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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AK Bars, the largest bank in the Republic of Tatarstan, introduced a pilot Islamic mortgage product in 2019.
Amlak's shareholders include the Saudi Investment Bank and Dubai- based Islamic mortgage company Amlak Finance.
This is a form of RTO with a higher entry price, since the end-user still needs to come up with a minimum of 25 per cent down payment to enter into this RTO (Islamic mortgage) agreement, and with a much longer period than other mature markets, hence becoming less affordable.
In an Islamic mortgage situation both the bank and the client share ownership [equity] and therefore share the risk of equity ownership.
Othman, said, 'We are also working on extending more products such as the ASB Islamic financing and Flexi Islamic mortgage to our RHB Easy service, which offers fast and seamless 10-minute banking system.
The murabaha (Islamic mortgage) loan agreement is guaranteed by Jordan's government, Musa Shehadeh, the bank's director general, said in a press statement.
Dubai: Islamic mortgage company Amlak Finance on Wednesday said it completed financial and debt restructuring deal with its creditors.
An Islamic mortgage is an alternative to a traditional mortgage and conforms with Islamic law, which forbids both the payment and receipt of interest.
Islamic mortgage provider Tamweel will go ahead, as a result of approval received from the Securities and Commodities Authority.
Dubai-based Islamic mortgage provider Tamweel posted a 46.5 per cent drop in third-quarter profit, missing analysts' forecasts after being hit by higher provisions and funding costs.
MANAMA: Sakana Holistic Housing Solutions, the Islamic mortgage finance provider, has successfully implemented the cheque receivables system (CRS) from Bahrain-based IT solutions firm Rsquare Technologies.
Summary: Jeffrey Graham, Partner for Borden Ladner Gervais, explains the potential of Islamic mortgage lending in Canada
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