Frequently Asked Questions
FAQ
Frequently Asked Questions
How do profit rates differ from conventional interest?
Profit rates are a fixed agreed markup or rent for shared ownership. Unlike interest, they reflect fair compensation for service or asset use, fully compliant with our principles.
What happens if I miss a payment?
We apply a small late-payment fee donated to charity; your equity share remains unaffected. Our team contacts you promptly to agree a recovery plan without punitive penalties.
How are profit rates set?
Profit rates are agreed upfront based on market norms and board guidance. They remain fixed for the term, ensuring complete transparency and no hidden charges.
Can I pay off my home early?
Yes. You may buy out the remaining partner’s share at any time without penalty, subject to a minimum holding period. Early buy-out terms are detailed in your agreement.
Is there a markup in Murabaha financing?
Yes. Murabaha uses a transparent cost-plus markup. We disclose the exact percentage clearly before agreement, so you know your total payments from day one.
How does diminishing Musharakah work?
You jointly own the property with us, gradually buying our share over time. Each payment increases your equity while reducing our stake, until you own 100 %.
What is Ijara rent?
Ijara is a lease-to-own model. You pay a fixed halal rent for a set term, then purchase ownership at the end or earlier under fair buy-out terms.
Are there hidden fees?
No. All fees—profit rate, administrative or transaction—are disclosed upfront. We believe in full transparency so you face no surprise costs.
Can I Refinance?
Yes! After an initial period you may request a Refinance in which your existing contract is paid in full and a new one begins.
How is my ownership share increased?
With diminishing Musharakah, each payment transfers a portion of our share to you. A clear schedule shows equity growth, so you track your ownership daily.