New pathway to home ownership
Home ownership for more Albertans
Amended legislation makes home ownership more accessible for Albertans by allowing provincially regulated financial institutions to provide alternative finance structures, including halal mortgages.
Servus Halal, a wholly owned subsidiary of Servus Credit Union, is proud to offer a halal mortgage product under this alternative finance legislation. Our specially trained financial advisors are excited to help you with your homeownership journey!
halal mortgages
What is alternative mortgage financing?
In Canada’s traditional banking system, mortgages are typically interest-based finance structures.
Examples of alternative finance structures are ‘cost-plus-profit’ or ‘fee-based’ finance structures.
Interest-based financing is not permissible in the Islamic faith. As a result, some practicing Muslims have had to sacrifice their faith to pursue home ownership in Alberta’s credit union and banking system.
Halal financing (like saving, investing, and borrowing to buy a home) adheres to rules and principles of Islamic faith. All halal products must also meet the laws and regulations of the jurisdiction they are sold in (e.g., the province of Alberta.)
The Servus Halal Mortgage agreement is a cost-plus-profit structure, rather than an interest-based system.
This type of mortgage product is commonly available in many parts of the world, however in Canada it has mainly been available through private investors. Until now!
highlights
What to know about the Servus Halal Mortgage
Trust
Servus Halal consulted extensively with, and receives certification from, the Canadian Islamic Finance Board (CIFB), an independent body made up of recognized Islamic scholars and finance experts from various parts of Canada.
Halal Mortgage
The Servus Halal Mortgage is a cost-plus-profit financing structure. It uses a Murabaha agreement type that meets the principles of Islamic financing and the laws and regulations of the province of Alberta.
Accessibility
Products sold by Servus Halal are available to all Albertans. Just as with non-halal mortgage financing, anyone who meets the down payment and income requirements is eligible to apply.
Who We Are
Servus Halal is a wholly owned subsidiary of Servus Credit Union. Specially trained financial advisors serve halal mortgage customers across Alberta.
Confidence
Servus Halal is governed by the Credit Union Deposit Guarantee Corporation (CUDGC) and the laws of the province of Alberta.
Learn More
Your homeownership journey starts here! Please review these documents and complete the items on the Preapproval Checklist before requesting a meeting with one of our financial advisors
READY TO APPLY?
Contact us
Once you’ve completed the steps in the Preapproval Checklist, please contact us to schedule a meeting with a Servus Halal financial advisor:
info@servushalal.ca
We look forward to serving you and supporting more Albertans in their home ownership journey!
FAQs
Who is eligible for a Servus Halal Mortgage?
Just as with non-halal mortgage financing, all Albertans (or anyone purchasing a home in Alberta) who meet the down payment and income requirements are eligible to apply for a halal mortgage.
Is a halal mortgage free?
No. Halal mortgages generate profit for the financial institution, similar to non-halal mortgages, but it is through a cost-plus-profit rate, rather than an interest-based system.
How is the cost of a halal mortgage determined?
When comparing the cost of mortgages, it’s important to compare apples to apples. For example, the 25-year fixed rate halal mortgage details and costs are not the same as a 5-year fixed rate interest-bearing mortgage, so the overall costs are not comparable.
Halal mortgage costs include the price of the home, and an agreed-upon profit amount for the lender.
There are also additional transaction and certification costs that are not present in a non-halal mortgage.