What is a Halal Mortgage?
What is a Halal Mortgage?
As per Islamic requirements in respect to financing, Manzil’s relationship with the customer is a relation of a seller to a buyer for Murabaha or a partner for Musharaka, and not a lender to a borrower as it is in conventional lending.
A lender lends money and is repaid with more money (i.e. interest which is prohibited from a Shariah point of view), while Manzil finances the transaction through buy and sell activities or a partnership, so that there is a profit on the transaction, and not interest (Riba).
As per Islamic requirements in respect to financing, Manzil’s relationship with the customer is a relation of a seller to a buyer for Murabaha or a partner for Musharaka, and not a lender to a borrower as it is in conventional lending.
A lender lends money and is repaid with more money (i.e. interest which is prohibited from a Shariah point of view), while Manzil finances the transaction through buy and sell activities or a partnership, so that there is a profit on the transaction, and not interest (Riba).
What makes it Halal?
Interest-Free (No Riba)
Under Islamic law, Riba (or interest) is prohibited as it's an exploitative arrangement that keeps the poor stuck with ever-growing debts while the rich increase their wealth without creating any extra value.
Islamic Compliant Transactions
Our investment, finance and mortgage products are based on Shariah compliant underlying principles including Murabaha (cost plus sale), and Musharaka (partnership).
Shariah Governance
Three layers of Shariah governance:
Internal Shariah compliance function
Active three-member Shariah Supervisory Board
Independent external Shariah Auditor
Clear & Transparent Contracts
Contracts are fair, clear, and transparent. Both regulatory and Shariah compliance requirements have been reviewed by our legal and Shariah teams to ensure relevant compliance. Terms are laid up front in clear and simple language.
How is Halal Financing different?
How is Halal Financing different?
There is a misconception amongst the general public that Islamic finance is the same as conventional, simply because both specify the finance cost as a percentage. This is a huge misnomer because using a percentage is just a method of pricing. What is most important is not the use of the percentage, but rather what such a percentage represents.
There is a misconception amongst the general public that Islamic finance is the same as conventional, simply because both specify the finance cost as a percentage. This is a huge misnomer because using a percentage is just a method of pricing. What is most important is not the use of the percentage, but rather what such a percentage represents.
For example:
For example:
A car dealer can buy a car for $1,000 and sell it for $1,200 making a profit of $200, which can be expressed as 20%. On the other hand, a person can lend someone a $1,000 dollars and demand that the borrower pays it back as $1,200, thus making a 20% interest.
A car dealer can buy a car for $1,000 and sell it for $1,200 making a profit of $200, which can be expressed as 20%. On the other hand, a person can lend someone a $1,000 dollars and demand that the borrower pays it back as $1,200, thus making a 20% interest.
The difference between the two scenarios, from a Shariah point of view, is that the 20% made from selling the car is a permissible profit (as it involves taking risk of ownership in the items being sold), while the 20% interest on a loan is the pure definition of prohibited Riba (where the lender did not put any work or take on any risk to earn such increase).
The difference between the two scenarios, from a Shariah point of view, is that the 20% made from selling the car is a permissible profit (as it involves taking risk of ownership in the items being sold), while the 20% interest on a loan is the pure definition of prohibited Riba (where the lender did not put any work or take on any risk to earn such increase).
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Aghaz Investment Advisors, LLC ("Aghaz") is a subsidiary of Manzil Inc. ("Manzil").
Aghaz Investment Advisors, LLC (“Aghaz”) is a registered investment adviser located in Seattle, WA. Aghaz may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements.
Aghaz' website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Aghaz' website on the Internet should not be construed by any consumer and/or prospective client as Aghaz' solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.
Any subsequent, direct communication by Aghaz with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Aghaz, please contact the state securities regulators for those states in which Aghaz maintains a registration filing. A copy of Aghaz' current written disclosure statement discussing Aghaz' business operations, services, and fees is available at the SEC’s investment adviser public information website – www.adviserinfo.sec.gov or from Aghaz upon written request.
Aghaz does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Aghaz' website or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. This website and information are provided for guidance and information purposes only. Investments involve risk and unless otherwise stated, are not guaranteed.
This website and information are not intended to provide investment, tax, or legal advice.
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Stay in the know about Manzil US
Legal
Aghaz Investment Advisors, LLC ("Aghaz") is a subsidiary of Manzil Inc. ("Manzil").
Aghaz Investment Advisors, LLC (“Aghaz”) is a registered investment adviser located in Seattle, WA. Aghaz may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements.
Aghaz' website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Aghaz' website on the Internet should not be construed by any consumer and/or prospective client as Aghaz' solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.
Any subsequent, direct communication by Aghaz with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Aghaz, please contact the state securities regulators for those states in which Aghaz maintains a registration filing. A copy of Aghaz' current written disclosure statement discussing Aghaz' business operations, services, and fees is available at the SEC’s investment adviser public information website – www.adviserinfo.sec.gov or from Aghaz upon written request.
Aghaz does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Aghaz' website or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. This website and information are provided for guidance and information purposes only. Investments involve risk and unless otherwise stated, are not guaranteed.
This website and information are not intended to provide investment, tax, or legal advice.
Google Play and the Google Play logo are trademarks of Google LLC.
Stay in the know about Manzil US
Legal
Aghaz Investment Advisors, LLC ("Aghaz") is a subsidiary of Manzil Inc. ("Manzil").
Aghaz Investment Advisors, LLC (“Aghaz”) is a registered investment adviser located in Seattle, WA. Aghaz may only transact business in those states in which it is registered or qualifies for an exemption or exclusion from registration requirements.
Aghaz' website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of Aghaz' website on the Internet should not be construed by any consumer and/or prospective client as Aghaz' solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.
Any subsequent, direct communication by Aghaz with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. For information pertaining to the registration status of Aghaz, please contact the state securities regulators for those states in which Aghaz maintains a registration filing. A copy of Aghaz' current written disclosure statement discussing Aghaz' business operations, services, and fees is available at the SEC’s investment adviser public information website – www.adviserinfo.sec.gov or from Aghaz upon written request.
Aghaz does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Aghaz' website or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. This website and information are provided for guidance and information purposes only. Investments involve risk and unless otherwise stated, are not guaranteed.
This website and information are not intended to provide investment, tax, or legal advice.
Google Play and the Google Play logo are trademarks of Google LLC.