WAKALA MORTGAGE

Key features

  • New. Started in Canada but option is available to anyone internationally!
  • No Upfront Fees
  • No Extra Cost compared to a regular Canadian Mortgage
  • No Profit Sharing
  • No Loan Amounts Limit
  • Competitive Rates that all can enjoy Access to all funders and lenders  
  • Payments Weekly, biweekly, semimonthly, and monthly.
  • Offers mortgages on purchases, refinances, and transfers. Commercial and Investment properties included The financing rate is dependent on your personal credit and risk profile.
  • The minimum down payment is 5%.
  • Supporting the long term development of Halal financing internationally  

Key Difference

The fundamental difference between a conventional mortgage and Wakala Mortgage is the payment system. The conventional mortgage is an interest-bearing loan agreement requiring interest payment while the Wakala Mortgage process has a third party pay your monthly payment giving you the peace of mind that you are not directly making a mortgage interest payment monthly.  

Process

  1. We will put you in touch with a regulated mortgage agent. They will answer your mortgage related questions.
  2. Once you are approved to transfer your current mortgage or take a new mortgage you will be guided to sign up Wakala Legal Research Program that will have a monthly administration fee (service Ijarah fee).
  3. Every month you will pay your fee towards the Wakala Legal Research Program. Wakala Mortgage will pay your monthly mortgage amount. Payment options exist where you can be appointed an agent (wakala) for Wakala Mortgage as a wakeel (wakala – agent). Please contact us for more information.  

Wakala Legal Research Program

Legal Research Program

Clients who use a Wakala Mortgage agent have the option to enter into our Wakala Legal Research Program. The Wakala Legal Research Program will allow clients to submit unlimited legal questions where legal experts will provide written response. All areas of legal law in your country will be researched. The monthly fee will be $2000 for most clients (The Administration fee is not a extra cost this fee will be used to pay your mortgage by a third party). Over the years the accumulated administration fee can at anytime be turned to nil if in lieu of the debt a book is given. This will be in the agreement with the Administration fee contract.  

Transaction example

Client has $1500 mortgage monthly payment with a conventional mortgage lender. They consult with our approved mortgage agents and initiate the transfer process. Once approved they will sign up our Wakala Legal Research Program. Our Wakala Legal Research Program would invoice $2000 Administration fee monthly (The Administration fee is not a extra cost this fee will be used to pay your mortgage by a third party). Client will pay $1500 towards the Administration fee. Wakala Mortgage will then pay the monthly mortgage. Over the years the accumulated administration fee can at anytime be turned to nil if in lieu of the debt a book is given. This will be in the agreement with the Administration fee contract.   

Letter Agreed by Various Community Leaders and Imams

December 1 2017   

I recommend Wakala Mortgage to the Canadian Muslim community or in other countries like Canada where the government has not accepted Islamic forms of financing (Musharakah, Ijarah, Murabahah, etc), especially those who currently have a conventional mortgage. We do not recommend Wakala Mortgage to those who have a peace of mind of continuing to rent, obtain a lower price property, or who are able to get approved for a better Halal financing solution, on account of its defects. However, those who insist on obtaining a conventional mortgage, or those who already have a conventional mortgage would be better served to adopt our product. We classify this non traditional product, however we are of the opinion that the need and necessity is severe enough in order to temporarily support this product. This will give Wakala Mortgage the opportunity to proof to us their drive for innovation in this sector. Wakala Mortgage complies with many elements of Halal financing but is not a traditional Halal financing product and is committed to establishing a long-term certified Halal solution itself or with other institutions. Some of our considerations for need and necessity are outlined below:     

  1. The home ownership in Canada is around 70%, however, the home ownership rate within the Muslim community is significantly lower (estimated at 47%). This is not due to the Muslim community lacking income or financial discipline. Rather the main cause is the lack of affordable and convenient Halal financing.
  2. Wakala Mortgage requires a client to sign up for the Wakala Legal Research Program. An administration fee is charged to the Wakala Legal Research Program. The Wakala Legal Research Program administration fee is a valid transaction from a shariah perspective and is considered an Ijarah service fee. This is an independent action where clients can submit unlimited legal questions and obtain expert responses. A third party then submits the funds from the administration fee to a mortgage lender. A client has the peace of mind that rather than paying a mortgage payment monthly they will now be paying a monthly administration fee towards the Wakala Legal Research Program.
  3. Wakala Mortgage will require the lowest term be taken such as an open mortgage, 1-year or 2-year term when possible in order to allow the quick transfer to a certified shariah-compliant solution
  4. A minimum amortization schedule will be arranged so to reduce the years of debt where possible.
  5. Wakala Mortgage is a temporary product before a client converts to a traditional Halal product
  6. Wakala Mortgage will work with other institutions to find a traditional  Halal solution in the market place
  7. Wakala Mortgage will not charge any extra fee, setup fee, monthly fee, etc.
  8. By supporting Wakala Mortgage, a long-term solution can be achieved rather than Muslim incomes being used to finance the growth of the conventional mortgage industry who have not accommodated Halal financing to date.