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

[Yazin]

Salam Laikom Brothers,

i have been searching for a long time for halal mortgage, at the end i found two compagnies, Manzil but, huge waiting list, and they just cover ontario, and Qurtuba in Quebec which is the only one for me that offer a halal mortgage, but it is expensive and limited to 300K so you have to get a very large down payment, it is like rent to own, they purchase the house for you, you live on it as occupent, you paie a portion of the rent and a portion of capital, the house will be transfered to you when you finish paying the capital, the money came from the membre contribution, Qurtuba is debt free and financed over then 500 houses within the last 30 years, in 2021, they purchased over then 107 houses.

https://qurtuba.ca/

WS
Good for them making advantage of distressed Muslims that are trying to avoid usury (Riba) but their solution is not helping buyers as I looked at their annual divided, they have averaged over 4.5% since 2013 and they were shy than 4% only in 2021 and still they did better than any Usury (Riba) bank can offer. Where this high return is coming from? it's coming from Muslim buyers through their ethical investment program "I liked the word ETHICAL as all other financial firms are UNETHICAL"
It's so unfortunate that Halal solutions either limited or a total rip off if any available

 

[MustafaOlat1991]

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

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.

As Salam Alaykum brother Yazin! Can I get in touch with you via email please??

 

[Yazin]

Just got an email from Zero
Zero Sponsors: Virtual Fundraiser for Masjid Ibrahim tonight.
What a fares? Trying to polish their scam approach by bringing a well known Muslim characters plus introducing a Youtuber entertainer for after prayer break.
Zero mortgage you are a top scam artist and just wondering when are you starting to provide virtual Halal mortgages

 

[bachben]

Just got an email from Zero
Zero Sponsors: Virtual Fundraiser for Masjid Ibrahim tonight.
What a fares? Trying to polish their scam approach by bringing a well known Muslim characters plus introducing a Youtuber entertainer for after prayer break.
Zero mortgage you are a top scam artist and just wondering when are you starting to provide virtual Halal mortgages

Salamwalikom Brothers,

Does anyone have a solutions for Canadian people?

Barakallahoufikom

 

[sando90]

Pay cash. if you can't afford. Do not buy it!

 

[YVR123]

Salamwalikom Brothers,

Does anyone have a solutions for Canadian people?

Barakallahoufikom

As poster's reply. It's a scam. Don't try to get into zero mortgage....

Solution? Save up cash to buy a house if you cannot apply for normal mortgage. Or keep renting.

 

[sheikhzaid]

Pay cash. if you can't afford. Do not buy it!

fact for whoever cares about aakhirah

 

[xmahmood]

Please consult an authentic sheikh or scholar to bring light on this financial matter. Being a muslim doesn't mean you have to be at loss. Mortgage has an interest base and the financial system doesn't allow you to opt for anything else, spending money on rent because you care about your akhirat is very noble but spending money on rent without exploring your options and understanding your leeway is stupid and unbecoming of a literate muslim.
i know many steadfast muslims who researched for years to justify rent or justify mortgage.. in the end logic prevailed whichever choice they made!
the so called riba free home financing is exploiting, non-flexible. a friend of mine chose Arya financial few years ago, he is still with them.
Again, i would say consult a scholar, engage with riba free home financing companies and then make an educated decision.

 

[bachben]

Please consult an authentic sheikh or scholar to bring light on this financial matter. Being a muslim doesn't mean you have to be at loss. Mortgage has an interest base and the financial system doesn't allow you to opt for anything else, spending money on rent because you care about your akhirat is very noble but spending money on rent without exploring your options and understanding your leeway is stupid and unbecoming of a literate muslim.
i know many steadfast muslims who researched for years to justify rent or justify mortgage.. in the end logic prevailed whichever choice they made!
the so called riba free home financing is exploiting, non-flexible. a friend of mine chose Arya financial few years ago, he is still with them.
Again, i would say consult a scholar, engage with riba free home financing companies and then make an educated decision.

Hi Sir,

Do you know this canadian Bank :
Habib Canadian Bank

 

[Imranhumayun]

I was about to start dealing with Zero Mortgage, but i found this detailed latest Fatwa Against them.

https://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwjq4YCRn_r0AhWmneAKHfH1DxgQFnoECCgQAQ&url=https://daruliftaa.net/wp-content/uploads/2021/04/Zero-Mortgage-Final-Report-and-Fatwa.pdf&usg=AOvVaw1sBZz0IuY62ybdvUTvBdXg

 

[Sabr00]

As Sallam Alaikum. I came across this: https://eqraz.com/our-halal-mortgage

 

[bachben]

As Sallam Alaikum. I came across this: https://eqraz.com/our-halal-mortgage

Does anyone know more about this organization https://eqraz.com/our-halal-mortgage because I stopped my process with Zero mortgage because they don't want to answer my questions. I tried to reach them many many times and When I find someone they told me'' Oh sorry I can't answer to you but someone else will call you back'' but no one called me or respond me by email. It's too ambiguous.

Barakalahoufikom

 

[Yazin]

I got saddened when I go thru the posts here. Our community is stumbled between scam artists, mufties and hefty vague solutions. Muslims have been living in the West for decades with limited resources when it comes to housing and real estate. I would never justify a mortgage as a Halal transaction but with the lack of options and skyrocketing real estate prices especially in Vancouver and Toronto with $133 Billion entered in money laundering or "foreign investment" as the government call it, the options are limited or none. My question to those Mufties and scholars if you have a family and you have a son and a daughter and you live in a two bedroom apartment, do you keep your kids sleep in the same room after the age of 7 and if the answer is yes how about when they reach the puberty age. How about if you have more than two kids and landlords don't even rent you a place. What about when you are old and out of work, how you would afford for the rent. Some Mufties would argue that you can get into a coop housing but even if you are lucky enough to get into a such housing. What kind of neighbors living next to you and how you would raise your kids along with single mothers with their kids living next door. And when your kids are grown up and move out then you have to move out too and let another family to come in.
The best fatwa I heard is "The Western countries are non believers countries and living in a such country is prohabited "HARAM"

 

[Sabr00]

As Sallam Alaekum,

This is an opportunity for Muslims in Alberta:

https://www.halalfinancialcorp.com

Unfortunately, this applies to Muslims willing to reside in Alberta.

I came across this recently and I found it halal to the best of my research.

Kindly make your research too.

Allah knows best.

As Sallam Alaekum.

 

[NOMAD2017]

Salamwalikom Brothers,

Does anyone have a solutions for Canadian people?

Barakallahoufikom

We need more Muslim investors to pool money and help fellow Muslims buy their homes using Musharka or Ijara contracts. Looking at the current rental rates in GTA, I am sure the investors will get a handsome rental income from those homes as a return on investment. I am seriously thinking of starting working on it next year. I have a good job, the down payment and even got pre-approved for the mortgage but despite those fatwas from Western Islamic scholars, I am still unable to convince myself that it's okay to buy just one home using conventional mortgage.