In the abstract, this is a good thing. It’s the government making an accommodation for religion in a manner that doesn’t interfere with anyone else’s rights. My only complaint is that the Canadian government would never do this for Christians and in fact would do the opposite if they could.
Here’s how a Sharia-compliant mortgage works:
“The Musharaka model involves co-ownership between the home buyer and the financing company. Both parties invest in a property and purchase the home together.
In a variation called Diminishing Musharakah, or the Declining Balance Method, the home buyer gradually acquires the financier’s stake in the property while paying a fee to utilize the portion still owned by the financier. Diminishing Musharakah is considered the most favorable option.
In this case, initially, each party owns a share of the home proportional to the amount they contributed. Over time, the buyer’s ownership stake increases while the company’s share decreases until the buyer owns the entire property.
The buyer maintains full ownership rights for the property from the start, like any other homeowner. The rights and responsibilities of each party are clearly defined in the contract, with special protections provided to the buyer that do not exist in a traditional mortgage.
The Musharaka method aligns perfectly with the principles of Islamic law as well as the goals of homeowners in the U.S., making it the most attractive option.”
Sounds like trying to fool Allah with tricky accounting, like how some Medieval currency exchange contracts were written to avoid usury laws. I’ll give you 100 gold florins today for 110 gold marks one year from now, but marks and florins are of equal value so the extra 10 is hidden interest in a loan.