Islamic Mortgage

Islamic Mortgage

A mortgage made according to the sharia, or Islamic law, which forbids the payment or receipt of interest. An Islamic mortgage may be an interest-free loan, but often it is a more complex transaction. For example, a bank could buy a house for cash and then re-sell it to the "borrower" for a profit through amortized payments such that the profit is the same as the bank would have made had it extended a regular loan. Other types involve the bank becoming a partner with the "borrower" so that both co-own the house or business, a scenario in which the borrower gradually buys the bank's share of ownership with a series of payments.
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The FSA yesterday set out how it planned to ensure Islamic mortgage holders had the same protection as those with conventional ones.
Some extracts from the report are: - The Islamic mortgage market is now worth GBP 164 million.
LLOYDS TSB today launched an Islamic mortgage to help Britain's Muslims purchase their homes.
Dubai-based Islamic mortgage lender, Amlak Finance, has reported that its net profit declined by 77 percent to AED3.
This means that customers with an Islamic savings account or current account are not paid interest on their deposits and borrowers with an Islamic mortgage do not pay interest on their debt.
Islamic mortgage provider Amlak Finance is also proposing to extend the maturity on more than $2 billion of loans to creditors, two people familiar with the plan said.
Also, since last week there has been speculation in the market that the bank would buy the remaining stake in Islamic mortgage lender Tamweel.
The Islamic mortgage products, which include new features, were launched to address the UAE's growing demand for Shari'ah-compliant financial instruments.
Dubai headquartered Islamic mortgage provider, Tamweel, reported an alarming slump in net profit over the third quarter of 2012, dropping 46.
If you do an Islamic mortgage under Ijara, or Morabaha, then the bank has to own the assets so that property first has to transfer to the bank's name.
Sakana Holistic Housing Solutions, an Islamic mortgage finance provider, has implemented the Cheque Receivables System (CRS) from Rsquare Technologies, an IT Solutions company based in Bahrain.
An Islamic mortgage is an alternative to a traditional mortgage, as it conforms with Islamic law, which forbids both the payment and receipt of interest.
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