I want to take a loan for my house. As I want to do it in a halal way, I want to take an Islamic mortgage. But, the price is almost the same as with the conventional mortgage. I’m still confused, what is the difference between Islamic and conventional mortgage? Are they just the same?
Islamic mortgage is not a mortgage loan at all while conventional mortgage is interest-based loan. In some ways, Islamic home financing is similar to a mortgage, but its foundation is completely different. Islamic home financing is interest-free, and it is a halal (or permissible) way for faith-conscious Muslims and non-Muslims to purchase a home.