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
