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Anyone doing/done mortgage with Ijara Canada (Ijara loans)

Discussion in 'Housing' started by newcomer, Oct 6, 2012.

  1. Hi,

    Is there anyone who has got his/her house financing through Ijara Canada Or anyone having any experience with them ,
    please share?

    Thanks
     
  2. I have a friend in Mississauga that did a direct finance (they have two products, direct and conversion), the rates were good, a bit of confusion between the Canadian attorneys regarding the different documentation, but overall very happy and moved into home on time, I am going to apply with them next summer.
     
  3. Don't go for pvt. finance mortgage. Go to any bank, instead.
     
  4. Hi NewCommer,

    I am wondering if you have collected any information about this topic. I want to see how safe it is to buy house through Ijara Canada. My intend is to not deal in interest etc... Thanks
     
  5. Im also looking to apply for a home through Ijara Canada very soon. If anyone has dealt with them, please let me know of your experiences.
    Thanks
     
  6. I tried to go with them, they gave me a hard time and I still have the contracts I can PM them to anyone interested if I can find a way but I just signed up here maybe that's why I still don't have access to personal messaging yet... anyways let me know your emails if anyone wants to see the contracts.
     
  7. Dear Muhammad,
    I was thinking to go with Ijara Canada. It will be a great help if you send me the info you have.
    Thanks
    Ijaz
     
  8. Salaam Brothers,

    I had tried to take Loan from them in 2015, but I changed my mind. I was not convinced if they are 100% halal. This is not a Finance forum neither I am expert in this domain but they seem to go for some numbered incorporation and that incorporation is dealing in interest. (So interest is still there).

    So if you know any better Halal ones (if exists) then let me know.
     
  9. What is your email?
     
  10. Yes I have a mortgage with them..
     
  11. are they halal and free of interest?
     
  12. Most of them have interest involved in one way or another. What makes them halal are the terms meeting Islamic requirements. I'm not well versed in this matter myself. But I have sat down with Al Barakah and Zero Mortgage and was convinced more with the latter. Also, a friend just recently got approved through Zero. Looking at it from outside, it's like any conventional mortgage and the actual loan is being offered through a third party lender. I'm not sure of Ijara's current model - has been years since I last looked into them. Most of these institutions are very strict in selecting their clients and approving them.
     
  13. None of them are free of interest. They all, like every other Islamic bank in the world, operate on the same principles as conventional banks, and just change the term "interest" to "profit" or "markup". There is not a single Islamic financial institution that truly operates according to the principles of Islam as they refuse to:
    1) Share risk with their clients (i.e., incur a loss when the market conditions deterioriate or prices fall); and
    2) Predetermine the cost of the loan for the entire mortgage tenor (i.e., fix the profit rate up front for the duration of the loan. Instead they peg their "profit rate" to LIBOR, or some other interest rate benchmark).
     
  14. Salam everyone,

    I have investigated this topic for few months now. I have been looking for a truly islamic financing that is interest-free (Riba Free) for buying my first home. My goal was to not engage in any contracts that were not islamic, and was not willing to compromise. I wanted to share with you my findings here as I had dived into the details of islamic financing and its principles, and give some guidance to interested brothers here wanting to buy their homes Riba-free.

    Even-though I live in Ontario, Canada, the best legitimate resource and reputable fatwa I found was from the Assembly of Muslim Jurists of America (AMJA) website regarding this matter, where AMJA had issued a detailed fatwa back in 2014 after reviewing islamic home financing programs/contract (islamic mortgage) in the USA. It explains the many types of islamic mortgages, and explained what is permissible from what is not. I invite everyone here 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

    I also wanted to share my findings of available islamic mortgage companies here in Canada, and reviewed/analyzed some of their contracts. Out of many who claim to provide Riba-free and islamic mortgage, I only found one which is at least the most safe if not fully permissible (halal) option. Ansar Housing (Ansar Co-operative Housing Corporation Ltd), I found the best option when it comes to Riba-free islamic mortgages, but since they are self-funded, and absolutely do not rely on any Bank for funding, they are very limited when it comes to financing for the Muslim community members, and thus, doesn't necessarily meet the needs for everyone with limited financial resources. I hope my participation will be useful and helpful for all brothers and sisters who are truly avoiding falling into a Riba or Haram transactions

    Amro
     
    Brown_Sugar and stepover like this.
  15. Here is a resource for you regarding Ijara Loans in the link below (look for Ijara Loans within the web page link. I have also pasted it here in both English and Arabic after the URL link):

    amjaonline.org/en/articles/entry/amja-resident-fatwa-committee-resolution-about-islamic-home-financing-companies-in-the-us

    I am not sure if Ijara Loans have changed their mortgage contract since this fatwa back in 2014, but most likely their funding hasn't changed.

    ----------------------------------
    Ijara Loan: This company starts by directing the purchaser to get a standard interest-based [mortgage] loan and then creates a trust with the purchaser a partner in the trust, in order to borrow from the bank and then get ownership of the property. After that, the trust will sell the house to the purchaser with a rent-to-own contract. The purchaser is alone in getting the interest-based loan at the beginning and then shares in it at the end.

    The ruling of the Committee is that it is not allowed to deal with this company as their model contains clear and explicit interest. We advise those in charge of this company to review and correct their model and to fulfill the trust that has been put in them by those who wish to avoid interest in their financial dealings.
    ----------------------------------

    وهذه الشركة تبدأ بتوجيه العميل إلى قرض ربوي بين، ثم تنشىء شركة اعتبارية يكون العميل جزءا منها، لتقترض من البنك وتتملك العقار، ثم تعيد بيعه إلى المشتري بعقد إجارة منتهية بالتمليك، فالمشتري تفرد بالقرض الربوي في البداية، ثم شارك فيه في النهاية!

    وفتوى اللجنة أنه لا يجوز التعامل بعقود هذه الشركة لما تتضمنه من الربا الجلي الصريح! وننصح للقائمين عليها بمراجعة هذه الصيغة وتصحيحها، وفاء بالأمانة التي أناطها بهم عملاؤهم ممن يريدون التحرر من الربا في معاملاتهم المالية.
     

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