Halal Mortgage Planned for Canada’s Muslims
With a particular focus on the Muslim community, the Ottawa government is exploring options to broaden access to financing alternatives, including halal mortgages.
Part of Prime Minister Justin Trudeau’s efforts to support Canadians aspiring to become homeowners, particularly Muslims, the Liberal government in the recent federal budget revealed that it has already begun consultations with financial service providers and diverse communities “to understand how federal policies can better support the needs of all Canadians seeking to become homeowners.”
“This could include changes in the tax treatment of these products or a new regulatory sandbox for financial service providers, while ensuring adequate consumer protections are in place,” the government announced in its Budget 2024.
The Islamic faith considers the charging of interest to be a form of usury, and considers gains made through interest to be unjust.
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Other Abrahamic faiths – like Judaism & Christianity – also consider usury to be a sin. However, financial institutions operating in the Islamic world are unique in offering mortgage and lending products that avoid conventional interest payments.
Mortgages compliant with Islamic law are already offered by some financial institutions in Canada, though none of Canada’s five “Big Banks” currently offer them.
Source: firstpost.com
