Yeah, it's really dumb. The banks basically pay some Muslim Imam DEI bux to get their blessing and then they're good to go offering Islamic compliant loans.
On a normal mortgage you pay principal and interest amortized over many years.
With an Islamic mortgage, when you purchase a property, you have the purchase price of the property and then a bank fee. That bank fee is then split over many years. Exactly like interest. But it's a fee.
Then there is the one where they put the house in the banks name (but not really) and you pay "rent" leading to a purchase once a set amount of "rent" is paid.
From what I recall, they just tack on the interest that would have accrued to the total and pretend there's no interest being charged
Yeah, it's really dumb. The banks basically pay some Muslim Imam DEI bux to get their blessing and then they're good to go offering Islamic compliant loans.
On a normal mortgage you pay principal and interest amortized over many years.
With an Islamic mortgage, when you purchase a property, you have the purchase price of the property and then a bank fee. That bank fee is then split over many years. Exactly like interest. But it's a fee.
I've over simplified, but that's basically it.
Then there is the one where they put the house in the banks name (but not really) and you pay "rent" leading to a purchase once a set amount of "rent" is paid.
Good point! I forgot about that.
A lot of mental gymnastics for the exact same outcomes..
Muzzies, like Jews, believe God is easily fooled.