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How does it work if I take out a mortgage?
Islamic mortgages, or house purchase plans (HPPs) can involve ijara, where you are technically leasing the property from the bank, or diminishing Musharaka, where you buy in partnership with the bank and your monthly repayments gradually buy it out. As with a standard mortgage you will usually need a deposit, and you will need to have the house valued before you enter into the arrangement.
You will also be able to fix the amount you pay each month if you wish – for example, the Islamic Bank of Britain offers a fixed rental rate of 3.79% to homebuyers with at least 35% to put down as a deposit, and 4.19% for those with a 20% deposit – both rates are fixed until 31 December 2015. Source
originally posted by: ChesterJohn
on the surface maybe. You cannot pay off a 30 year mortgage in full 10 years into the loan without being penalized big time.
I like the fact that banks and financial institutions are willing to make an effort to help people by customizing deals, so why not offer everyone a customized deal on purchasing a house or starting a business, not just one group based on their religion.