EDMONTON –
The Alberta government has introduced legislation that will, if passed, enable provincially regulated banks to offer halal home financing products.
Paying and receiving interest is prohibited in the Islamic faith under Shariah law, which means traditional interest-based mortgages aren’t an option for many Muslims in Canada.
A few private lending firms, such as the Edmonton-based Canadian Halal Financing Corp., do currently offer alternative financing plans that don’t include interest payments, but these alternatives aren’t available through any of Canada’s larger banks.
These alternative financing plans include a program where a financial institution buys a home on behalf of a client and charges fixed monthly payments, which includes a profit margin for the institution, until the client’s home is paid off.
Another existing option involves a financial institution and prospective homeowner becoming co-owners of a home, …