Halal Mortgage Calculator
Estimate the monthly payment and total cost of Sharia-compliant home financing in Canada, compare Manzil, Eqraz, Ijara and Canadian Islamic Wealth side by side, and see how a halal profit rate stacks up against a conventional interest-based mortgage.
Where your total payments go
Amount financed vs the total profit (rent) paid over the full amortization.
Halal home-financing providers in Canada
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| Provider | Model | Est. profit rate | Est. monthly |
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Ranked by estimated monthly cost at your inputs, lowest first. Ranking uses the math only, never referral links. Each provider's estimate uses the midpoint of its representative rate range.
How this is calculated
The payment
The amount financed is home price − down payment. The monthly payment is the standard amortizing formula P × r ÷ (1 − (1+r)^−n) where r is the monthly profit rate (annual rate ÷ 12) and n is the number of months. Halal financing is generally profit- or rent-based and compounds monthly, so we compound monthly, not semi-annually. Total cost is the monthly payment times the number of months; total profit paid is total cost minus the amount financed.
Why this is not riba (interest)
In a conventional mortgage the bank lends money and charges interest on that loan, which is riba. Halal structures avoid this by having the institution take part in the actual home:
Murabaha (cost-plus sale). The institution buys the home and resells it to you at an agreed, disclosed markup payable in fixed instalments. The markup is fixed up front and never changes. Its return is profit on a genuine sale of an asset, not interest on a loan.
Diminishing Musharaka (declining partnership). You and the institution co-own the home. You pay rent on the share you do not yet own and, separately, buy out the institution's share over time. As your ownership grows, the rent portion shrinks. Its return is rent on property it actually owns.
Ijara (lease-to-own). The institution owns the home and leases it to you; your payments are rent, and ownership transfers to you at the end of the term.
Halal vs conventional
For contrast the tool also shows a conventional, interest-based mortgage at a reference 5-year fixed uninsured rate of 4.44% (as of July 2026), calculated the Canadian way with semi-annual compounding. That conventional figure is not halal; it is shown only so you can see the gap. Halal financing often costs somewhat more because the market is smaller and most products are uninsured.
Down payment
Most Canadian halal products are uninsured, so a down payment of 20% or more is the norm. There is no CMHC-style low-down-payment insurance for them, though some co-ownership structures may allow less. This tool does not add any insurance premium.
What this does not model
Actual provider underwriting, fees, closing costs, rate resets, early-payout terms, property taxes, or the precise legal mechanics of each contract. Estimates use each provider's representative rate range, not a quote. This is an educational estimate, not a fatwa and not financial advice.
FAQ
Is a halal mortgage really interest-free? No interest is charged on a loan of money. The institution instead earns a disclosed profit (Murabaha), rent on a co-owned share (Diminishing Musharaka), or lease payments (Ijara). The math can look similar to a loan, but the structure and the contract differ.
Why do halal mortgages cost more? A smaller market, less competition, mostly uninsured products, and extra structuring work mean the effective profit rate is often a little above the best conventional rate.
What down payment is needed? Usually 20% or more, because most Canadian halal products are uninsured. Some partnership structures may allow less.
Which providers offer halal mortgages in Canada? Providers active in Canada include Manzil, Eqraz, Ijara Community Development Corp, and Canadian Islamic Wealth. Availability and pricing vary by province and applicant.
Do scholars agree these are halal? Scholars differ on specific contracts and providers. This tool is educational and takes no position; consult a qualified scholar and a licensed mortgage professional before committing.