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Canada to Introduce Halal Mortgages, Expanding Housing Access for Muslim Communities
Canadian government unveils plan for halal mortgages, providing alternative financing options and promoting homeownership diversity.
ND
by News Desk
2024-04-18
Canada to Introduce Halal Mortgages, Expanding Housing Access for Muslim Communities

the Canadian government has announced plans to introduce halal mortgages, catering to the specific needs of Muslim communities and promoting diversity in the housing market. The initiative, set to be included in the federal budget 2024, aims to expand access to financing alternatives and support homeownership aspirations among Muslim Canadians.

 

The introduction of halal mortgages reflects the government's commitment to inclusivity and recognizing the unique requirements of diverse communities. By providing alternative financing options that adhere to Sharia principles, the government seeks to empower Muslim Canadians and facilitate their participation in the housing market.

 

The federal budget 2024 outlines the government's intention to engage with financial services providers and various communities to understand how federal policies can be improved to accommodate Canadians seeking homes. Consultations, which commenced in March 2024, will explore changes in the tax treatment of these products and establish a regulatory sandbox for financial service providers.

 

Halal mortgages, which operate on payment structures excluding interest, offer viable alternatives to traditional interest-based loans. Three common types of halal mortgages include ijara, Musharaka, and Murabaha, each incorporating principles of Sharia finance while facilitating homeownership.

 

Despite the demand for halal mortgages, major Canadian banks currently do not offer such products, leaving many Muslims reliant on smaller firms for investment and homeownership opportunities. The government's initiative aims to address this gap by exploring measures to expand mortgage policies and ensure robust consumer protections.

 

While halal mortgages may come at a higher cost compared to traditional loans, the government aims to strike a balance between facilitating access to alternative financing options and safeguarding consumer interests. Details of the plan are expected to be announced in the fall, following comprehensive consultations and engagement with stakeholders.

 

The introduction of halal mortgages represents a significant step towards fostering inclusivity and diversity in Canada's housing market, aligning with the government's commitment to supporting the aspirations of all Canadians for homeownership and financial stability.

 
Tagged:

Canada

Diversity

HalalMortgages

HousingAccess

Inclusivity
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