The fundamental difference is the underlying product structure. A conventional mortgage is an interest-bearing loan agreement, while the AYA Home Financing agreement is a trade-based product developed on the concept of Musharakah Mutanaqisah (Declining Balance).

You can read the full structure on our Home Financing Program page.

The customer pays the financier monthly instalments, which consist of two portions:

• Profit portion — the financier grants the customer exclusive use of the property. In exchange for this consideration, the customer pays an occupancy user fee / profit to the financier.
• Equity portion — this portion of the instalment is used to acquire shares from the financier, so the customer's equity in the property increases over time.

Several factors determine the profit, such as the length of the contract, the amortization period, and the rate of return expected by the financiers. Profit rates are calculated to keep them competitive with the rates prevalent in the market.

AYA Financial and its institutional partners make every effort to keep the AYA Home Financing product competitive with the conventional mortgage products offered by banks and other financial institutions.

To see what this looks like on a specific property, use our payment calculator.

No. AYA Financial's products establish a trade-based relationship between the customer and the financier. The products are designed so that the structure defines the relationship of the transaction. In the AYA Home Financing agreement, profit is being earned, whereas in a loan transaction interest is being charged.

AYA Financial consults the Islamic Finance Advisory Board (IFAB), an independent body that oversees the development of Shariah-compliant products and services in Canada. It comprises leading Canadian scholars in Islamic Transactional Jurisprudence (Fiqh-al-muamalaat).

See the endorsement and fatwa, meet the scholars on our Advisory Board page, or visit islamicfinanceboard.com.

Yes — as long as the transaction between the parties involved is structured in a Shariah-compliant manner. AYA Financial specializes in structuring financial contracts according to Shariah, and our products are further vetted by a qualified and experienced advisory board made up of leading scholars in Islamic Transactional Jurisprudence (Fiqh-al-muamalaat).

See the endorsement and fatwa for further detail.

Once the requested documents are submitted, it usually takes AYA Financial and its partners one business week to issue an approval. We can then fund the closing within one month.

To see what you need to get approved, visit our application page.

Yes. When moving to a new property, the customer has the option of transferring the existing financing agreement.

From the inception of the contract, the title of the property is registered in the name of the customer. The financier has a charge over the property, registered at the time of financing. Once 100% of the financed amount is paid off, the charge is removed.

As the owner-occupant of the property, a customer is entitled to make minor home improvements and add value to the property. However, material changes that require construction permits from local authorities may require written approval.

All capital gains from the sale of the property go to the customer. The financier will only take the portion of the proceeds needed to cover the outstanding financed amount.

AYA Financial does offer a separate program where both parties can benefit from the gains or losses in the asset's value.

If a payment is missed, a fixed fee may be charged. This is applied towards the administration costs associated with recovering the late payment.

In most cases, municipal government levies property taxes to pay for services used by the public — police, fire services, schools, waste management, recreation, libraries and so on. Although the financier is part-owner of the house, it does not use utilities or benefit from municipal services funded by taxation.

As the owner-occupant gets the benefit and use of the space, the customer is required to pay all charges associated with that benefit: property tax, insurance, utility bills and similar. This can also be determined by mutual consent of the parties involved.