We don’t like this term. Because if we search for a definition of a mortgage, we get this:
a legal agreement by which a bank, building society, etc. lends money at interest in exchange for taking title of the debtor’s property, with the condition that the conveyance of title becomes void upon the payment of the debt.
If the bank is lending money, then regardless of whether they call the profit or rent or interest, this is riba from a shariah point of view and, therefore, would be haram. So, a “halal mortgage” is a oxymoron.
It’s a bit like calling a turkey rasher, “halal bacon,” or referring to your wife as “halal girlfriend.” Yes, it sounds ridiculous.
Anyway, if you would like us to check if you qualify for a halal home purchase plan, please complete our eligibility form.