Zero Mortgagezero-risk mortgage
Funding is currently not available in Quebec, but will be available in the near-term.
What does your products do? To what extent does halal finance differ from traditional finance? Halal's principal distinction from the traditional funding options is that Halal funding eliminates interest-based operations and uses a partnering approach to funding rather than raising cash for interest. A Halal mortgage is offered through the partner relationship agreement system Mosharakah.
Mosharakah is a partner ing scheme where Zero (or partner) and a customer come to an agreement on a type of joint title different from an interest-based mortgage. Instead of lending for interest (which is forbidden in Islam), you buy real estate with a decreasing Mosharakah agreement, with a down-fee from you.
Their name is on the titles and you enjoys the exclusive use of the real estate against monetary repayments, existing of a lump amount and a house payment amount. There is a percentage of profits you must make in order to use the Zero portion (or partners), but you must also make a payment on the amount of money (capital) in the real estate.
Zero (or partner) will reduce its own capital in the acquired assets through this agreement in exchange for periodic payment from you, eventually achieving 100% capital payback and Zero moving away from the real estate. The most important bans we must abstain from when we structure our half-life finance areiba ( "interest"), insecurity in our contracts, gaming and commitments to share profits and risks directly related to our mode.
Whereas traditional funding is forbidden due to the fact that the collection of interest (usury) is haram, halal funding is allowed, as Allah Ta'ala explains in part of the following Qur'an Ayah: A further distinction is that traditional banking lends and transfers the entire exposure to a lender, while in a partner relationship scheme the exposure and return is divided between the parties, in which case Zero in certain cases divides the exposure with the homeowner.
Keep in mind that this is not a contract where buyers and sellers consent to buy the real estate and divide the profits and loss. Rather, this offering is conceived in such a way that the purchaser makes major home payments that decrease the percentage of zero (or partners) in the real estate until finally 100% home is purchased.
Our products are conceived in such a way that if a customer borrows a traditional mortgage or a Halalth mortgage, the net costs and safety are very similar. Musharakah Agreement has been completed and may be submitted to any courts of law. So who owns the place?
Is it possible to buy the property and / or make changes? The name of the company is in the name of the customer. The Zero (or partner) registered our capital in the company through a first mortgage on the security. So you can yourselves keep all the profits and make enhancements that do not affect the value of the property.
Under Halal's funding policy, profit and loss are split on the basis of the proportion of equity held. Our agreement includes a buy-out warrant, which allows you to buy our stock out of the Musharakah agreement before selling it. It is possible to convert the building or lease part of it.
There is no need to ask Zero for approval, as you would with other funding alternatives available in Canada. But if you make changes that have a negative impact on the value of the home, it would be necessary to bring it back to the state it was in before the change.
To whom do I pay? Are Zero Mortgage's financial models new? The first thing you do is make a Musharkah deal between you and Zero Mortgage. Express reference shall be made in this Memorandum of Understanding to the amount of each month's principal and principal instalments. Pay directly to our finance partners.
There are Musharakah funding schemes in about 50 states. Most of our models are similar to the Guidance Residential products available in the USA. Our products are not a new one, but a globally launched in Canada. There are other Halal financings available in Canada, how do you differ from them?
Halal financing opportunities do not offer the same degree of proprietary and safety as our products. Customer may make enhancements and changes to the real estate without obtaining Zero's approval. There are no waits, member agreements, fiduciary deeds, additional registration charges or additional montly charges.
In addition, Zero has company arrangements in which our affiliates (financiers) have committed to comply with the Halal conditions. If a customer is not able to make a payment, they have declared their willingness not to benefit from delayed payment and to allow Zero to act as an agent. The Zero is the only company in Canada where donors have entered into such an arrangement.
Is it more expensive to fit your Halal finance products than a traditional creditor? Will there be extra starting or month charges? It will not take you more to rely on our Halal finance products as our prices are highly competitively priced and in some cases may be lower than other suppliers.
No entry fee or other montly fee will be charged outside the stipulated montly payment period. What is your margin policy? Each act is intentional, and our intent is that we enter into a Musharakah deal that does not involve an interest-based trade.
No interest is charged like traditional banking because we do not lend you cash; we buy the home as your ally. Winning rates as computed and available on our website are an amount we have negotiated with our affiliates. In addition, Zero works conscientiously with its counterparts to achieve competitively priced rates with traditional mortgage loans, which is allowed in Islam.
Your finance provider, as co-owner of the acquired real estate, will calculate your recurring periodic rental fees, comprising a fee for the purchase of more home ownership capital and a royalty fee for the sole use of the home, plus the Zero (or partner) interest. The Zero uses dominant geographic markets as a yardstick to measure prices that are competitively priced with other competing brands.
It will help us calculate the homeowner allowance and the winning amounts. As the Ethics Council declared in the fatwa, given the current situation of Halal Banking in Canada, this is the best available way to ensure competition in the price of this commodity. Price setting using this methodology does not alter the general halo characteristics of the products.
By selling the home, you keep all the winnings. However, there are some cases where we would suffer significant casualties for the home. Zero (and its partners) would suffer significant loss if the government-mandated policy were to expire or not be paid out. What is the purpose of the lender's mortgage documents using the words "interest" and "loan"?
Keep in mind that Halal Banking in Canada is a relatively new approach and the concepts we use such as Home Payment Amount and Profit Amount are not used in the latest Canada legislation. In Canada, all banks use the standardized mortgage loan form and credit term. Governments still need to authorize changes to these conditions to accommodate our products and others in which there is no interest.
Ethics Council has published the fatwa on our website, which states that due to the way it is financed in Canada, such disclosure can be used without affecting the Halal characteristics of the products. That is nothing new in Canada, the U.S.'s premier wholesale finance firm, Guidance Residential, allows customers in its worst case scenario to use the phrase interest in US legal documents.
By structuring the products in this way, we have been able to achieve the best prices for our customers in accordance with Canada's regulatory standards. The Group has already begun talks with the Canada authorities to identify alternatives to mortgage lending and modify traditional terms. Together with our business associates, we intend to implement these changes in the years to come.
If you consider that interest on arrears is not allowed in halal banks and takes unfair advantage of someone, how do you deal with it? Administrative expenses are permitted in the event of default in pay. The offsetting of delayed deliveries is not permitted. However, our affiliates have stipulated that any amount in excess of the administrative expenses incurred in charging interest on arrears will be given to a charitable organization in Canada as prescribed by our Ethics Council.
If I am not able to make my payment as arranged, what happens? However, we appreciate that unexpected events may cause you to be temporarily incapable of making your payment on a regular basis. You' d be in the standard version after two failed repayments. When you are in an emergency Zero will work with you to see what can be done.
The Zero can help you make a payment on your own account that needs to be paid back or, in the worse case, suggest letting or buying the cottage. I don't know how I know your lotion is half a brain. And how can I be sure that this really is halogen?
A Musharakah agreement is the least required requirement for our products. An agreement is concluded between two partners and we are ready to present ourselves in front of the courts as Musharakah partners. Musharakah Treaty is a juridical instrument that can be presented in front of a judge. Renowned scientists from international industry, who also have Phds, have published a Fatwa that clearly indicates that our products are Halal.
At Zero, we have made great efforts to make these fattywas available from renowned global industrial experts. Keep in mind that these academics have considerable financial expertise and have made these dictate decisions in good faith so that Muslims in Canada can receive half-funding as an alternate to traditional funding locally. A lot of scientists have also confirmed our products.
Ethics will continuously monitor the products. They will be pleased to know that the Ethics Board, chaired by Dr Aznan Hassan, will conduct annual reviews and make recommendation as necessary to keep the products tally. At Zero, we want to stick to the highest standards.
The Halal norms have been adopted and we are encouraging other businesses on the open to do the same. The AAOIFI Halal Standard states that each entity engaged in halal finance should have an autonomous three-member body that signs the AAOIFI Halal. What does home ownership finance through Zero look like? Are non-Muslims also eligible for your interest-free funding programme?
As soon as you have completed the request to initiate the trial, Zero will present our partners to you to help ease the loan approvals to you. Yes, our products are open to all Canadians. Are there halal financings all over Canada? Are there also possibilities for finance for commercial and leased objects? The Musharakah House Finance is available for any home throughout Canada, except in Quebec, which will be available soon.
However, you can lease part of the real estate, but you must stay in the same building that you are renting. Currently we are working on a commercially available solution and would like to invite you to visit us in the near term. The Zero has entered into a partnership with large Canada based organizations that have accepted our Halal conditions as established by our respected Ethics Council.
While we are in close dialogue with a number of global financial institutions, preferably a Halal bank, we are hoping to raise capital to penetrate the Canada in the near-term. Are there any limits on the amount of funding you will allow? The majority of mortgage payments can be done in just a few working day.
A useful function that can help you find the mortgage amount for which you can be qualified is the pocket calculator located on the Resources page of our website. You can use this machine to evaluate the value of the home you would be looking for on the basis of your household earnings.
Actually I have a mortgage with a traditional creditor. Is it possible to use Zero to refinance? Yes, we are pleased to help you re-finance your home through Zero. We even recommend that you get out of an interest-based mortgage as soon as possible in order to enable your home to receive half of its funding.
Am I qualifying for home equity finance through Zero? Every circumstance is different and the best way for us to respond to this is for you to give us your detailed information and talk to our people. In general, however, home ownership finance is aimed at those who generate a fixed level of revenue and can help buy the house by making a down payment.
However, if you are earning a fixed salary but do not have the necessary down payments or do not fulfill all of our requirements, we may still be able to provide you with 100% funding through our funded products that do not require a down payments. Please see the section of our website for more information on our mortgage loans business.
What amount of a down pay do I have to pay to be eligible for funding through Zero? No deposit is needed for our 100% funded products. For more information about this mortgage please click on 3Z Mortgage. Our Mosharakah House Finance products require you to pay at least 5% of the initial deposit for the less than $500,000 or at least 10% for the higher value real estate.
Sometimes we can help those who have less (less than 20%) to make the deposit. Do I have to owe a premium if I get my mortgage later? Yes, the mortgage agent can give us further information. Mortgage brokers will supply this information, but normally the charge would be about 15%-20%, please check the precise amount with them.
On behalf of our partner you have to take out your own policy. On the website, our catwa on the site allows you to use the traditional insurances until a tacaful is available. Are you offering funding for non-profit organisations (NPOs)? Is there any other advantage to funding through Zero? Let us help you zero your mortgage!
Which rules apply to Zero Mortgage transaction? 0zero is a recommendation operative. Our partner companies are responsible for the finance. Our Financial Services Commission of Ontario reguliert unsere Partner. Which kinds of halal finance product does Zero have? I' d like to schedule a meet with a Zero Mortgage Product Expert.
Great, we are pleased that you are interested in finding out more about our Zero Mortgage products.