{"id":2597,"date":"2022-01-06T10:13:16","date_gmt":"2022-01-06T10:13:16","guid":{"rendered":"https:\/\/www.compare4benefit.com\/blog\/?p=2597"},"modified":"2024-05-11T09:20:26","modified_gmt":"2024-05-11T09:20:26","slug":"islamic-mortgage-vs-conventional-mortgage-explained","status":"publish","type":"post","link":"https:\/\/www.compare4benefit.com\/blog\/islamic-mortgage-vs-conventional-mortgage-explained\/","title":{"rendered":"Islamic Mortgage vs Conventional Mortgage Explained"},"content":{"rendered":"<div style=\"display:none\" class=\"fm-form-container fm-theme15\"><div id=\"fm-pages9\" class=\"fm-pages wdform_page_navigation \" show_title=\"\" show_numbers=\"1\" type=\"none\"><\/div><form name=\"form9\" action=\"\/blog\/wp-json\/wp\/v2\/posts\/2597\" method=\"post\" id=\"form9\" class=\"fm-form form9  \" enctype=\"multipart\/form-data\"><input type=\"hidden\" id=\"fm_page_id9\" value=\"2597\" name=\"fm_page_id9\" \/><input type=\"hidden\" id=\"fm_current_post_type9\" 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class=\"wiz_hdr_txt\" style=\"font-size: 20px;font-weight: bold;color: #337799;font-family: sans-serif;cursor: default;line-height: 30px;padding: 0px 5px;margin-top: 0px;margin-bottom: 0px\" data-lines=\"2\">Find The Best Mortgage, In Just A Few Simple Steps!<\/b>          <\/div>        <\/div><\/div><\/div><div class=\"wdform-page-and-images fm-form-builder\"><div id=\"9form_view1\" class=\"wdform_page\" page_title=\"Untitled page\" next_title=\"Next\" next_type=\"text\" next_class=\"wdform-page-button\" next_checkable=\"true\" previous_title=\"Previous\" previous_type=\"text\" previous_class=\"wdform-page-button\" previous_checkable=\"false\"><div class=\"wdform_section fm-col-1\"><div class=\"wdform_column\"><div wdid=\"6\" class=\"wdform_row\" style=\"position: relative; left: 0px; top: 0px;\"><div type=\"type_text\" class=\"wdform-field wd-width-100 wd-flex wd-flex-row fm-type_text\" ><div class=\"wdform-label-section wd-width-30  wd-flex-row wd-align-items-center\">    <label  for=\"wdform_6_element9\" class=\"wdform-label\">Your Name<\/label><span class=\"wdform-required\">*<\/span><\/div><div class=\"wdform-element-section wd-flex  wd-flex-row wd-align-items-center wd-width-70\" ><input type=\"text\"                           class=\"wd-width-100\"                           id=\"wdform_6_element9\"                           name=\"wdform_6_element9\"                           value=\"\"                           data-value=\"\"                           title=\"\"                           placeholder=\"\"                                                       attribute=value \/><\/div><\/div><\/div><\/div><div class=\"wdform_column\"><div wdid=\"12\" class=\"wdform_row\" style=\"position: relative; left: 0px; top: 0px;\"><div type=\"type_country\" class=\"wdform-field wd-width-100 wd-flex wd-flex-row fm-type_country\" ><div class=\"wdform-label-section wd-width-30 wdform_select wd-flex-row\">    <label  for=\"wdform_12_element9\" class=\"wdform-label\">Nationality<\/label><span class=\"wdform-required\">*<\/span><\/div><div class=\"wdform-element-section wd-flex wdform_select wd-flex-row wd-width-70\" ><select class=\"wd-width-100\" id=\"wdform_12_element9\" name=\"wdform_12_element9\" ><option value=\"\" ><\/option><option value=\"Afghanistan\" >Afghanistan<\/option><option value=\"Albania\" >Albania<\/option><option value=\"Algeria\" >Algeria<\/option><option value=\"Andorra\" >Andorra<\/option><option value=\"Angola\" >Angola<\/option><option value=\"Antigua and Barbuda\" >Antigua and Barbuda<\/option><option value=\"Argentina\" >Argentina<\/option><option value=\"Armenia\" >Armenia<\/option><option value=\"Australia\" >Australia<\/option><option value=\"Austria\" >Austria<\/option><option value=\"Azerbaijan\" >Azerbaijan<\/option><option value=\"Bahamas\" >Bahamas<\/option><option value=\"Bahrain\" >Bahrain<\/option><option value=\"Bangladesh\" >Bangladesh<\/option><option value=\"Barbados\" >Barbados<\/option><option value=\"Belarus\" >Belarus<\/option><option value=\"Belgium\" >Belgium<\/option><option value=\"Belize\" >Belize<\/option><option value=\"Benin\" >Benin<\/option><option value=\"Bhutan\" >Bhutan<\/option><option value=\"Bolivia\" >Bolivia<\/option><option value=\"Bosnia and Herzegovina\" >Bosnia and Herzegovina<\/option><option value=\"Botswana\" >Botswana<\/option><option value=\"Brazil\" >Brazil<\/option><option value=\"Brunei\" >Brunei<\/option><option value=\"Bulgaria\" >Bulgaria<\/option><option value=\"Burkina Faso\" >Burkina Faso<\/option><option value=\"Burundi\" >Burundi<\/option><option value=\"Cambodia\" >Cambodia<\/option><option value=\"Cameroon\" >Cameroon<\/option><option value=\"Canada\" >Canada<\/option><option value=\"Cape Verde\" >Cape Verde<\/option><option value=\"Central African Republic\" >Central African Republic<\/option><option value=\"Chad\" >Chad<\/option><option value=\"Chile\" >Chile<\/option><option value=\"China\" >China<\/option><option value=\"Colombia\" >Colombia<\/option><option value=\"Comoros\" >Comoros<\/option><option value=\"Congo\" >Congo<\/option><option value=\"Congo (Brazzaville)\" >Congo (Brazzaville)<\/option><option value=\"Costa Rica\" >Costa Rica<\/option><option value=\"Cote d&#039;Ivoire\" >Cote d&#039;Ivoire<\/option><option value=\"Croatia\" >Croatia<\/option><option value=\"Cuba\" >Cuba<\/option><option value=\"Curacao\" >Curacao<\/option><option value=\"Cyprus\" >Cyprus<\/option><option value=\"Czech Republic\" >Czech Republic<\/option><option value=\"Denmark\" >Denmark<\/option><option value=\"Djibouti\" >Djibouti<\/option><option value=\"Dominica\" >Dominica<\/option><option value=\"Dominican Republic\" >Dominican Republic<\/option><option value=\"East Timor (Timor Timur)\" >East Timor (Timor Timur)<\/option><option value=\"Ecuador\" >Ecuador<\/option><option value=\"Egypt\" >Egypt<\/option><option value=\"El Salvador\" >El Salvador<\/option><option value=\"Equatorial Guinea\" >Equatorial Guinea<\/option><option value=\"Eritrea\" >Eritrea<\/option><option value=\"Estonia\" >Estonia<\/option><option value=\"Eswatini\" >Eswatini<\/option><option value=\"Ethiopia\" >Ethiopia<\/option><option value=\"Fiji\" >Fiji<\/option><option value=\"Finland\" >Finland<\/option><option value=\"France\" >France<\/option><option value=\"Gabon\" >Gabon<\/option><option value=\"Gambia, The\" >Gambia, The<\/option><option value=\"Georgia\" >Georgia<\/option><option value=\"Germany\" >Germany<\/option><option value=\"Ghana\" >Ghana<\/option><option value=\"Greece\" >Greece<\/option><option value=\"Grenada\" >Grenada<\/option><option value=\"Guatemala\" >Guatemala<\/option><option value=\"Guinea\" >Guinea<\/option><option value=\"Guinea-Bissau\" >Guinea-Bissau<\/option><option value=\"Guyana\" >Guyana<\/option><option value=\"Haiti\" >Haiti<\/option><option value=\"Honduras\" >Honduras<\/option><option value=\"Hong Kong\" >Hong Kong<\/option><option value=\"Hungary\" >Hungary<\/option><option value=\"Iceland\" >Iceland<\/option><option value=\"India\" >India<\/option><option value=\"Indonesia\" >Indonesia<\/option><option value=\"Iran\" >Iran<\/option><option value=\"Iraq\" >Iraq<\/option><option value=\"Ireland\" >Ireland<\/option><option value=\"Israel\" >Israel<\/option><option value=\"Italy\" >Italy<\/option><option value=\"Jamaica\" >Jamaica<\/option><option value=\"Japan\" >Japan<\/option><option value=\"Jordan\" >Jordan<\/option><option value=\"Kazakhstan\" >Kazakhstan<\/option><option value=\"Kenya\" >Kenya<\/option><option value=\"Kiribati\" >Kiribati<\/option><option value=\"Korea, North\" >Korea, North<\/option><option value=\"Korea, South\" >Korea, South<\/option><option value=\"Kuwait\" >Kuwait<\/option><option value=\"Kyrgyzstan\" >Kyrgyzstan<\/option><option value=\"Laos\" >Laos<\/option><option value=\"Latvia\" >Latvia<\/option><option value=\"Lebanon\" >Lebanon<\/option><option value=\"Lesotho\" >Lesotho<\/option><option value=\"Liberia\" >Liberia<\/option><option value=\"Libya\" >Libya<\/option><option value=\"Liechtenstein\" >Liechtenstein<\/option><option value=\"Lithuania\" >Lithuania<\/option><option value=\"Luxembourg\" >Luxembourg<\/option><option value=\"Madagascar\" >Madagascar<\/option><option value=\"Malawi\" >Malawi<\/option><option value=\"Malaysia\" >Malaysia<\/option><option value=\"Maldives\" >Maldives<\/option><option value=\"Mali\" >Mali<\/option><option value=\"Malta\" >Malta<\/option><option value=\"Marshall Islands\" >Marshall Islands<\/option><option value=\"Mauritania\" >Mauritania<\/option><option value=\"Mauritius\" >Mauritius<\/option><option value=\"Mexico\" >Mexico<\/option><option value=\"Micronesia\" >Micronesia<\/option><option value=\"Moldova\" >Moldova<\/option><option value=\"Monaco\" >Monaco<\/option><option value=\"Mongolia\" >Mongolia<\/option><option value=\"Montenegro\" >Montenegro<\/option><option value=\"Morocco\" >Morocco<\/option><option value=\"Mozambique\" >Mozambique<\/option><option value=\"Myanmar\" >Myanmar<\/option><option value=\"Namibia\" >Namibia<\/option><option value=\"Nauru\" >Nauru<\/option><option value=\"Nepal\" >Nepal<\/option><option value=\"Netherlands\" >Netherlands<\/option><option value=\"New Zealand\" >New Zealand<\/option><option value=\"Nicaragua\" >Nicaragua<\/option><option value=\"Niger\" >Niger<\/option><option value=\"Nigeria\" >Nigeria<\/option><option value=\"North Macedonia\" >North Macedonia<\/option><option value=\"Norway\" >Norway<\/option><option value=\"Oman\" >Oman<\/option><option value=\"Pakistan\" >Pakistan<\/option><option value=\"Palau\" >Palau<\/option><option value=\"Palestine\" >Palestine<\/option><option value=\"Panama\" >Panama<\/option><option value=\"Papua New Guinea\" >Papua New Guinea<\/option><option value=\"Paraguay\" >Paraguay<\/option><option value=\"Peru\" >Peru<\/option><option value=\"Philippines\" >Philippines<\/option><option value=\"Poland\" >Poland<\/option><option value=\"Portugal\" >Portugal<\/option><option value=\"Puerto Rico\" >Puerto Rico<\/option><option value=\"Qatar\" >Qatar<\/option><option value=\"Romania\" >Romania<\/option><option value=\"Russia\" >Russia<\/option><option value=\"Rwanda\" >Rwanda<\/option><option value=\"Saint Kitts and Nevis\" >Saint Kitts and Nevis<\/option><option value=\"Saint Lucia\" >Saint Lucia<\/option><option value=\"Saint Vincent\" >Saint Vincent<\/option><option value=\"Samoa\" >Samoa<\/option><option value=\"San Marino\" >San Marino<\/option><option value=\"Sao Tome and Principe\" >Sao Tome and Principe<\/option><option value=\"Saudi Arabia\" >Saudi Arabia<\/option><option value=\"Senegal\" >Senegal<\/option><option value=\"Serbia\" >Serbia<\/option><option value=\"Seychelles\" >Seychelles<\/option><option value=\"Sierra Leone\" >Sierra Leone<\/option><option value=\"Singapore\" >Singapore<\/option><option value=\"Slovakia\" >Slovakia<\/option><option value=\"Slovenia\" >Slovenia<\/option><option value=\"Solomon Islands\" >Solomon Islands<\/option><option value=\"Somalia\" >Somalia<\/option><option value=\"South Africa\" >South Africa<\/option><option value=\"South Sudan\" >South Sudan<\/option><option value=\"Spain\" >Spain<\/option><option value=\"Sri Lanka\" >Sri Lanka<\/option><option value=\"Sudan\" >Sudan<\/option><option value=\"Suriname\" >Suriname<\/option><option value=\"Sweden\" >Sweden<\/option><option value=\"Switzerland\" >Switzerland<\/option><option value=\"Syria\" >Syria<\/option><option value=\"Taiwan\" >Taiwan<\/option><option value=\"Tajikistan\" >Tajikistan<\/option><option value=\"Tanzania\" >Tanzania<\/option><option value=\"Thailand\" >Thailand<\/option><option value=\"Togo\" >Togo<\/option><option value=\"Tonga\" >Tonga<\/option><option value=\"Trinidad and Tobago\" >Trinidad and Tobago<\/option><option value=\"Tunisia\" >Tunisia<\/option><option value=\"Turkey\" >Turkey<\/option><option value=\"Turkmenistan\" >Turkmenistan<\/option><option value=\"Tuvalu\" >Tuvalu<\/option><option value=\"Uganda\" >Uganda<\/option><option value=\"Ukraine\" >Ukraine<\/option><option value=\"United Arab Emirates\" >United Arab Emirates<\/option><option value=\"United Kingdom\" >United Kingdom<\/option><option value=\"United States\" >United States<\/option><option value=\"Uruguay\" >Uruguay<\/option><option value=\"Uzbekistan\" >Uzbekistan<\/option><option value=\"Vanuatu\" >Vanuatu<\/option><option value=\"Vatican City\" >Vatican City<\/option><option value=\"Venezuela\" >Venezuela<\/option><option value=\"Vietnam\" >Vietnam<\/option><option value=\"Wales\" >Wales<\/option><option value=\"Yemen\" >Yemen<\/option><option value=\"Zambia\" >Zambia<\/option><option value=\"Zimbabwe\" >Zimbabwe<\/option><\/select><\/div><\/div><\/div><\/div><div class=\"wdform_column\"><div wdid=\"4\" class=\"wdform_row\" style=\"position: relative; left: 0px; top: 0px;\"><div type=\"type_phone_new\" class=\"wdform-field wd-width-100 wd-flex wd-flex-row fm-type_phone_new\" ><div class=\"wdform-label-section wd-width-30 \">    <label  for=\"wdform_4_element9\" class=\"wdform-label\">Phone<\/label><span class=\"wdform-required\">*<\/span><\/div><div class=\"wdform-element-section wd-flex  wd-width-70\" ><input type=\"text\"                       class=\"wd-width-100\"                       id=\"wdform_4_element9\"                       name=\"wdform_4_element9\"                       value=\"\"                       data-value=\"\"                       placeholder=\"\"  attribute=value \/><\/div><\/div><\/div><\/div><div class=\"wdform_column\"><div wdid=\"10\" class=\"wdform_row\" style=\"position: relative; left: 0px; top: 0px;\"><div type=\"type_text\" class=\"wdform-field wd-width-100 wd-flex wd-flex-row fm-type_text\" ><div class=\"wdform-label-section wd-width-30  wd-flex-row wd-align-items-center\">    <label  for=\"wdform_10_element9\" class=\"wdform-label\">Email id<\/label><span class=\"wdform-required\">*<\/span><\/div><div class=\"wdform-element-section wd-flex  wd-flex-row wd-align-items-center wd-width-70\" ><input type=\"text\"                           class=\"wd-width-100\"                           id=\"wdform_10_element9\"                           name=\"wdform_10_element9\"                           value=\"\"                           data-value=\"\"                           title=\"\"                           placeholder=\"\"                                                       \/><\/div><\/div><\/div><\/div><div class=\"wdform_column\"><div wdid=\"2\" class=\"wdform_row\" style=\"position: relative; left: 0px; top: 0px;\"><div type=\"type_own_select\" class=\"wdform-field wd-width-100 wd-flex wd-flex-row fm-type_own_select\" ><div class=\"wdform-label-section wd-width-30 wdform_select wd-flex-row\">    <label  for=\"wdform_2_element9\" class=\"wdform-label\">Monthly Income<\/label><span class=\"wdform-required\">*<\/span><\/div><div class=\"wdform-element-section wd-flex wdform_select wd-flex-row wd-width-70\" ><select class=\"wd-width-100\" id=\"wdform_2_element9\" name=\"wdform_2_element9\" ><option value=\"\" selected=\"selected\">Select value<\/option><option value=\"8000 AED -10000 AED\" >8000 AED -10000 AED<\/option><option value=\"10000 AED -15000 AED\" >10000 AED -15000 AED<\/option><option value=\"15000 AED - 20000 AED\" >15000 AED - 20000 AED<\/option><option value=\" 20000 AED - 30000 AED\" > 20000 AED - 30000 AED<\/option><option value=\"Above 30000 AED\" >Above 30000 AED<\/option><\/select><\/div><\/div><\/div><\/div><div class=\"wdform_column\"><div wdid=\"9\" class=\"wdform_row\"><div type=\"type_own_select\" class=\"wdform-field wd-width-100 wd-flex wd-flex-row fm-type_own_select\" ><div class=\"wdform-label-section wd-width-30 wdform_select wd-flex-row\">    <label  for=\"wdform_9_element9\" class=\"wdform-label\">Finance Amount Required<\/label><span class=\"wdform-required\">*<\/span><\/div><div class=\"wdform-element-section wd-flex wdform_select wd-flex-row wd-width-70\" ><select class=\"wd-width-100\" id=\"wdform_9_element9\" name=\"wdform_9_element9\" ><option value=\"Select value\" selected=\"selected\">Select value<\/option><option value=\"Less than 1 Million AED\" >Less than 1 Million AED<\/option><option value=\"1 Million to 2 Million AED\" >1 Million to 2 Million AED<\/option><option value=\"2 Million to 5 Million AED\" >2 Million to 5 Million AED<\/option><option value=\"Above 5 Million\" >Above 5 Million<\/option><\/select><\/div><\/div><\/div><\/div><div class=\"wdform_column\"><div wdid=\"11\" class=\"wdform_row\" style=\"position: relative; left: 0px; top: 0px;\"><div type=\"type_captcha\" class=\"wdform-field wd-width-100 wd-flex wd-flex-row fm-type_captcha\" ><div class=\"wdform-label-section wd-width-30  wd-flex-row wd-align-items-center\">    <label  for=\"wd_captcha_input9\" class=\"wdform-label\">Enter Captcha<\/label><\/div><div class=\"wdform-element-section wd-flex  wd-flex-row wd-align-items-center wd-width-70\" ><img decoding=\"async\" type=\"captcha\"                           digit=\"7\"                           src=\" https:\/\/www.compare4benefit.com\/blog\/wp-admin\/admin-ajax.php?action=formmakerwdcaptcha&digit=7&i=9\"                           id=\"wd_captcha9\"                           class=\"captcha_img wd-hidden\"                            \/><div class=\"captcha_refresh\" id=\"_element_refresh9\" ><\/div><input type=\"text\"                              class=\"captcha_input\"                              id=\"wd_captcha_input9\"                              name=\"captcha_input\"                              style=\"width: 90px;\"                               \/><\/div><\/div><\/div><\/div><div class=\"wdform_column\"><div wdid=\"7\" class=\"wdform_row\" style=\"position: relative; left: 0px; top: 0px;\"><div type=\"type_submit_reset\" class=\"wdform-field wd-width-100 wd-flex wd-flex-column fm-type_submit_reset\" ><div class=\"wdform-element-section wd-flex  wd-flex-row wd-justify-content-center wd-width-100\" ><button  type=\"button\" class=\"button-submit\" onclick=\"fm_submit_form('9');\"  data-ajax=\"0\"><span class=\"fm-submit-loading spinner fm-ico-spinner\"><\/span>                                                                    Get a Free Call<\/button><button  type=\"button\" class=\"button-reset wd-hidden\" onclick=\"fm_reset_form(9);\" >Reset<\/button><\/div><\/div><\/div><\/div><\/div><div valign=\"top\" class=\"wdform_footer wd-width-100\"><div class=\"wd-width-100\"><div class=\"wd-width-100 wd-table\" style=\"padding-top:10px;\"><div class=\"wd-table-group\"><div id=\"9page_nav1\" class=\"wd-table-row\"><\/div><\/div><\/div><\/div><\/div><\/div><\/div><div class=\"wdform_preload\"><\/div><input type=\"hidden\" name=\"fm-current-page\" value=\"https:\/\/www.compare4benefit.com\/blog\/wp-json\/wp\/v2\/posts\/2597\" \/><\/form><\/div>\n<p><span style=\"font-weight: 400;\">There is a general belief that <strong><span style=\"color: #ff00ff;\"><a style=\"color: #ff00ff;\" href=\"https:\/\/www.compare4benefit.com\/all-loan\/islamic-mortgage\">Islamic mortgages<\/a><\/span><\/strong> are better than <strong><span style=\"color: #ff00ff;\"><a style=\"color: #ff00ff;\" href=\"https:\/\/www.compare4benefit.com\/all-loan\/mortgage-home-loan\">conventional mortgages<\/a><\/span><\/strong> as there isn\u00e2\u20ac\u2122t any interest rate. This is what makes even the non-Muslims interested in this system. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">But before you go ahead and apply for Islamic mortgage, here is a bit of insight to help you understand this mortgage and its points of difference from conventional mortgage.<\/span><\/p>\n<h2><b>Defining conventional mortgages<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In the case of conventional mortgages, financial institutions like banks lend money for buying new homes and they charge a certain interest on that loan. Conventional mortgages are made of the amount borrowed (the principal) and the interest charged. <\/span><\/p>\n<p><span style=\"font-weight: 400;\">As with most mortgages, the interest and principal get paid off monthly within twenty-five years, which is the reason why they\u00e2\u20ac\u2122re termed as repayment mortgages.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At the start, most of the payments made by a borrower are focused at paying the interest, while a small part goes in reducing that principal amount. When the term end comes near, this process switches such that more amount gets paid off from the actual loan every month.<\/span><\/p>\n<p><strong>Related : <a href=\"https:\/\/www.compare4benefit.com\/blog\/best-mortgage-rates-in-uae-2018-money-clinic\/\"><span style=\"color: #ff00ff;\"><em>Best Mortgage Rates in UAE 2024<\/em><\/span><\/a><\/strong><\/p>\n<h2><b>Defining Islamic mortgages\u00c2\u00a0<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Islamic home loans work in a different manner as an Islamic financial institution is prohibited to charge interest. A number of Muslim financing models exist, though Ijarah and Murabaha are the key models utilized for home loans.\u00a0<\/span><\/p>\n<h3><b>Understanding Riba free\u00c2\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">As per the legal jurisprudence of Islam, lending money to earn profits from an investment activity, such as real estate financing isn\u00e2\u20ac\u2122t an acceptable way of commerce. In simple words, interest (or Riba) is completely prohibited.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">An obvious cause is that, a loan in Islam is supposed to be a kind of charity \u00e2\u20ac\u201c a chance for a person to aid another who is facing a tough situation. The lender can only expect to receive the amount they lend out. Loans aren\u00e2\u20ac\u2122t the way to earn money.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Islam also prohibits buying or selling anything that has zero intrinsic value. Loans with interests are basically paying for money using more money. Since money contains zero intrinsic value, it cannot be bought.\u00a0<\/span><\/p>\n<h3><b>Murabaha model of financing<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In this case, the bank buys a property on the customer\u00e2\u20ac\u2122s behalf and resells that to them again at a profit. The buyer uses monthly installments to pay the money back to the bank.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Muslim banks require collateral for protecting themselves against their buyers failing to make repayments. Thus, the property remains bank-registered until the mortgage payments are fulfilled, though there are a handful of banks that include the name of the tenant on the title deed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Islamic mortgages have an advantage that borrowers need to pay no additional interests for late payments, although banks might charge fixed fees.<\/span><\/p>\n<h3><b>Ijarah model of financing\u00c2\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The Ijarah model of Islamic finance is basically a purchase and lease-back arrangement. The model is helpful when you are purchasing a property off plans because no payments have to be made until a property gets completed.<\/span><\/p>\n<p><b>The endnote<\/b><span style=\"font-weight: 400;\">\u00c2\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Hopefully, this clears up the differences between Islamic mortgages and conventional mortgages. You now have the basic idea to decide which path to choose.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There is a general belief that Islamic mortgages are better than conventional mortgages as there isn\u00e2\u20ac\u2122t any interest rate. This is what makes even the non-Muslims interested in this system. But before you go ahead and apply for Islamic mortgage, here is a bit of insight to help you understand this mortgage and its points [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":2602,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"two_page_speed":[],"footnotes":""},"categories":[7],"tags":[],"class_list":{"0":"post-2597","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-uae-mortgage-guide"},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.compare4benefit.com\/blog\/wp-json\/wp\/v2\/posts\/2597","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.compare4benefit.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.compare4benefit.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.compare4benefit.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.compare4benefit.com\/blog\/wp-json\/wp\/v2\/comments?post=2597"}],"version-history":[{"count":2,"href":"https:\/\/www.compare4benefit.com\/blog\/wp-json\/wp\/v2\/posts\/2597\/revisions"}],"predecessor-version":[{"id":3556,"href":"https:\/\/www.compare4benefit.com\/blog\/wp-json\/wp\/v2\/posts\/2597\/revisions\/3556"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.compare4benefit.com\/blog\/wp-json\/wp\/v2\/media\/2602"}],"wp:attachment":[{"href":"https:\/\/www.compare4benefit.com\/blog\/wp-json\/wp\/v2\/media?parent=2597"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.compare4benefit.com\/blog\/wp-json\/wp\/v2\/categories?post=2597"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.compare4benefit.com\/blog\/wp-json\/wp\/v2\/tags?post=2597"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}