Halal mortgages: What are the pros and cons? [Video]

While not yet common in Canada, halal mortgages have been available for those in the country who seek loans that abide by the Muslim faith to buy homes.

Halal mortgages have more broadly become a subject of conversation after being recently highlighted in the 2024 spring federal budget.

More offerings for halal mortgages could become available as interest grows and the government looks into expanding access for these types of alternative financing products.

“This could include changes in the tax treatment of these products or a new regulatory sandbox for financial service providers, while ensuring adequate consumer protections are in place,” the federal government said in the budget document, noting that it will provide an update in the 2024 Fall Economic Statement.

In addition, more Muslims and other potential homeowners are looking at this option amid inflation and pandemic-era mortgages coming up for renewal.

Here’s what mortgage experts say those considering “no-interest” halal mortgages should know.