Our Islamic Financial Services FAQs

Learn more about our investment and financing products.

1. What makes the Manzil Mortgage Product Halal?

Our scholars from Islamic Finance Advisory & Assurance Services or IFAAS, have critically reviewed all the documents pertaining to our Islamic mortgages and finance products, and they have certified that this fund meets the strict Shariah standards of the Accounting and Auditing Organizations of Islamic Financial Institutions (AAOIFI).

2. Are your financial products AAOIFI compliant and why is this important?

Yes! In fact, the Manzil Mortgage Product is the only AAOIFI Standard Certified Halal Mortgage in all of Canada. Being AAOFI compliant means that you, the customer, can rest assured that every aspect of Manzil's Mortgage product is adhering to strict shari'ah guidelines to ensure a 100% interest-free, halal product. AAOIFI, established in 1991 and based in Bahrain, is the leading international not-for-profit organization primarily responsible for development and issuance of standards for the global Islamic finance industry. It has issued a total of 100 standards in the areas of Shari’ah, accounting, auditing, ethics and governance for international Islamic finance.

3. Who are your Islamic Scholars?

We have partnered with  the world renowned Islamic Finance Advisory and Assurance Services. The team consists of scholars for certification, auditors, and finance managers.

4. Where do the funds that are used for the financing come from?

We’ve created a Halal Investment Fund, whereby any eligible individual or institution, can invest to receive quarterly income disbursements.

5. What Fatwa are we using?

Our Shariah Advisors, IFAAS, have certified our Mortgage product, meaning it complies with AAOIFI Shariah standards. We are excited to be among the only financing companies in Canada offering this compliance.

6. Are Manzil's rates cheaper than my local banks?

If we’re looking at an ‘apples to apples’ comparison, the Manzil murabaha mortgage product is in fact cheaper! Here is a comparison of how our open fixed rates compare to other lenders open fixed rates. Unfortunately other lenders do not have many term options when it comes to open rate mortgages, but Manzil has every term possible from 1 year to 25 years.
Term Manzil Other Lenders*
1 year 3.49% 4.50% - 7.25%
5 year 3.49% 5.75%
10 year 3.99% unavailable
15 year 4.49% unavailable
18 year 4.79% 8.50%
25 year 5.49% unavailable
*1 and 18 year rates taken from www.ratehub.ca and 5 year (variable open) from www.lowestrates.ca as of October 10, 2019

7. Is it variable or fixed and why does this matter?

The Manzil Murabaha halal mortgage product is considered a fixed product with a fixed term. Because we sell the property back to you for an agreed-upon price, this means that your costs will never change for the entire term.

8. What is the minimum down payment?

Manzil requires a minimum down payment of 20%. Since these mortgages are not based on interest, they do not fit the profile of “insurable” mortgages from organizations like CMHC and Genworth.

9. How often can I make a payment?

Payments can be made weekly, bi-weekly, semi-monthly, or monthly.

10. Can I pay my mortgage off at any time?

Yes you can! You can pay off your outstanding balance at any point during the term of the mortgage.

11. What amortization periods does Manzil offer?

Manzil offers amortizations up to 25 years. Note that our amortizations go hand in hand with the financing term e.g. 25 year term AND amortization as opposed to a bank mortgage that offer mixed terms from 1 to 10 years with amortizations of up to 30 years.

12. Who owns the property?

You (the borrower) owns the property. Manzil adds a lien on title for the amount of money we lent to you.

13. Do I have to be Muslim to Finance or Invest?

Absolutely not! We do not limit financing or investing to people based on their religion, race, gender, or creed. We welcome everyone to explore Islamic banking in Canada and our exceptional service. In fact, many non-Muslims find our products to be very competitive and appealing due to the ethical standards we’ve established.

14. What is the maximum loan amount?

The maximum loan amount is $4,000,000 based on a minimum 20% down on an appraised home value of $5,000,000.

15. How is profit calculator? What is the markup/profit rate?

Profit is based on a national rate of 3.50% to 5.50% depending on the term of the mortgage.

16. What is total cost and profit?

Please visit the ‘Mortgage Calcultor’ on the home page to view an illustration on what the total cost and profit would be.

17. What will my monthly payments be?

Please visit the ‘Mortgage Calcultor’ on the home page to view an illustration on what your monthly payments would be.

18. What are the conditions?

As this is a true Murabaha contract, there are no conditions.

19. What is the term of the financing?

Manzil has terms between 12 months and 25 years and we have created the very first 10+ year term mortgage. This means that your payments will not change for the term of the mortgage. No one else in Canada, nor its finance industry, has this, we dare you to find one!

20. Do you offer personal loans to individuals?

Unfortunately, not at this time. We do plan on expanding our product shelf so please keep telling us what you would like for us to create so that we can address your needs!

21. Do you offer student loans?

Unfortunately, not at this time. We do plan on expanding our product shelf so please keep telling us what you would like for us to create so that we can address your needs!

22. In case of dispute, which laws will be enforceable?

If we have to go to court, it will be in the Province of Ontario.

23. Where is Manzil available?

We are currently only available in Ontario with plans of rolling out in Quebec starting in 2020.

24. Can I transfer my existing mortgage to Manzil?

Unfortunately we do not offer transfers and refinancing at this time. Inshallah we will be able to offer this option in the future.

25. Can I get pre-approved for home financing?

Absolutely, all you have to do is click on our apply now .

26. Who owns the property?

You (the borrower) owns the property. Manzil adds a lien on title for the amount of money we lent to you.

28. Do you have a “Hajj Option?”

This option is not currently available, but we hope to roll it out some time in late 2020.

29. What are the fees associated with the financing?

A 2% lender fee will be applied at the time of closing.

30. Are there any additional costs or fees associated with a Manzil mortgage?

Manzil believes in fairness. That's why we won’t charge you any types of administration fees, monthly or annual fees or any of the like to set up your mortgage. You are still required to pay the appropriate closing costs which includes but is not limited to: land transfer tax, lawyers closing costs, real estate fees and anything else associated with the purchase or sale of the subject property.

31. What will happen if I can’t make a payment?

While we don't expect you to be late making your mortgage payments, from time to time it happens. We are more than happy to work with you if a life event comes up that requires your payment date to be pushed out. However, in the instance where a mortgage payment comes back NSF without notice, we will assess an NSF fee that will only recover the cost of the missed payment. Under Shariah law, penalties are in place as a moral deterrent to ensure that no party is taking advantage of the other. 100% of any penalty assessed will go to covering any associated costs; Manzil will not profit from these penalties.

32. Can I pay off my home financing loan at any time?

Yes, our Manzil contract is an open loan, meaning you can pay it off at any time.

33. Is the Manzil mortgage structure legal in Canada?

Yes it is! Global legal and accounting firms have opined on the structure to comply with the following legislative authorities that govern Mortgages, Housing/Lending, Property and Contract laws:
  • Bank Act of Canada
  • Disclosure of Interest (Banks) Regulations
  • Mortgage Act of Canada

34. How do you structure the actual transaction of purchasing the home?

Take a look at the How it Works diagram on our home page.

1. What makes the Manzil Mortgage Investment Fund Halal?

Our scholars from the Islamic Finance Advisory and Assurance Services (IFAAS) have critically reviewed all the documents pertaining to this fund and they have certified that this fund meets the strict Shariah standards of the Accounting and Auditing Organization of Islamic Financial Institutions (AAOIFI).

2. Are your financial products AAOIFI compliant and why is this important?

Yes! In fact, the Manzil Mortgage Product is the only AAOIFI Standard Certified Halal Mortgage in all of Canada. Being AAOFI compliant means that you, the customer, can rest assured that every aspect of Manzil's Mortgage product is adhering to strict shari'ah guidelines to ensure a 100% interest-free, halal product. AAOIFI, established in 1991 and based in Bahrain, is the leading international not-for-profit organization primarily responsible for development and issuance of standards for the global Islamic finance industry. It has issued a total of 100 standards in the areas of Shari’ah, accounting, auditing, ethics and governance for international Islamic finance.

3. Who are your Islamic Scholars?

We have partnered with  the world renowned Islamic Finance Advisory and Assurance Services. The team consists of scholars for certification, auditors, and finance managers.

4. What kind of Investment return can I expect?

Although we cannot predict or guarantee returns, the Manzil Mortgage Fund’s target return is 4.00% per year, paid quarterly.

5. Is the Manzil Mortgage Fund available to Investors Across Canada?

Yes! We strive to be among the most accessible financial companies in Canada. Therefore, we are available to investors across Canada; including Quebec.

7. Is the Manzil Mortgage Fund available to Foreign Investors?

Yes! We are available to investors all over the world.

8. Can I invest through my registered account (i.e. RRSP, LIRA, or TFSA)?

Yes, our fund has the ability to accept all types of registered accounts including cash accounts (personal and corporate) Non-Registered accounts.

PLEASE NOTE: RESP’s are not currently supported.

9. Can I invest in your fund through my Investment Advisor?

Unfortunately at this time you cannot. We are currently engaged in many discussions with all the major financial institutions to get our fund on their shelf for distribution. As the fund becomes available to these broker dealers we will keep you informed.

10. Who is Fundscraper Corp. (“Fundscraper”)?

Fundscraper is registered with FSCO as a mortgage brokerage and with the Ontario Securities Commission (OSC) as an EMD in the Provinces of Ontario, British Columbia, Alberta, Quebec, and Prince Edward Island. We have partnered with them to act on our behalf to ensure fiduciary duties are appropriately conducted for our investors.

11. Where are my accounts held?

Your accounts will be opened with Computershare. Computershare Trust Company of Canada is a federally regulated entity that provides Dealing Representatives (DR’s), Exempt Market Dealers (EMD’s), Private Issuers and their stakeholders with all-inclusive trustee, record keeping and account administration services for exempt market securities held in TFSAs, RRSPs, LIRAs, and non-registered accounts. It should also be noted that Computershare is authorized to act as trustee in all jurisdictions across Canada; including Quebec.

12. As an investor of the Manzil Mortgage Fund, can I also be a borrower?

Yes you can; your first step is to submit your application online for us to review.

13. Is the Manzil Mortgage Fund available by Prospectus?

No. Our fund is actually a prospectus exempt product. In lieu of this, we have what is called an Offering Memorandum (OM). An offering memorandum is a legal document that states the investment objectives, risks, and terms involved with a private placement. This document includes items such as a company’s financial statements, management biographies, a detailed description of the business operations, and more.

14. Do I have to be Muslim to Finance or Invest?

Absolutely not! We do not limit financing or investing to people based on their religion, race, gender, or creed. We welcome everyone to explore Islamic banking in Canada and our exceptional service. In fact, many non-Muslims find our products to be very competitive and appealing due to the ethical standards we’ve established.

15. Are there any fees associated with investing in this fund?

The Manzil Murabaha Mortgage Fund charges a standard 1.50% Management Expense Ratio (MER). This fee is paid to the Manzil Mortgage Mnagement team for the ongoing management of the fund. There are also fees involved with maintaining your accounts at Computershare.

16. Who is the Manzil Mortgage Fund's auditor?

We have partnered with MNP LLP as the auditor. MNP is one of the largest full-service chartered accountancy and business advisory firms in Canada. MNP’s head office is in Calgary, Alberta, and has offices from Vancouver Island to Halifax. With over 4,500 staff, MNP is currently ranked as one of the largest professional service firms in Canada.

17. Who is the Manzil Mortgage Fund's Administrator?

We have partnered with SGGG as the fund administrator. They provide Fund Valuation and recordkeeping for Fund Managers and currently have $32.8Bn in Assets Under Administration (AUM)