Understanding Islamic Mortgages: What Makes Them Different? Lease-to-Own Option (Ijara): How It Works in the UAE Ijara is a Sharia-compliant lease-to-own structure that allows buyers to gradually own a property without paying interest. Here’s how it works: 🏦 Bank Purchases the Property: The bank buys the property on your behalf and becomes the legal owner initially. 🏠 You Lease the Property: You pay a monthly rent to the bank for using the property. This rent is agreed upon upfront and stays fixed throughout the lease period. 📈 Gradual Transfer of Ownership: Part of your monthly payments goes toward buying the bank’s share of the property. Over time, you gradually acquire full ownership. ✅ Transparent & Sharia-Compliant: All terms—including rent, payment schedule, and eventual ownership transfer—are clearly defined in the contract. There’s no hidden fees or interest, making it ethical and fair. 💡 Flexible & Secure: Ijara allows you to live in your home immediat...
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Showing posts from October, 2025