Alberta government introduces legislation to enable halal mortgage options
This move aims to broaden access to compliant home financing options within mainstream financial institutions, addressing a long-standing gap in Canada’s housing finance market.
Alberta has introduced new legislation allowing provincially regulated financial institutions, such as ATB Financial and credit unions, to offer halal home financing options, making homeownership more accessible for Muslims who avoid traditional interest-based mortgages due to their faith.
Alberta Finance Minister Nate Horner indicated that the changes were prompted by industry demand, though institutions won’t be required to offer these products.
Currently, only a few private lenders offer halal financing, which typically involves a bank purchasing the home and the client making fixed monthly payments with a profit margin instead of interest.
This move aims to broaden access to compliant home financing options within mainstream financial institutions, addressing a long-standing gap in Canada’s housing finance market.
