A halal mortgage?
We get this question a lot. In all honesty, a product called a ‘mortgage’ is unlikely to be halal or Shariah-compliant. The word ‘mortgage’ originates from two Latin words meaning ‘death pledge’ – not very appealing, right? That’s why we offer a clear alternative: Pfida’s home buying product, OwnTogether.
Partners, in it together.
OwnTogether operates as a partnership agreement, making us partners. Since we’re in it together, we prioritise flexibility and genuine risk sharing.
Watch our homebuying webinar on demand
Prefer a visual walkthrough of our interest-free homebuying model? Click below to watch our latest webinar, where we break down the OwnTogether partnership and how the journey works from registration to keys.
How is it halal and
Shariah-compliant?
Our products are fully Shariah-compliant and have been reviewed by Sheikh Haitham Al-Haddad and the Islamic Council of Europe. Integrity and ethical practice underpin everything we do, aiming for mutual benefit for everyone involved.
Here why our home buying product, OwnTogether, remains halal:
Debt-free
Our home buying product, OwnTogether, means we jointly own the property. You’re under no obligation to buy out our share, so there’s no debt involved. This approach removes any early or late repayment fees linked to purchasing additional equity.
Not pegged to interest
The rent we charge does not relate to macroeconomic indicators such as interest rates. Instead, it is determined by a number of factors including the local rental market, with annual rent reviews capped to reduce uncertainty.
Affordability
We sell you the property at the original purchase price, not the current market value, and offer rental discounts (unlike other shared ownership schemes), making it as affordable as possible.
True risk sharing
If there’s a loss or shortfall upon sale, proceeds are fairly split based on respective partnership shares, unlike traditional banks that typically claim proceeds first, potentially leaving the buyer with nothing.
Ultimate flexibility
Our technology empowers you to manage your journey through your account dashboard. Adjust your equity payments or choose to pay rent only whenever needed.
Your equity, your choice
We minimise foreclosure risks by introducing an equity buffer, allowing you to pay in equity if rent becomes temporarily unaffordable. You can buy back equity at your own pace later.
Riba vs. Rent – what’s the difference?
We often get asked if interest is hidden within rent charges. Here’s a clear distinction:
Scenario 1
You borrow money from a lender, accruing debt and interest over time.
Scenario 2
You own an asset with us and pay rent on the portion you don’t own, without contractual debt obligations.
OwnTogether operates like Scenario 2. There’s no contractual obligation for you to buy our share, giving you genuine flexibility without the burden of debt.
Finance Term Explained:
We suggest a preferred timeline for purchasing full equity in your home, which helps you plan monthly rent and equity contributions. However, these suggestions are flexible, not contractual obligations.
Ultimately, our goal remains helping you achieve homeownership in a halal and Shariah-compliant manner.
What do the industry experts say?
Start your Pfida home finance journey
Help other families into their homes, build towards your own, and enjoy exclusive rental rates.
As you save your downpayment through GYS Home, you’ll also build Community Points through SaveTogether. You earn them for helping other families in our community buy their homes.
Your Community Points target is based on the amount of Home Finance you require. Once you reach your Community Points target and meet our eligibility requirements, you become eligible to apply for Pfida Home Finance. You can follow your progress on your dashboard at any time. See what your timeline to home finance might look like here.
As a GYS Home account holder, you’re helping others while you build towards your own home, and we want to reward that. So when you’re financed for a home, you’ll get access to exclusive rental rates.
FAQs
Take a moment to check out our home finance eligibility criteria to make sure you meet the requirements.
Click here to check your eligibility.
Your home finance timeline is based on reaching your Community Points target, which is set by how much finance you need and how long your downpayment for your home is saved in your GYS Home account. You can find out more here.
You can read about stamp duty and how it impacts your home purchase by clicking here.
Need more help? Visit our help centre for more information.
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