Questions to Ask Before Signing an Islamic Mortgage Agreement

Sitting in front of an Islamic mortgage adviser can feel intimidating. You want to ask the right questions, but you do not want to sound suspicious or uninformed. At the same time, this is one of the biggest financial commitments of your life —and your deen is on the line too. 🏡

Going into that meeting with a written checklist of questions can change everything. It slows the conversation down, forces the adviser to be clear, and gives you notes to share with scholars or family afterwards. This article offers questions you can adapt and take with you.

Key Takeaways: Be Curious, Calm, and Clear

• It is your right as a Muslim customer to understand the structure and Sharia reasoning behind a product.
• Good advisers will welcome thoughtful questions and take time to answer them.
• Focus questions on ownership, profit calculation, risk, and exit.
• Take notes and documents home so you can reflect and consult scholars rather than deciding on the spot.
• If the provider cannot explain things in simple terms, treat that as a warning sign.

Questions About Structure and Ownership

Start by understanding what kind of Islamic structure you are actually being offered:

• Is this based on murabaha, ijara, diminishing musharakah, or a mix?
• Who owns the property at the start, and how is that documented?
• When and how does ownership move from the bank/finance company to me?
• Is a separate company or trust involved, and why is that needed from a Sharia and legal perspective?

Questions About Profit, Rent, and Pricing

Next, look at how the provider actually makes money:

• How is the bank's profit or rent calculated, and what is it linked to?
• Does the rate track a benchmark like LIBOR or a base rate? If so, how is that justified Islamically?
• Can you show me the total amount I would pay over 25 years in this product?
• What other fees are there at the start, during the term, and at the end?

Questions About Hardship, Default, and Exit

It is crucial to know what happens if life does not go according to plan:

• What happens if I miss one payment? And several payments?
• Are there late payment fees? How are they calculated, and where do they go?
• If we need to sell the house due to difficulty, how will the sale proceeds be shared?
• Can I overpay or settle early without large penalties?

Questions About Sharia Oversight and Transparency

Finally, you want to know who has reviewed the product and how they stay involved:

• Who are the scholars on your Sharia board, and where else do they serve?
• Can I see a summary of their Sharia approval or any public statement about this product?
• How often is the product reviewed to ensure it still matches the approved structure?
• What happens if regulators force changes—do scholars review those changes too?

Summary: A Curious, Respectful Muslim Makes Better Decisions

Asking detailed questions about an Islamic mortgage is not a sign of bad adab—it is a sign of a Muslim who takes their deen and their family seriously. The right provider will respect that and gladly walk you through the answers. If you feel rushed, dismissed, or confused, that is valuable information in itself. 📋🌙

Take your time, write everything down, and share your notes with scholars or financially savvy Muslims you trust. Choosing an Islamic mortgage is not only about rates; it is about peace of heart in one of the biggest commitments of your life.

FAQ: Practical Question-Asking for Islamic Home Finance