Posted by: islamicfinancingnews | November 25, 2013

Some good Islamic finance tips

Getting Islamic mortgages is a big first step on the path to owning a home and building up equity. Although credible lending institutions will tell you what you need to know to make a smart choice, it’s important to do a little homework before the process starts to get the Islamic loans that suit you.  Here’s a few helpers you can use to steer clear of any problems.

  1. Most lending institutions use a calculation to help arrive at a number for the mortgage you can comfortably pay back. They arrive at the Total Debt mortgages #4Service ratio and while that number is a good ball park figure, it doesn’t take into account your personal situation or any fluctuations in your lifestyle. It’s best to take a mortgage smaller than the highest number you get approved for to play it safe.
  2. Factor in increasing interest rates. Remember even a 2% interest rate hike can cost you as much as $300 per month if you have a bigger mortgage. It’s wise to do a few calculations on rising rates and the impact on your money.

Finally, remember that most lending institutions will be there if you need some help with your Islamic mortgages, but you need to be proactive and let them know there’s an issue when you see one on the horizon.


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