A Truly Canadian Interest-free Islamic Financing (Riba Free)
Should you be one of those Muslim brothers searching for a truly free Islamic financing in Canada that is Riba free, I have investigated this topic for a few months now. I have been looking for truly Islamic financing that is interest-free (Riba Free) for buying my first home. My deliberate goal was to avoid engaging in any non-Islamic contracts that were not Islamic. I want to share with you my findings here as I had dived into the details of Islamic financing and its principles and provide some guide to interested brothers who want to buy their homes Riba-free.
The best legitimate resource and reputable fatwa I have found is from the Assembly of Muslim Jurists of America (AMJA) website on this matter, where AMJA had given a detailed fatwa back in 2014 after reviewing Islamic home financing programs or contract (Islamic mortgage) in the USA. It explains the many types of Islamic mortgages and explained what is accepted from what is not. Everyone is invited to read the link below, as it is very useful for every Muslim to know and understand:
amjaonline.org/en/articles/entry/amja-resident-fatwa-committee-resolution-about-islamic-home-financing-companies-in-the-us
Also, I will like to provide you with my findings of available Islamic mortgage companies in Canada, with reviewed or analyzed number of their contracts. Among many who claim to provide Riba-free and Islamic mortgage, I only found one which is at least the safest if not fully permissible (halal) option. Ansar Housing, that is, Ansar Co-operative Housing Corporation Ltd.
I found it the best option when it comes to Riba-free Islamic mortgages, but since they are self-funded and do not rely absolutely on any Bank for funding, they are very limited when it comes to their objective of financing for the Muslim community members, and consequently, doesn’t necessarily meet the needs for everyone with limited financial resources.
I hope this information will be useful and helpful for all brothers and sisters willing to truly avoiding falling into a Riba or Haram transactions
