Appeal of Islamic mortgages extending after financial crisis

Fri, 20 Jan 2012
The appeal of Islamic mortgages and other finance of this type has extended in the aftermath of the global economic downturn, it has been suggested.

Walid Hejazi, associate professor of international business in the Rotman School of Management at the University of Toronto - which was established in 1827 - explained the options are now being presented to a wider range of clients, regardless of their religion, Macleans reports.

The industry expert noted this form of finance is attractive to many because it is based on banking practices that are somewhat conservative and low-risk.

Mr Hejazi added it is important to note Islmaic or sharia-compliant financial products are not solely available to Muslims and can be used by everyone.

"There are five key elements that must be avoided in Islamic finance: interest, speculation, uncertainty, unjust enrichment/unfair exploitation and unethical purpose," he pointed out.

Embracing Islamic mortgages may therefore be a wise move for nations around the world, especially as a recent study prepared for the Canada Mortgage and Housing Corporation showed demand for Islamic mortgages in Canada is outpacing supply at present.
Salaam-u-Allaikum
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