As per Shariah requirements in respect to financing, Manzil’s relationship with the customer is a relation of a seller to a buyer for Murabaha or a partner for Musharaka, and not a lender to a borrower as it is in conventional lending.
A lender lends money and is repaid with more money (i.e. interest which is prohibited from a Shariah point of view), while Manzil finances the transaction through buy and sell activities or a partnership, so that there is a profit on the transaction, and not interest (Riba).
Under Islamic law, Riba (or interest) is prohibited as it's an exploitative arrangement that keeps the poor stuck with ever-growing debts while the rich increase their wealth without creating any extra value.
Our investment, finance and mortgage products are based on Shariah compliant underlying principles including Murabaha (cost plus sale), and Musharaka (partnership).
Three layers of Shariah governance:
1. Internal Shariah compliance function
2. Active three member Shariah Supervisory Board
3. Independent external Shariah Auditor
Contracts are fair, clear, and transparent. Both regulatory and Shariah compliance requirements have been reviewed by our legal and Shariah teams to ensure relevant compliance. Terms are laid up front in clear and simple language.
See for yourself how a Murabaha or Musharaka financing can save you money and time since you don't have to worry about renewals or penalties.
There is a misconception amongst the general public that Islamic finance is the same as conventional, simply because both specify the finance cost as a percentage. This is a huge misnomer because using a percentage is just a method of pricing. What is most important is not the use of the percentage, but rather what such a percentage represents.
A car dealer can buy a car for $1,000 and sell it for $1,200 making a profit of $200, which can be expressed as 20%. On the other hand, a person can lend someone a $1,000 dollars and demand that the borrower pays it back as $1,200, thus making a 20% interest.
The difference between the two scenarios, from a Shariah point of view, is that the 20% made from selling the car is a permissible profit (as it involves taking risk of ownership in the items being sold), while the 20% interest on a loan is the pure definition of prohibited Riba (where the lender did not put any work or take on any risk to earn such increase).
Our Shariah Supervisory Board (SSB) have carefully reviewed the structuring and documentation of the product and issued a certificate of Shariah compliance.
Manzil Murabaha Financing Product
— Ontario
Manzil Musharaka Financing Product
— Ontario
I bought my house through Manzil a few months back alhamdulillah. A relatively young islamic financial institution yet one with huge potential. Brothers managing the company are very bright and hard-working and continuously striving to do better for the muslim ummah, mashaaAllah, tabarakallah. May Allah subhanahu wata’la bless Manzil with lots of growth and success - ameen!
We did it! Thank you all so much for the great experience together and for all the hard work and dedication each of you showed along the way. I’m overwhelmed, happy, excited, tired from moving, thankful, and a lot of other feelings that I find hard to describe.
Because of all of you, for the first time ever, we are able to buy and live in our own house, in Canada, in a Halal way. What a win, and what an achievement for all of us. Again, THANK YOU!
After searching for a shariah-compliant alternative to a traditional mortgage for our first home purchase, things were beginning to look gloomy with some companies who claimed to be shariah-complaint. I was first introduced to Manzil by a close friend and after a few discussions with the CEO, we felt all of our questions and concerns were addressed and we felt 100% comfortable with Manzil’s model.
We are very thankful to Mr. Mohamad Sawwaf and his excellent team for making our dream come true and we pray for blessings and success to Manzil in the future.
Read through our Help Center or reach out to our team to learn more about our products
Disclaimers:
*Manzil Invest is a strategic partner of OneVest Management Inc. (“OneVest”). OneVest offers wealth management products and services to Manzil customers. OneVest Management Inc. is registered as a Portfolio Manager in each of the provinces and territories of Canada, and as an Investment Fund Manager in the provinces of Alberta, Ontario Quebec, and Newfoundland and Labrador. Upon opening your account, OneVest will determine what investments are suitable for you.
** This website is to be used for information purposes only and is not intended to provide any financial, legal, accounting, or tax advice. No securities regulatory authority has assessed the merits of these securities or the information contained on this website.
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*** Your capital is at risk with any type of investment. Past performance is not a guarantee of future results or success. Please read OneVest’s investment risk disclosure for more information.
