How Islamic Mortgages Work and WHY are they Halal?

How Islamic Mortgages Work and WHY are they Halal? | IFG

Рет қаралды 19,763

Жыл бұрын

Invest with us at Cur8 Capital: cur8.capital/
Remember, with investing, your capital is at risk. This is not financial advice. If in doubt, always talk to a financial advisor.
--------
💌 Sign up to our email newsletter - www.islamicfinanceguru.com/su...
🌍 Our website - www.islamicfinanceguru.com
--------
Who are we:
We are two Oxford grads who have studied Islamic finance both at uni and classically for over 6 years. We quit our corporate law jobs to go full-time on IFG in 2020. We are on a mission to help 25% of the world's population with their personal finances.
Islamic Finance Guru (IFG) is an Islamic finance comparison and analysis site that helps people with their investment, personal finance and entrepreneurial journeys.
We do this for one reason: to make our community better-off. We want to take Muslims from being among the poorest in society to the richest. We think that this is the most effective way to deal with problems like discrimination, under-representation and poverty. For more about the team visit: www.islamicfinanceguru.com/ab...
--------
🌍 Our website / blog - www.islamicfinanceguru.com
🙆🏻‍♂️ Our investment arm, Cur8 Capital - cur8.capital
To get 📕 Islamic Wills in the UK - wills.islamicfinanceguru.com/
👨🏼‍🏫 Our Investing Courses - www.islamicfinanceguru.com/co...
🎙Our weekly podcast - www.islamicfinanceguru.com/po...
👔 Linkedin: / islamicfinanceguru
🐦 Twitter - / ifguru
📕 Facebook - / islamicfinanceguru
📸 Instagram - / islamicfinanceguru
--------
Our most popular videos:
How to invest like the 1%: • Invest Like The 1% - C...
Is Share Investing Haram or Halal? • Is Share Investing Hal...
--------
Get in Touch:
If you’d like to talk or have any questions or requests, we’d love to hear from you. Tweeting @IFguru directly will be the quickest way to get a response, but if your question is more complex, feel free to drop us a line on our Forum forum.islamicfinanceguru.com/ - we and the muftis on the forum try to respond to every one!
#investment #startup #investing#shariacompliant #halalinvesting #halalinvestment #islamicfinance #ifg

Пікірлер: 64

@bfqmedia1367 2 ай бұрын

Musharaka is literally just an interest based loan with a fancy nomenclature ontop of it. The bank is profiting off of interest or “profit” in this case. Diminishing Musharakah on the other hand is an actually Islamically viable option because the price of the house doesn’t change, and the bank makes money through rental income.

@khundmeerfahad 23 күн бұрын

@bfqmedia1367 Will the rent decrease as the person buys more equity of the house?

@bfqmedia1367 22 күн бұрын

@@khundmeerfahad If Diminishing Musharakah is applied correctly then yes, as your percentage of equity in the property increases, the amount in rent you pay decreases. I’d assume the basic utilities would be the bare minimum the bank would ask, regardless of how much percentage you have.

@gulzm1545 5 күн бұрын

If one can pay rent and avoid mortgage this is better and Allah will provide for those who choose the path of Taqwa. Stay in the safe zone and can never go astray. Allah is the best of providers

@Moe-bg1or 11 ай бұрын

In musharaka, why do Islamic finance companies calculate the “profit rate” same as a bank calculates interest rate (compound interest format)?

@uguralpkosar 2 ай бұрын

Because the value of money is determined in the conventional banking system. Islamic banking should give solutions to problems about central banks, different currencies and swaps etc. What I mean is this banking can exist due to the conventional banking system.

@jamalkhawar1238 Жыл бұрын

How is the rent determined? If they use the same metrics to calculate rent as riba is calculated by banks, is that rent halal?

@zahidhakim5727 3 ай бұрын

The bank you borrow from borrows using an interest based transaction.

@mahmood03 Жыл бұрын

Can you guys make a video on pfida formerly known as primary finance please. The set up seems good but I've not heard much about them. Jazaka'Allah khair

@nourali2204 Жыл бұрын

Easier said than done. Which banks do that and we need more information regarding these two methods

@theprofessor5584 Жыл бұрын

Mashallah, With musharakah type of purchase lets say you have a house 900k you pay 100k and the bank pays 800k, would you be paying rent of lets say 3k a month that is separate and whatever else goes towards the banks 800k? If so how is this different than a mortgage loan where they pay the interest and then the principal?

@riazhoque8312 Жыл бұрын

I don’t trust this man’s advice ,

@Mission_Ummah 3 ай бұрын

Murabaha is interest basically, making money from money, the price is fixed and yet they take more. Allah u alam, but i think in islam we just have to lend money to brothers and sisters to help the community to become stronger

@AD-qm3bv 8 ай бұрын

The murabaha is another word for a zero coupon bond…. The interest is the difference between the mark up price and the face value of the house

@M_U_NAS Жыл бұрын

Which Banks offer the Murabaha method? Typically how much more do they add on top of the house list price i.e. 50k, 100k?

@rahaileysigary2041 11 ай бұрын

Any chance you could give an example on the second option? How much would you be paying if you're paying the house AND rent. Is it possible on average wages in the UK

@qasurasultan2817 Жыл бұрын

Short question, brother. You advise to use a LISA Account, but I have the feeling that it is useless since most islamic mortgage alternatives can't even use it, since you can only buy with the bonus if you take out a traditional mortgage. I checked wayhome and they don't allow LISAs, not sure about Gatehouse.

@LifestyleAhsan Ай бұрын

If the buyer is not present, would the bank be interested in the “least” of buying that property?

@Al_Zidni 8 ай бұрын

It sounds the same as any other bank

@user-lp8ro5lj8x 3 ай бұрын

There is no Murabah contracts in the UK. If the Bank of England base rate goes up does that mean Murabaha rate increases in line with base rate?

@abhebhai 2 ай бұрын

From my understanding, these calculations are all done based on current market rate. That's why it doesn't make sense to me of how this makes it halal...

@wappyK4567 7 ай бұрын

Partners 😂 hmmm the bank can take the house if you dont pay? But you cant take the house from the bank if they dont pay as the literally own it 😂

@nsullivan516 5 ай бұрын

Could this be riba in disguise?

@RFALI7 Жыл бұрын

The best thing is buy when you have money other wise be patient

@thebacheafghan Жыл бұрын

Patient is not easy bro.

@Yahiaseraj Жыл бұрын

Is it not so that that the rent in the musharaka mortgage is just replacing the intrest cost? Is it really halal?

@nigeris10000 9 ай бұрын

How is it different from normal bank? You put in interest at the end price

@rumelahmed4539 4 ай бұрын

On what basis are you adding the mark up? If the house is 100k, why would anyone agree to an artificial 50% markup when the market doesnt call for it?

@uguralpkosar 2 ай бұрын

Because money is made to have inflation at the first place.

@slimane6960 Жыл бұрын

How do "Islamic" mortgages compare to normal mortgages? Like what interest rate/duration would be equivalent to the typical Islamic mortgage in the market?

@akhu3034 Жыл бұрын

Diminishing musharaka - problem with that it’s not an equal “partnership” bank doesn’t take and hit on profit/loss it wouldn’t contribute to any costs either

@mubashirsyed8948 Жыл бұрын

Wouldn't the increase or decrease valuation of the property impacting both the bank and the mortgagee in this case suffice?

@beardysuhz6723 Жыл бұрын

The issue people have with the Islamic mortgages is that the bank is protected from house price decreases as they specify in t&c's that they will be paid first and receive their outstanding amount in full (as per my understanding)..on the flip side the banks do forego their right to any increase in valuation voluntarily for the benefit of the homeowner..but the criticism is that this isn't a true profit/loss sharing agreement

@ghulamsarwar687 4 ай бұрын

Who is responsible of the maintenance of the house? The bank or the individual? The bank won't pay a penny...so it's not halal. No such thing, until the banks cobtribute based in their proportional ownership for repairs and maintenance of the house.

@hussnainjavaid8947 Жыл бұрын

What happens if you can’t continue to pay towards the house anymore say after paying 30% towards the cost of the house? (Esp eg in the second option mentioned) Does the bank take complete ownership of the house now and the 30% you paid goes to waste or you remain the 30% owner of the house?

@beardysuhz6723 Жыл бұрын

Generally speaking (and each agreement may be different so always best to clarify with the provider)..in the event of default the provider should ideally try to come up with alternative solutions (e.g. lower payments over longer time, take back some equity)..in the case that it is no longer possible to make payments (e.g. due to job loss, change of circumstances) then the provider may wish to sell the property and they receive their outstanding amount of finance and any remainder should go to you..this is generally the concept as per my understanding and i could be mistaken

@andreiburuiana1525 11 ай бұрын

so...wait a second, isn't it the same thing as charging interest? if my hose price is 100k and with interest I pay a total of 150k trough monthly payments...if the islamic bank make a markup of 50k to my 100k house.....wich I pay trough "rent" isn't it the same thing??????

@nobody99 10 ай бұрын

yes its the Izlamic double shopper fraud to fool muslims

@princeniloy2975 7 ай бұрын

It’s the same thing. They just replace the word interest with rent.

@andreiburuiana1525 7 ай бұрын

@@princeniloy2975 and technically you can't default on your debt..."technically"

@shoaibriz Жыл бұрын

How are these 2 structures halal ?

@LP9006 Жыл бұрын

Who offers the example 1 option?

@ib0007 2 ай бұрын

Both are just diff names of standard bank loans, just given muslim names. It's like just calling David as Daoud alone won't make one Muslim!

@mohammedimohammed4294 2 ай бұрын

The second solution is “acceptable” in principle The first solution is RIBA in disguise When you hear coin coin it is a duck even with an Islamic clothes

@uguralpkosar 2 ай бұрын

Money has time value and this is determined in the conventional market and by the central banks etc. A banknote is a paper zero coupon with zero interest. In these circumstances, if they deter from additional compound interest when the rent is not due, I don't see a problem. Of course this means the rate they use should be higher then that of the conventional rates.

@mhm5319 2 ай бұрын

I see 0 difference . Islamic bank sells on a premium while the traditional bank sells on longevity. The traditional bank doesn’t require anyone to pay off within 30 years . That is , you can get a mortgage today and pay it off tomorrow while with Islamic, you have to respect the contract. Honestly, don’t see any difference

@bentley9trigger861 9 ай бұрын

Bro mentioned no interest. Nobody will give you free money buddy

@Bilalkhan-vk4fd 8 ай бұрын

I really doubt you, last time you said forex is Haram and now you are saying these kind of moretgaes are hilal?

@SaabJJ Жыл бұрын

There is no such thing as Halal mortgage- it’s all sugar coated to seem it’s halal nuts it not

@rawandabdulla5164 Ай бұрын

You made that up. It’s the same same thing as getting a loan from the bank. Actually this type of mortgage is bad, because you are forced to pay interest first and not contributing to your principle until year 10. Which means if you decide to sale your house in a few years your principle will remain the same. Stop this shenanigan in the name of Allah. Shame on you!!

@yaani007 Ай бұрын

I wonder if he is being paid by islamic financial banks to halalify this scam. Fear Allah and dont just take his advice and fall into a major sin. If you have doubts even after doing a thorough research first, its better to leave it!

@mohamedr1164 2 ай бұрын

Islamic and mortgage is antinomic

@haseebahmedd 6 ай бұрын

It is all same. Doesn’t make sense how it is halal. If bank charge 50k markup extra on 100k what is the difference with interest? The goal was to prohibit interest so people will not pay higher money than the loan, islamic bank called it rent and still charge even higher than normal bank? Its all same. All haram