Saturday, May 26, 2007

Shariah-approved Mortgage

A growing number of North Americans Muslims are willing to pay more for their mortgages, so long as the deal complies with their religious beliefs. It is estimated that at least one third of Muslims will refuse conventional mortgages because they violate shariah law, Islam's guiding body of rules, by charging interest. As a private mortgage investor, you may be able to find a way for this to work for you.

A shariah-approved mortgage could be structured as a co-ownership between the buyer and the lender in which the buyer leases to own.

In Canada, shariah-compliant mortgages are between 100 and 300 basis points more expensive than conventional mortgages. In the United States, however, the spread narrows to between 40 and 100 basis points.

About 40% of the 7.5 million Muslims in the United States do not own a house. The market could be immediately worth about US$1.7-billion.

To learn, buy Private Mortgage Investing.