when they are looking at getting Islamic loans is the fact these are mortgages and act accordingly islam-11except for the fact you don’t need to consider riba with one of them. Still, there are enough similarities that you should be considering these tips when shopping for Islamic finance.

  • Consider a lesser amount than what the banks say you can afford. Remember these financial institutions won’t take into account your other personal expenses and the money you might need for repairs, renovations and other costs like utilities. It’s important to look at the personal picture here and make sure you’ve taken these other expenses into account.
  • Take into account the impact of an increasing interest rate. Rates are at historic lows now, but all the pundits expect them to rise at some point in the future. Take into account what this will do to your mortgage and how it will affect a line of credit and other payments that you need to make.

Remember that although Islamic finance will keep you free from riba, there are other dangers you need to take into account. Looking at the entire picture is the most sensible business plan.

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