Shariah-Compliant Financing

Affordable, Halal Home Financing

Manzil is the only institution in Canada that has access to open fixed (Murabaha) and variable (Musharaka) rate Halal certified mortgages with payment terms of up to 25 years. No pre-payment penalties and no profiting off of delayed or default payments.

*Manzil mortgages brokered by Stanford & Chase Capital Corp.

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What Makes us Halal?

Interest-Free (No Riba)
Interest-Free (No Riba)

Under Islamic law, Riba (or interest) is defined as any increase on a loan money, and it is prohibited. At Manzil, we do not deal in interest as we do not lend out money. We actually buy and sell properties for profit, becoming like a trader, not a lender. Furthermore, we never use conventional instruments, and we ensure that we don’t pay or receive any interest.

Shariah Compliant Transactions
Shariah Compliant Transactions

Our investment, finance and mortgage products are based only on Shariah compliant underlying principles including Murabaha (cost plus sale), Musharaka (partnership) and Wakala (agency). Furthermore, we follow strict processes and procedures to ensure conducting each transaction in line with the Shariah compliance requirements, thus making sure that the end product that we offer you is Shariah compliant end to end.

Shariah Governance
Shariah Governance

We have three layers of Shariah governance. An internal Shariah auditor, an active Shariah advisory, and an independent external Shariah auditor, all to ensure we comply with Shariah requirements as set out in the Shariah standards issued by AAOIFI, the Accounting and Auditing Organization for Islamic Financial Institutions. Our Shariah board advises on and audits our transactions to ensure they are conducted in line with the Halal process required to make them Shariah compliant.

Clear & Transparent Contracts
Clear & Transparent Contracts

Manzil’s contracts are not only clear and transparent but also fair. We develop our contracts taking into account both regulatory and Shariah compliance requirements and the contracts have been reviewed by our legal and Shariah teams to ensure relevant compliance. We ensure that the terms are laid up front in clear and simple language. Nonetheless, we will be more than happy to explain if anything is not clear.

How Halal Financing is Different?

There is a misconception out there amongst the general public that Islamic finance is the same as conventional simply because both of them specify the finance cost as a percentage. This is a huge misnomer because using a percentage is just a method of pricing. Hence, what is important is not the use of the percentage but rather what such percentage represents.

For example:
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 2 scenarios from 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). 

Need more information? Get in touch with our friendly staff for answers to all of your questions about Islamic banking in Canada.

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Murabaha or Musharaka? That is the question.

See the features and benefits of a Musharaka or Murabaha mortgage and determine which one is best for you!

Musharaka

  • New Purchases, Transfers, and Refinances
  • Minimum down payment required of 20%
  • Variable-rate pegged to Bank of Canada Prime currently set at 4.45% (Prime + 4.20%)
  • Payment will increase or decrease based on Bank of Canada Rate decision
  • Terms between 1 - 25 years
  • Open contract meaning you can pay it off anytime with no penalty
  • No profiting off of delayed or default payments
  • The title is shared between you, and the financier
  • No profit-sharing but sharing of loss will occur depending on the ownership % at the time
  • You are responsible for paying Property Taxes, Utilities, and Maintenance
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Murabaha

  • New Purchases only
  • Minimum down payment required of 20%
  • Fixed-rates between 3.49% - 5.49%
  • Payment will never increase or decrease
  • Terms between 1 - 25 years
  • Open contract meaning you can pay it off anytime with no penalty
  • No profiting off of delayed or default payments
  • You own the entire property
  • No sharing in the profit or loss of your home
  • You are responsible for paying Property Taxes, Utilities, and Maintenance as the sole owner and user of the property
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Finance Your Home with Manzil

  • We’re End-to-End Shariah Compliant
  • Fixed or Variable Financing Rates with Terms up to 25 years
  • Competitive Rates
  • Easy to Apply
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