Muslim "Unfriendly" Mortgages?

Some Muslims are calling “Sharia-compliant” mortgages “fraud.”  Critics say they are nothing more than mortgages with front-loaded interest.  Interest is prohibited in Islam.

Sharia-compliant mortgages are also up to 1-3% more expensive than conventional mortgages in Canada, according to the Financial Post. In the United States, they cost only 0.4%-1% more.

That said, there is apparently high demand for such products.  Bank of Nova Scotia and TD are both considering offering them and UM Financial, a Muslim lender from Toronto, reportedly has a 5000 person waiting list.

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Side Note:  Here is an example of a “Sharia” mortgage calculator:  Musharakah Calculator.

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