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?
Join the waiting list for home finance.
By registering a Pfida account, we’ll automatically add you to the public waiting list for home finance. You could be eligible for finance in as little as a year with a recommended 20% initial equity contribution from you.
GYS account holders have a different waiting list. Check the waiting list here.
Your wait time is dependent on a number of factors, such as how much deposit you have, how much finance you need and your affordability. You can tell us this information by completing the finance requirements form after registering your account.
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.
We know 5 years is quite a long time to wait we’re working hard to finance as many customers as quick as possible.
Our GYS Home account holders have a different waiting list for home finance that you can view 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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