ZERO Mortgage - Is there a 100% Shariah Compliant HALAL mortgage in Canada

[Yazin]

Zero mortgage == Conventional mortgage at a higher rate plus a useless contract after the closing that is not with the lender. There is no Halal part as you will sign the exact mortgage papers with a conventional mortgage.
STAY AWAY
Same as Ijara but Ijara's rate even higher.

Are there other financial institutes in Canada that are claiming they have a Shariah Compliance Mortgage

 

[Checkout]

Zero mortgage == Conventional mortgage at a higher rate plus a useless contract after the closing that is not with the lender. There is no Halal part as you will sign the exact mortgage papers with a conventional mortgage.
STAY AWAY
Same as Ijara but Ijara's rate even higher.

Are there other financial institutes in Canada that are claiming they have a Shariah Compliance Mortgage

 

[Checkout]

There are programs that qualify under Shariah compliant.

 

[Vanknight]

Zero mortgage == Conventional mortgage at a higher rate plus a useless contract after the closing that is not with the lender. There is no Halal part as you will sign the exact mortgage papers with a conventional mortgage.
STAY AWAY
Same as Ijara but Ijara's rate even higher.

Are there other financial institutes in Canada that are claiming they have a Shariah Compliance Mortgage

Zero mortgage is totally a scam, on their mediocre website they stated themselves as "referring institute" and they are bunch of scam artists complemented by a mortgage broker named Youssef Azad to facilitate their scam.
I have asked Mr. Azad if this is really Halal mortgage and he was laughing saying "of course" it's Halal. Very shady agent.

 

[Yazin]

It's not only Youssef Azad that is shady, I have contacted Nabil Khan and asked him if you have a broker in Vancouver he literally told me I can't get you a broker unless you work your deal (purchasing a home) thru me. Sorry I thought you were the Imam but it appeared he is a real estate agent too. This Zero mortgage is totally run by a bunch of clowns.

 

[Vanknight]

But where do get all those "Mufties" from, South Africa, Malaysia and Bahrain they looking like an international ring of scammers. all their sheikh are bearded except for sheikh Habib he is kinda of modern sheikh

 

[Yazin]

There are programs that qualify under Shariah compliant.

Can you elaborate more please, been searching for years already and didn't find one

 

[Vanknight]

This is posted on a Google review for Zero mortgage and their scam artists"

"Zero Mortgage is not a true halal Islamic financing option. They certainly do advertise and present themselves as one by getting endorsements from unknown sheikhs/imams and by using Islamic lending terminology to confuse the common layman.

As a student of knowledge and a working professional in financial services, Zero Mortgage violates halal lending principals in their so called diminishing musharakah (rent-to-own) contract. First, they do not have any ownership in your property and second, and most important, their source of money to loan out is traditional interest based loans from credit lenders in Canada, Main Street and Meridian.

Zero Mortgage is more or less a glorified broker, serving as a middleman between you and their lenders, using traditional interest based financial lending vehicles. If one wishes to avoid interest, find another alternative (sadly there are less than a handful of viable options in Toronto). If one wishes to get a real mortgage, consider using a conventional bank/broker that is transparent and provides cash back at least. "

 

[Yazin]

Thanks Vannight for sharing this information, Zero mortgage is totally exposed and I hope more people can come forward and share their experience to help others not to fall into their scam scheme

 

[Yazin]

I have asked the question below to Realtor sorry I meant Imam Nabil Khan and didn't get a response from Mr. Imam other than he said he is closing his deals as a realtor at lower rate. Also the question was asked to "Sheikh Khabib" on a webinar and he just skipped the answer.

"According to the Hadith “There is no harm, reciprocating harm” Why should Muslims choose Zero mortgage over conventual mortgage. The process is exactly the same with the exception of Musharakah contract that is only delivered after been approved by the lender to tweak the naming convention of Interest to “profit or use of property”. The rate offered by Zero mortgage can be higher up to 50% more than HSBC bank rate not talking about credit unions that offer lower rates. Is paying a higher premium to the “halal process” justified pushing the borrower to the limits and may get defaulted by paying extra hundreds a month to go towards “profit” and not the principle."

For me I got what they called a piece of paper called "Wakala" that is printed by one of the scammers and not with the lender, also I have other brothers that got the "Musharakah" agreement weeks after closing and didn't sign it as it bears no legal value.

 

[Imran Rentia]

I have also been researching a lot of these islamic banks for home loans, So far I have found only Manzil to be shariah Compliant, but do your own research, I am not endorsing Manzil in any way.
Search for this guy named Ali Tunio on YouTube, he made really nice videos on Halal Mortgages on how some Islamic banks loans are not actually shariah compliant. The only problem with Manzil is that they have a very long waiting list.

 

[Yazin]

Thanks Imran, I watched the "Halal Mortgages 101 | Everything you need to know...Almost!" video on youtube by Ali Tunio and it was so informative. I wish that video was published earlier when scam artists like Zero Mortgage and others started exploiting religion for their own interest.

 

[Vanknight]

The following statement is from what called Zero Mortgage global site

"PRIMARY CONTRACT The primary contract is the Musharakah contract, which is key to ensuring the Zero process is Halal. The Musharakah contract states the Halal Payment Amount, which does not constitute interest or Riba, because profit is paid as the beneficiary for the use of the property rather than profit on loaned money as is the case in a conventional mortgage. Secondary documents may use the other words, however, the reality is not that of usury but trade. In addition, in Islam the primary contract is the decisive factor. It is similar to Zabihah (Islamic Animal Slaughter) process where the first step must be according to Islamic law. The contract between Funder and client bear some resemblance to traditional mortgage contracts, however, this is to look at only one part of the contract and ignore the primary Musharakah contract. The primary Musharakah contract is fundamental to setting out the relationship of the parties, and the Halal nature of the agreement. In many cases in Islam, things could be termed as Halal or Haram based on the primary contracts and processes such as sexual relations and meat consumption. A process initially takes place to make things Halal i.e. marriage and Zabihah respectively. "

Zero Mortgage brags about this statement and analogy on their webinars which is a totally false and deceiving statement due to the following.
1 - If this is a primary contract that Zero managed to obtain from their lenders then why you need to sign the conventional mortgage document (Zero will say it's Bank of Canada regulation). Then this contract has no legal value.
2- Why this contract comes couple of weeks after closing, the primary should come first right.
3- Why your mortgage agreement with lender will still valid even if you don't sign this scam contract, maybe the difference is your mortgage is not going to be certified Halal or Shariah compliant according to Zero Mortgage.

I have watched Ali Tunio video on youtube and simply his analysis and review on what called Islamic finance in Canada expose those scammers like Zero Mortgage and others. They are taking advantage of distressed and desperate Muslims that are trying to secure a home in an overpriced real estate market for personal gain.

 

[Yazin]

Thanks Vanknight, This is exactly how they got me thru their broker Youssef Azad as he kept saying that I will get the "Primary Contract" after the mortgage is finalized then he started to sneak out by saying he is an independent broker after getting his commission and has nothing to do with those scam artists from Zero Mortgage. Still he said he paid them 60% of the commission made out of my "NON-HALAL" mortgage

 

[Vanknight]

The following questions were asked to Zero Mortgage Bay Street Canada and posted on Islamic Finance Guru website but never been answered by Zero Mortgage because they don't have an answer.

• Is the diminishing Musharaka a legal document, I mean does zero mortgage file that in the land deeds office and accordingly allocates a percentage of property between the lender and the borrower?
• If the complete ownership of property is with borrower, how can it be considered diminishing?
• If the payments are to be considered as rent, then why is the relevant market value of rent for the property not considered? And also how can that be fixed for say 5 years if we take a fixed term contract?
• The value of the property with time (increase or esp. decrease) does not affect the amount owed back to the lender. Isn’t that a pure finance? There’s no risk shared by the lender, Musharaka contracts mean the loss should be shared. Is this truly halal?

The answer to these questions are as the following and surely some answers were posted online thru this forum or online reviews:

- There is no LEGAL document to be provided by the lender to the borrower
- It's only diminishing contract is on Zero mortgage illusion, it's simply a conventional mortgage
- Part of Zero mortgage scam, the use the term "rent" on their worthless document, but the actual mortgage contract is purely a mortgage with the published interest rate
- The answer from Zero mortgage is that you keep the profit and you will be the first to take a hit with losses, if the losses are more than what you already paid then the lender take the second hit. Having said that it would not include the "RENT" or interest you already paid. Sounds like a mortgage.