mortgages

[kimsmum]

Hi: I was just in Tunisia recently and saw a lot of new apartments going up and I was wondering how Muslims finance their mortgages seeing as how they don't beleive in credit? Can anyone tell me?

[R1Geezer]

They have "Islamic Mortages", Barclays is the main source in this country, essentially they emulate hire puchase. The bank buys the house then charges them "management fees" and "rent" for the duration of the mortgage. The difference is that they only own the house when the final payment is made. No Interest is charged as this woud be usery but fees and rent are within the rules. Not sure how it works at the land registry though.

[Greedyfly]

You learn something new every day!

[Buenchico]

R1Geezer has described an Ijara mortgage. An alternative is a Murabaha mortgage. See here:
http://www.mortgages....islamic-mortgage.html

Chris

[kimsmum]

Thank you RI Geezer for your answer. I was just curious about how it worked

[donna1901]

INTERESTING!!