How Much Money Can We Save You?
See for yourself how financing your halal home with Manzil compares to other lenders.
What is Halal Financing?
There is a misconception out there amongst the general public that when it comes to Islamic finance arrangements that the only principle required is ensuring that there is no interest (riba) on the transactions. This is a huge misnomer because if you take two numbers and divide them you will always end up with some sort of percentage value.
$100 of profit on $400 of value can be seen as 100/(400+100) = 0.20 or 20%
What in fact is interest (riba) needs to be understood a little more clearly. Riba is where the money is provided in return when the lender did not put any work or take on any risk to earn it. In other words, the probability of profit is maximized while the risk of loss is completely minimized.
Need more information? Get in touch with our friendly staff for answers to all of your questions about Islamic banking in Canada.
What Makes us Halal?
Interest-Free (No Riba)
Under Islamic law, unjust, exploitative gains made in trade or business is prohibited. Most lenders work to ensure that the probability of profit is maximized while the risk of loss is completely minimized. With Manzil’s Murabaha Mortgage, you pay a fixed rate for the full term of upto 25 years. You heard right, we will not ask you to renew your contract with us unlike everyone else and your payment will not change, ever!
One of the major principles of Islamic Finance is to share in the risk of the transaction which is why Manzil buys the house first and then sells it back to you for a predetermined mutually agreed upon resale value. Most lenders never actually purchase the property to begin with. If the value of your home depreciates, you still only ever owe us the amount we lent out to you and nothing else!
Shariah Compliance Audits
We have three layers of shariah governance. An internal shariah auditor, an active shariah advisory board, and an independent auditor, all to ensure we comply with the strict guidelines of AAOIFI, the Accounting and Auditing Organization for Islamic Financial Institutions. Our Shariah board audits every transaction to ensure we adhere to the halal process required to make sure every Manzil mortgage is shariah compliant.
Clear & Transparent Contracts
Manzil’s contracts are not only clear and transparent but also fair. We don’t penalize you for being late or if you want to pay off your mortgage early. In fact we’ll throw you a party, a halal one of course! We’re here to help you become debt free in an ethical fashion.
Securing Your Halal Mortgage is Quick & Easy
Follow these 4 simple steps and you’re good to go!
Apply for a Murabaha Mortgage
Agree upon the Islamic mortgage repayment terms with Manzil and submit your pre-application form online.
Choose Your Property
Select your property and enter into a purchase and sale agreement on behalf of Manzil.
Manzil purchases the property and sells it back to you
Plus the agreed upon profit – taking into account your personal credit, risk profile, the value of the property, length of repayment term, and amount of your deposit.
Property is registered in your name
Sale is recorded in a Murabaha mortgage contract.
Halal Wise? See How We Compare
Features & Benefits
- Non-Compounded Rates
- Non-Recourse Mortgage
- Open Fixed Rates For up to 25 Years
- No Renewal Risk
- No Pre-Payment Penalty
- No Penalties on Default
- No Late Payment Penalty
- 1. Typically, mortgages are compounded Semi-Annually. Manzil’s Murabaha Mortgage Product does not compound semi-annually and will save you hundreds to thousands of dollars throughout the mortgage term.
- 2. Conventionally mortgages are recourse mortgages, meaning the lender has the right to go after your other assets. Manzil’s only recourse is the home that has been mortgaged.
- 3. The Manzil Murabaha Mortgage Product has fixed rates from 1 year to 25 years. Payment amount does not change for the length of the term.
- 4. The Manzil Murabaha Mortgage Product is an open mortgage and there is no limit to the amount you can prepay.
- 5. We will not charge any administrative penalties if you default on your mortgage.
- 6. If you are late to pay, you can defer your payment to a future date without penalty.
Halal Financing at its Finest
It’s such a breath of fresh air to finally have a proper halal financing option in Canada. Fixed rates for up to 25 years is amazing! It ends up being even cheaper than financing with my local bank. Can’t wait to tell my family and friends about this.
Finally! Halal Financing in Canada
I grew up in the States where we have a few options for Halal financing in place, but when you compare the products, Manzil is by far, the way to go.