Scared Monkeys Discussion Forum

What needs to be different

•Muslim law (Sharia) prohibits charging or paying interest

Are there Sharia-complaint products available now?

•Two approaches, both expensive
–Co-ownership, which complicates future financing
–Using rents to set mortgage payment

The Failure of Banks is leading people to believe that Shariah Banking is the key to financial success, but it is just the same ole, same ole, restructured, to look “interest free” but fees built into the sale. This is Propaganda and Taqiyya-Buyer Beware

How does a banking product become sharia compliant? In general, the banking services can't have any explicit interest; transactions can't be in economic sectors such as gambling, alcohol, pork or pornography; and they should be low risk.

So how the heck do you make money on no-interest mortgages? Well, UM Financial Inc. has found a way. This company is providing a sharia-compliant mortgage in the province of Ontario, and has already signed up 500 homeowners. The product is popular despite the fact that the homeowner is charged a deposit and it costs more than a regular mortgage. However, the "loan" is structured as a rent-to-own approach, so that it doesn't technically charge mortgage interest rates. UM Financial actually has a waiting list of 5,000 people who want to convert their mortgages to this approach!

Standardization of these financial products won't be coming soon. Each must be approved by sharia scholars. There are only a few of these unique individuals available, making waiting times for new product approval long.

Governed by the Islamic religion's sharia laws, which prohibit earning or paying interest on borrowed money, the market is expected to double in the next few years as American Muslims with conventional home loans look to refinance with Islamic products.

Lariba's interest-free mortgages resemble lease-to-own contracts. Buyers build equity while paying rent and principal. One difference: Lariba homeowners immediately take title while the finance company retains a lien. Its competitors offer variations.

"We are not run-of-the mill marketing people who find a niche and run with it," says Abdul-Rahman, elegantly attired in a dark suit and sleek tie. "We are humble servants of the community."

Under the terms of our Program you do not repay an interest-bearing loan. Instead, you become a co-owner with an “investor” (Guidance Residential), from whom you acquire full ownership through affordable monthly payments.

Each payment is made of two elements. The first portion is a charge, or a “Profit Payment,” that gives you the exclusive right to the use of the property. The remaining portion of the monthly payment allows you to acquire an increasing share of ownership in the home until you own it completely.

In the case of a home purchase, your initial share of ownership in the property is determined by your initial investment. For qualified applicants, this down payment may be as little as 5 percent of the property’s value. In this case, you will start owning 5 percent, and Guidance will own 95 percent.

If you are replacing an existing mortgage, Guidance will purchase a portion of your home and become a co-owner with you. For qualified homeowners, we can provide a replacement contract to finance up to 95 percent of the appraised value of your property. This allows you to cash out some of your equity to use for home improvement, college tuition or other worthwhile purposes.

With Guidance you are always a partner-never a debtor.

One World Government coming very soon! :(

A new "Tower of Babel" - look where that story went...