Federal government plans to test 'halal mortgages'

 

The federal government plans to test new measures to expand access to alternative financing products such as 'halal mortgages'. The Liberal government has already begun consultations with financial service providers and various communities. Officials say this is to help understand how federal policies can better support the needs of all Canadians looking to buy a home.

Some financial institutions in Canada already offer Islamic-compliant mortgages, although Canada's Big Five banks do not currently offer them. Profits earned through usury are considered unjust in the Islamic faith.

Judaism and Christianity also consider usury a sin. However, financial institutions operating in Islamic countries are characterized by offering mortgages and lending products that avoid traditional interest payments.