Criticized by the leader of the Bloc Québécois, Islamic mortgage loans are not known to the whole population.
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• Read more: Quebec does not like Islamic mortgages
In an interview with TVA Nouvelles, Jocelyn Girira, associate professor of finance at Athabasca University, tried to popularize the idea, which already exists in Quebec and Canada.
What do they contain?
“The idea is to increase the price of the house, so initially take the loan and give the loan without interest, but the loan will be increased,” explains Professor Girira.
“It's going to be about the deals. The mortgage payments are going to be about the same, but the payments are going to be relatively a little higher because people are going to pay the costs because of the trusts,” he adds.
Who avails these loans?
According to the expert, only Orthodox Muslims would be interested in this type of loan, that is, less than 1% of the Canadian population.
“Not all my friends and acquaintances have so-called halal mortgages,” says the Muslim professor.
Is it appropriate to include them in the Canadian tax code?
“If there is a need and it is not addressed by a normal system, consumers will find another way, so they will go to other channels. And it is like what happened with cannabis: it is better to allow and regulate than not to allow,” says Jocelyn Girira.
Watch the video above to watch the full interview.
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