Posted by: islamicfinancingnews | June 23, 2014

Islamic home loans and the extra costs of buying

Now there’s a headline some of you probably don’t want to read because it’s about the extra costs of buying a home above and beyond what you pay with islamic home loans. A real estate agent or mortgage broker can fill you in on what these other costs are all about, but you can expect most of the following to be included right across the board:

• Legal Fees. It should be no surprise that lawyers and their assistants will want to get a piece of the action when you buy a house even when you’re using Islamic mortgage loans. Disbursements are the home inspectorcommon name for these expenses and they generally include searching titles and preparing and registering the mortgage.
• Utilities. People moving from apartments into houses are generally surprised by the fact they need to pay utilities which includes heat and hydro bills. You’ll need to budget for these extra costs when you get the keys.

Although Islamic mortgage loans are different than their Western counterparts in some significant ways, these additional costs are one of the ways in which they are the same.

 

 


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