Best Islamic Home Loan

Islamic home financing comes under the Islamic banking system and follows Shariah principles and Islamic-based economics. Islamic principles dictate that money lending (interest-based) as well as investing in businesses that are considered haram (unlawful) are prohibited.

• How does Islamic home financing work?

  Under Islamic home financing, banks are required to buy an asset (i.e. property) from the seller and sell it back to the buyer (you) with profit. The buyer will be allowed to pay for the property in instalments.

• How is Islamic home financing different from conventional home loans?

  In a conventional home loan product, banks earn interest from the borrower. In contrast, Islamic home financing products are not interest-based.
  Refer to this table below.

  For more information on Islamic home financing, read our guide here.