Home Purchase Plan

Home Purchase plans allow you to pay rent, not interest, when you purchase or refinance a property. Your bank becomes your landlord and you pay rent to them each month. The more rent you pay, your ownership share in the house increases.

Every month from the bank you will receive a statement stating how much of your ownership share has increased. With the conventional banks you pay Interest and capital each month to reduce your loan size.

Islamic banks use the same concept but instead of paying capital and interest you just pay one amount which is called “rent”.

Like a conventional bank at the end of the term of the loan you own the house outright “unencumbered”.  With Islamic finance at the end of your tenancy term you will own the house outright.

To summarise, unlike conventional mortgages and refinances, Home Purchase Plans (HPP) and Buy to Let Purchase Plans (BTLPP) do not involve interest charges and are based on joint ownership.

Your monthly payment increases your share in the property and includes a payment for the use of the share that the Bank owns. At the end of the finance term, you will own the property outright.

This type of plan is commonly used by the Islamic Community as it complies with Sharia Law.

We can arrange the finance via our qualified affiliated companies.