Canada PM JustinTrudeau plans for ‘halal mortgage’ for muslims in Canada
Canada PM JustinTrudeau plans for ‘halal mortgage’ for muslims in Canada
In a new development, plans are afoot by the Canada government to introduce halal mortgage for muslims and impose ban on foreigners from buying land in country for two years in its annual budget.
Notedly, the Canadian government is exploring options to broaden access to financing alternatives, including halal mortgages.
This initiative comes as part of PM Justin Trudeau’s attempts to extend support Canadians aspiring to become homeowners, with particular focus on Muslim community.
In the recent federal budget, the Liberal government revealed that it has initiated consultations with financial services providers and various communities. The goal is to better understand how federal policies can cater to the diverse needs of Canadians seeking home ownership.
In the Canada Budget 2024 announcement, this could include changes in the tax treatment of these products or a new regulatory sandbox for financial service providers, while ensuring adequate consumer protections are in place.”
Halal mortgages are compliant with Islamic law, which prohibits the charging of interest, considering it a form of usury. While other Abrahamic faiths, such as Judaism and Christianity, also view usury as a sin, Islamic financial institutions uniquely offer mortgage and lending products that avoid conventional interest payments.
While some Canadian financial institutions already offer Islamic law-compliant mortgages, none of the country’s five major banks currently provide them.
It’s the belief of the experts that these alternative mortgages might not be entirely interest-free but could involve regular fees as substitutes for interest charges.
Many on social media called it a ‘woke idea’ that intends to benefit one section of the society, “Religious financial products with different tax treatment.
News Edit K.V.Raman
