Posted by: islamicfinancingnews | February 5, 2015

An ijara mortgage primer

There are still lots of people who don’t know the differences between a regular mortgage and the more specialized ijara mortgage loans. While there a are more than a few similarities between these loans, the ijara financing version has some marked differences that you need to know about. For ijara 1example:

  • ijara loans are especially careful to be Sharia compliant so that the folks who decide on these loans are sure to be able to take advantage of the real estate opportunities in North America while at the same time staying away from riba. These ijara mortgage products have been specially designed to look after the people who want to own property and at the same time stay close to their religious beliefs.
  • There a trust involved with the ijara mortgage aspect and that’s different from the model for a more traditional loan.  One again this model has been designed to keep you away from interest payments that could compromise your religious beliefs.

Of course there are some things that are common to both models including the fact that you’ll need to have good credit to get either the ijara mortgage or the more traditional mortgage.

 

 


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