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.

References in periodicals archive ?

In an Islamic mortgage situation both the bank and the client share ownership [equity] and therefore share the risk of equity ownership.

A brief review of conventional and Islamic home financing in Pakistan

Dubai-based real estate developer Damac Properties has tied up with Islamic mortgage finance firm Amlak Finance to allow property developer's existing customers to purchase a second property its completed and off-plan portfolio with zero capital to be paid up front.

Damac, Amlak launch 'Double Your Property'

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.

RHB expecting retail banking growth

Dubai: Islamic mortgage company Amlak Finance on Wednesday said it completed financial and debt restructuring deal with its creditors.

Amlak completes financial restructuring

An Islamic mortgage is an alternative to a traditional mortgage and conforms with Islamic law, which forbids both the payment and receipt of interest.

Check out those deals before signing; Property law expert Rukhsanah Haroon looks at the success of the Help to Buy scheme but urges buyers to find out as much as they can before committing themselves

Islamic mortgage provider Tamweel will go ahead, as a result of approval received from the Securities and Commodities Authority.

Dubai Islamic Bank approved to take 100 per cent ownership of Tamweel

Dubai-based Islamic mortgage provider Tamweel posted a 46.

Tamweel Q3 net profit plunges 46.5pc

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.

Sakana implements system

Summary: Jeffrey Graham, Partner for Borden Ladner Gervais, explains the potential of Islamic mortgage lending in Canada

Islamic mortgage lending in Canada

Summary: Islamic mortgage lender Tamweel, badly hit by the global financial crisis and the region's property bust, has set up a $1 billion bond programme, according to a base prospectus.

Dubai's Tamweel sets up $1B bond programme

Trading of the shares of the company was stopped in November 2008 after the government said that it was planning to merge the company with Islamic mortgage lender, Amlak (AMLK.

-Tamweel looking to resume trading shares

Pursuant to the anticipated adoption of a Saudi mortgage law, several groups have moved to established Islamic mortgage companies, which are seen as lucrative consumer finance providers for a socially progressive activity, affordable housing development and provision.