Islamic Mortgages are BROKEN - Here's Why | | Raza Ullah

Islamic Mortgages are BROKEN - Here's Why | | Raza Ullah - Muslim Money Talk Ep 14

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Күн бұрын

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@ShahnazB-np4ir Ай бұрын

The WHOLE time I was thinking hope the brother does not get diverted from his initial INTENTION of preventing RIBA and getting misled by finance but Alhamdulillāh he hasn’t. That’s why it’s important to CONSTANTLY RENEWING our intentions that it’s all for Allāh’s sake. Along the journey one can easily get diverted by doubts and desires but we must always go back to renewing our intentions. May Allāh grant him and us all sincerity. RIBA is no joke, it’s a system that destroys society.

@niazazadvlogs Ай бұрын

Another fantastic podcast Areeb, may Allah reward you brothers for bringing this to the fore and increase your rizq and barakah in this pursuits. Super important and insightful conversation!

@Sidabbey Ай бұрын

Ameen

@datujazing1287 20 күн бұрын

Jazakallah for this, ur Algo showed on my YT feed & now my family discovered PFIDA of Bro Raza, now i passed this to all my adult children to get in the property ladder the Halal way!

@Sidabbey Ай бұрын

What an inspiration Br Reza is to young (and some old) Muslims. May Allah bless you with even more barakat - Ameen

@zekhazimi5966 17 күн бұрын

Inspiring. Worked in fintech, everyone is always in a rush to grow but this guy is really abt sustainability. Wish this is brought in Malaysia

@muslimmoneyguy Ай бұрын

This conversation had many highlights. But this part hit home: "And Allah forgive me, I remember at that point saying, 'No Mom, you don't understand. You're wrong. It's not just about making dua, it just can't be done.' And SubhanAllah, I kid you not, the very next day... it’s like I could see Allah's hand just removing this boulder from the way like it never existed." Masha' Allah. I finished this episode feeling especially inspired.

@freshmindnow Ай бұрын

Subscribed. Thanks for sharing about this super important topic brothers.

@freshmindnow Ай бұрын

I've downloaded the app and going to give it a try. If you ever need UX feedback on it, more than happy to provide it. Salaam.

@ZDL679 Ай бұрын

The biggest issue I have found in uk Islamic mortgage is that you are forced to by buy the percentage although some may allow just to rent the property this is only for a period of time and your are eventually going to have to buy the house.

@familyrehman646 Ай бұрын

I am with gatehouse and my brother is with primary finance so I can compare the two products. The primary finance model is great and the only big difference I found that if you can’t pay the mortgage due to financial difficulties then you can just pay the rent. If you use their calculator then there is not much difference in monthly payments. The waiting list is very long unless you invest 50k plus. Just remember, if you buying the first house then the stamp duty is very high. You will pay the stamp duty of second house. All Islamic home products including PF don’t share the burden. You will have to pay for the home insurance, house maintenance and etc.

@mektrode Ай бұрын

Salaam, that is valuable insight to be able to compare the two products within your family Allahuma baarik. I’ve heard somewhere the stamp duty must be paid twice or something with PF, could you confirm if that is the case? Also how do they calculate the target rent per month? And how long did your brother have to wait? Jazakallahu Khairan for the insight once again

@familyrehman646 Ай бұрын

@@mektrodeWalaikum Asslam, Yes, you pay the stamp duty of second house. My brother hated it. My brother invested over 50k, I don’t know the exact amount but he only had to wait 6-8 months. The more you invest the quicker you will get the house. Also, bear in mind the purchasing new build is not allowed. They are bit picky with the house choice.If the house survey report is not that good then you will be asked to look for another house. If you email brother Raza then he will Inshallah break down the monthly rent and your share. As far as monthly payments are concerned, there is not much difference between PF and gatehouse. I hope it helps.

@samiq2k936 Ай бұрын

@@familyrehman646 has your brother been through the rental review process the year after? Was increase much?

@familyrehman646 Ай бұрын

@@samiq2k936 I have not asked him the same question yet.

@samiq2k936 Ай бұрын

@@familyrehman646would appreciate if you could ask him. JazaKallah

@aiyubpatel9165 Ай бұрын

Brothers, it's ALL about intention

@zohaibmuhammad6263 Ай бұрын

I got the islamic mortgage but it felt like I have got the same traditional mortgage but with higher rates. They charged me £1000 product fee, rent is based on BOE, can’t make a repayment of more than 10% same as traditional mortgages then what’s the difference? Just calling it a rent makes it halal?

@familyrehman646 Ай бұрын

You need to understand the basics of Islamic finance. Specially musharka and mudharba, the Islamic mortgages are based on Afofi principles and we may not be agreed with every single principle. There are some clauses in your Islamic mortgage contract which doesn’t make it 100% sharia compliance but does this make the whole contract invalid? Discuss clauses with a scholar who is specialise in Islamic finance and then do istekhara after you have made up your mind.

@zohaibmuhammad6263 Ай бұрын

@@familyrehman646 thank you for your reply. I did do istekhara before making the decision. I’m with Gatehouse because all other providers like Pfida, wayhomes etc either have long waiting times or currently not financing.

@maddynibby Ай бұрын

If Pfida are going to be charging tenants/partners the current ludicrous rental rates then they will be making huge profit, more than banks supplying conventional Islamic or Haram mortgages. It's a good business model but costly for tenants unless they can quickly pay off the house...but may pay even more if the value of the house doubles over time... 🧐🤔

@rullah003 18 күн бұрын

You get rental discounts each month if you stick to your payments, which makes the pricing competitive with mortgages.

@mektrode 14 күн бұрын

@@rullah003 Why is it that these discounts are not displayed on your websites? One cannot even estimate roughly what the rent would total to, it’s very vague. On the other hand, I can go to gatehouse or stride up and make a calculation on what my monthly spend would be with them before I even pick up the phone to call so to say.

@rullah003 13 күн бұрын

@@mektrode the discounts are based on the characteristics of the property and application specifics, so we can only give that information once we have those details. Remember, we aren't a lender providing a mortgage product. We are an investment partner buying a property together with you and taking those risks in the property alongside you - a very different proposition to a mortgage. Typically though, we currently offer rental discounts that are at least 5-10% and can be higher.

@mektrode 13 күн бұрын

@@rullah003 Jazakallahu Khairan for explaining, good to finally have that insight. I agree it is fundamentally a different product and it is difficult to compare but comparisons is how I make sense of things I don’t understand. May Allah bless you all and make the mission you are on successful!

@jaymiah4261 Ай бұрын

Can i transfer my existing al rayan mortgage to a pfida mortage

@SafathN 24 күн бұрын

Do you have an australian chapter of Pfida ?

@arsalanmustafa1563 Ай бұрын

Islamic banks being helpful - so Muslims can preserve wealth is a an untested simplistic argument in my view . Imagine if there were no Islamic banks - would Muslims not invest more in entrepreneurship? Would pfida like firms not be 10x bigger - would there not be real innovation ? With this line of argument we should have tried to find shariah complaint gambling - It does pay taxes and help shareholders make money The primary beneficiary of Islamic banks have been unfortunately the shariah scholars, shariah lawyers and shariah bankers Sheikha Akkram nedawi ( teacher of yasir Qadhi) talks about why not make an exception for one home if we really believe in preserving wealth argument.

@ai120thx 23 күн бұрын

Islamically you're not even allowed to get a job as a cleaner for a bank due to the severity of ribba, I don't know how a 'teacher' would recommend working for one. It's important to seek islamic knowledge first before watching these videos, may Allah guide us and this brother too

@MuslimMoneyTalk 23 күн бұрын

Salaam- thanks for your comment! I understand your desire to divest from riba as much as possible but many scholars (including our own) take the view that as long as you’re reasonably removed from the riba generating process then the job’s income is considered halal. This could be someone working in compliance in a bank all the way to the cleaner as you say

@asadiqbal7890 22 күн бұрын

Walaikumsalaam

@ahmedissa2327 16 күн бұрын

@@MuslimMoneyTalkthis talk may as well justified working as tech person for a brewery. I am no scholar but it's not logical bro

16 күн бұрын

@@MuslimMoneyTalk wrong.

@smushtaq Ай бұрын

All these companies seem to be targeting the individual market. How does this apply to commercial? For ex. how can a developer wanting to build an apartment complex do so in a Sharia compliant manner?

@altruistization Ай бұрын

How long is the contract for buying the house , it cannot be perpetual ?

@rullah003 18 күн бұрын

You have a lease, typicially 20 years, and can renew if it expires. There is no obligation to buy equity.

@Bigly 29 күн бұрын

How is someone expected to pay rent + pay off x% capital of the house per month (no matter how small)? This solution is only for those taking home £5k+ per month imo where they'd have enough capital left over after paying rent to purchase more equity of the house.

@rullah003 18 күн бұрын

You get rental discounts each month if you stick to your payments, which makes the pricing competitive with mortgages.

@chillivisuals8683 Ай бұрын

I just used the pfida calculator. For a £400,000 house with £80,000 deposit. They have calculated a monthly payment of £2025. But it does not break down how much of that is rent and how much is equity purchase, thought its separate.

@ahadmotivator Ай бұрын

That must be just rent. What you pay on top is what’s going towards the house

@rullah003 18 күн бұрын

This figure includes rent plus equity. If you divide the 320k finance over the number of months, this gives you an indication of how much equity you'd beed to buy on average each monrh if there were no rent.

@mektrode 14 күн бұрын

@@chillivisuals8683 what is the time frame in years given for total equity for that target rent and does that rental amount include the “discount” we keep hearing about?