We recommend, as a first step, to submit your application and reserve your place in line (if you have not already done so); there is a minimum 24-month wait period for all new applicants. There is no obligation to continue, and we will not pull a credit check without your expressed authorization.
Also, please note that we are currently only available in Ontario, but Inshā Allah we will be able to support Quebec, Alberta, and BC in the coming year.
Some high level information about our home financing program:
- We offer both Murabaha and Musharaka transaction models
- Home owner gets title on closing
- Our funds are 100% sourced from private investors, and not through loans or lines of credit through banks or credit unions
- There is a minimum 20% down payment requirement for all financings (new purchase and transfers); with a maximum financing amount of $1,000,000
- Fixed term/amortization of up to 25 years
- And a one-time 2% administrative fee (of the financing amount) due on closing
Murabaha: a profit sale model, where Manzil would purchase the home from a seller at one price, then sell it to the eventual buyer at a price plus profit.
Musharaka: a partnership model, where each of us would come in as partners with respect to the money we put towards the purchase.
With respect to rates, in a Murabaha, rates are based on term:
25 year = 7.29%
20 year = 6.79%
15 year = 6.29%
10 year = 5.79%
5 year or less = 6.29%
In a Musharaka, rates are based on Bank of Canada (BoC) prime + 4.2% (currently at 6.2%). Please note, that this isn't interest as we are not lending money, but rather financing the transaction in a partnership model; we use the posted BoC rates as a means to transparently determine the return we provide to our investors.
Please visit our mortgage calculator to get an estimated pricing for your mortgage.
