Re: Home financing in Canada: An alternate for ISNA?
Chat Walla, ever heard of Musharka ? If you and lender own a property and only you are living in it, Will you not be asked to pay the portion of rent owned by the lender? And the lender is not one person (in the background) there are three to five persons (theoratically) who are buying bonds/stocks of UM or ISNA (just like you did before borrowing the money for your property) that are contributing in the principal amount for you. So its like sharing the wealth or Musharka concept to help others out. ( I am still not an authority on Sharia law, but this is just my judgement, so just take it as my opinion, nothing more nothing less).
I have heard that Ismailis, Memons and Chinyotti communities in Pakistan have practically (not on paper though) proved this (similar concept of many ppl giving one person) to be the best way to help the needy ppl of their communities to stablish their own businesses. Some communities do it for the development of their own (non-profit) and some do it with profit sharing concept, where the lenders will get back their money on a monthly or anually basis in installments plus a certain portion of the profit that person makes from the business.
Re: Home financing in Canada: An alternate for ISNA?
You know what KISS (keep it simple stupid) To cut the long story short. You need to buy a house worth 200K. You go to a so called islamic financier. Agree to pay him 270K over the period of 20 years. WHat is this 70K coming from? There hasnot been any production. The house has not multiplied. Yes that is interest. And if you have to mortgage why not go to a normal bank why go to somebody who is hiding behind a viel if lies. Now dont tell me any thing about Mushariqa or whatever I knwo about finance more than you do and I know how banks make money for I work for one. So lets accept you can call rose by any name the fragrance would still be the same. In current times there is no interest free economy or business. Its like lookibg for fruit in a meat shop aint happeneing.
Re: Home financing in Canada: An alternate for ISNA?
In short with a 5% fixed mortgage rate you would be paying the same. WHen you co own the house you would share the profit only if you are making money out of it. Since you are not renting it out and using it for personal use it doesnot fall in that category and so you end up paying that extra money as interest and not profit.
Re: Home financing in Canada: An alternate for ISNA?
Who are you fighting with? And why? Am I promoting or defending anything?
Get a life you monkey. It was a news that circled in Muslim community here so I shared it on GS. Whatever I knew about it I answered it when some of the fellows here raised questions. Read the whole damn post again you moron! And no, finance is not my field, neither I have Islamic financing. This was explained to me by a friend who worked on Islamic financing research under Justice Taqi Usmani on a State Bank’s project and later on is hired by HSBC in their Sharia banking. He is a learned person.
Only open your mouth like this when you are addressed directly.
Re: Home financing in Canada: An alternate for ISNA?
So an update on this thread 9 years later:
The owner of the company the opening post is about is now wanted for fraud, being accused by Canadian police of having taken $4.3 million dollars of mortgage payments from his customers and using it to buy gold bars, silver coins and electronics for himself. There is a warrant out for his arrest anywhere he is found to be in Canada.
The business itself collapsed 2 years ago, leaving more than 170 homeowners with massive expenses.