Frequently Asked Questions

What are the eligibility criteria?

Our clients are required to contribute a minimum 20% of the market value, or purchase price, of the halal financed house, whichever is lower. Canadian Halal Financial Corporation finances up to 80%. Furthermore, our clients must have a good credit history and sufficient income to meet the monthly payment obligations.

What is the profit rate?

As a Shariah Law compliant financing corporation, we do not calculate our cost, or profit, based on interest rates. As such, we express our cost and profit by providing our clients with an amount of their monthly payments, which includes all costs and profit.

Is there a minimum 'rental' amount?

Our clients are not renters. Utilizing the Musharakah agreement, Canadian Halal Financial Corporation clients have full ownership rights and only our client's name is registered on the title and there are no third-party incumbrancers, such as banks, involved. Our clients can renovate, rent or sell their houses at any time and their only obligation to the Canadian Halal Financial Corporation is to fulfil the obligations contained in the finance contract.

How long does it take to process an application?

At Canadian Halal Financial Corporation, we process applications within 10 business days and are typically funded within 30 days.

Do you have financing limits?

No, at Canadian Halal Financial Corporation, we will fund any amount that you are qualified for.

Do you have waiting lists for funding?

No, Canadian Halal Financial Corporation will fund your purchase as soon as you are qualified.

Are there any side agreements entered into by Canadian Halal Financial Corporation?

No, we are fully transparent and follow the rules imposed by our Fatwas and auditors.

Where does Canadian Halal Financial Corporation get money?

Canadian Halal Financial Corporation utilizes its own resources for halal financing of our clients' houses. Our clients enter into a Shariah Law compliant finance contract only with our corporation (no third parties).

Do you have Fatwas?

Yes. Al Azhar developed an onerous process to govern Islamic transactions.

The Canadian Halal Financial Corporation, in developing our Shariah Law compliant contracts, was guided by an international team of Islamic Finance experts and Imams who oversaw the process, along with Canadian lawyers.

Our fatwa is posted on our website.

To maintain the highest level of Shariah-compliance, Canadian Halal Financial Corporation is contracting an independent AAOIFI auditing protocol and additional Certificates of Compliance are being prepared.

Can I make extra payments?

Yes, our Sharia Law compliant Musharakah agreement allows for additional payments. Without any penalties, clients are allowed to pay each year 20% of the financed amount above their monthly payments. Every five years, clients are allowed to pay any amount, up to 100% of the outstanding amount.

Our Sharia Law compliant Murabaha agreement does not allow for any additional payments.

Who will benefit from the appreciation of the property?

You will. You are the owner of the property with us as a diminishing partner. You will keep all of the profit from the property value increase.

Why is Halal financing more expensive?

We don’t have access to the low cost money provided by haram conventional banks. We minimize costs to the degree possible and pass on savings to our clients.

What if I can’t make my payments?

We understand that people may experience an inability to make their halal financing payment. It is important for us that you are successful in purchasing your home. Our practice is to work with you to help you resolve this problem and we have established a process where you can call on the Fatwa Committee or your own Imam to attempt to mediate the situation.

Is there any risk using Canadian Halal Financial Corporation?

No. You are the owner of the house and your only obligation is to repay the borrowed amount. You can sell your home at any time and keep the profit.