Canada’s Trudeau to introduce ‘halal mortgage’ for Muslims

The Liberal government of Canada plans to introduce “halal mortgages” in its 2024 federal budget as a way to increase access to home ownership, Hindustan Times reported yesterday.

The plan mentions the creation of “alternative financing products, including halal mortgages” as a means to “enable Muslim Canadians, and other diverse communities, to further participate in the housing market.”

Sharia-compliant mortgages include payment structures that take interest out of the equation. There are three common types of halal mortgages: Ijara, Musharaka, and Murabaha.

Canada’s big banks do not currently provide halal mortgages, which the Liberal government hopes to change.