Halal Mortgage Calculator
Estimate the monthly cost of riba-free home finance. Pick a structure, enter your numbers, and see the payment, total profit and total cost — no interest involved.
The three main halal home-finance structures
All of them replace interest (riba) with a real asset transaction. The monthly cost ends up similar to a conventional mortgage, but the contract is fundamentally different:
Diminishing Musharakah
You and the provider co-own the home. You buy out its share gradually and pay rent on the portion it still owns. The most common model today.
Murabaha
The provider buys the home and sells it to you at an agreed, disclosed mark-up, which you repay in fixed instalments. No compounding interest.
Ijara
The provider buys the home and leases it to you; your payments are rent plus a gradual purchase, and ownership transfers at the end.
Why it's allowed
Profit from a genuine sale or lease of an asset is permissible; charging for the time-value of money (interest) is not.
Halal home finance FAQs
No. In a compliant contract the provider takes ownership risk in a real asset (a home) and earns profit from selling or leasing it. The rate may be benchmarked to the market, but the underlying transaction — not a loan of money at interest — is what makes it permissible.
Usually yes, often with no penalty, since there's no future interest to forgo — you simply buy out the remaining share. Confirm the early-settlement terms with your provider.
Yes — providers require the property to be insured (many prefer Takaful, the Islamic cooperative form). See our home insurance calculator.