Islamic home
financing: Sharia-
compliant
homeownership
with your values. Whether you’re looking to refinance or seeking a
new home, we’ve got you covered.
Types of sharia-compliant home financing
Discover our diverse selection of Islamic home financing sourced through trusted Sharia-compliant financial partners. From Ijara to Murabaha and Diminishing Musharaka, we offer solutions tailored to align with your faith and financial aspirations, helping you secure the right Sharia-compliant home financing with Square Mortgage.
Ijara (Lease-to-Own)
Transition seamlessly to ownership through lease-to-own agreements, where the bank buys the property and leases it to you, transferring full ownership at the end of the term.
Murabaha (Cost-Plus Financing)
Experience ethical financing with transparent cost-plus purchase arrangements. Opting for a classic Murabaha structure ensures total visibility of the fixed property cost and profit margin from day one.
Musharaka (Partnership)
Build equity with a co-ownership model (Diminishing Musharaka) where you and the bank buy the property jointly, allowing you to gradually buy out the bank’s share over time.
Frequently asked questions about Islamic home financing
What is Islamic home financing?
Islamic home financing is a Sharia-compliant method of purchasing property that avoids charging or paying interest (Riba). Instead of lending money for profit, Islamic financial institutions use asset-backed agreements—such as joint ownership, leasing, or cost-plus sales—to help you acquire your home ethically.
How does Islamic home financing differ from a conventional mortgage?
While conventional mortgages are money-lending contracts that charge interest on the principal loan, Islamic home financing is an asset-based transaction. Profit is earned through rent payments (Ijara) or a predetermined markup on the sale price (Murabaha), avoiding financial penalties on late fees and speculative risks
Who can apply for Islamic home financing?
Islamic home financing is open to everyone, regardless of faith or background. Anyone who meets standard income, credit, and residency eligibility criteria can apply for Sharia-compliant financing in the UAE.
How do I apply for Islamic home financing with Square Mortgage?
Applying is simple and fast. You can start by filling out your details on Square Mortgage, comparing Sharia-compliant home financing offers from top Islamic lenders, and letting our dedicated advisors guide you from pre-approval through to final property ownership.