| The question facing money-lenders who recognize the | | | | small Ontario company since 2007. That company |
| huge purchasing power of one of the most rapidly | | | | claims to have a 5,000-person waiting list. It is difficult to |
| growing religions in Canada - Muslims - is, how do you | | | | dispute or challenge that claim, given that 23% of |
| lend money to someone whose religious beliefs ban | | | | Canadian Muslims call Ontario "home." |
| the creation of money by money? | | | | Also in 2007, the Bank of Nova Scotia and the |
| Not unlike the Christian faith, Islamic law takes a dim | | | | Toronto Dominion Bank began active exploration of |
| view of usury. In the Islamic world, the charging or | | | | the viability of providing mortgages that meet the |
| paying of interest is equated to usury. So, a | | | | requirements of those of the Islamic faith. In 2010, the |
| conventional loan or mortgage would violate the | | | | Assiniboine Credit Union in Winnipeg began offering its |
| teachings of the Koran. On the other hand, the Koran | | | | version of the Muslim mortgage. It is too soon to gauge |
| does allow money to be used in trading or investing, to | | | | how well these products will be received. |
| generate a profit. Specifically, Islamic beliefs allow for | | | | A major impediment to the success of the mortgage |
| investment based on "partnerships," in which risk and | | | | concept is the CMHC insurance that is required on |
| profit are shared by the parties. | | | | most home loans with less than 25% equity. A study |
| For the past six years, United Kingdom banks have | | | | commissioned by the Canada Mortgage & Housing |
| been offering a form of Muslim mortgage, based on | | | | Corporation in 2007, and released this January, states |
| two Islamic principles of Ijara and Mudaraba. | | | | emphatically, "CMHC Insurance business has no plans |
| Canada and the USA have entered the Islamic | | | | to insure Shari'a mortgages." It goes on to say that |
| mortgage market slowly; a surprise given that the | | | | "(there is) little empirical evidence based on a sound |
| number of Muslims in Canada in 2006 was estimated | | | | methodology assumptions exists to accurately project |
| at 783,700, and expected to grow by over 160% by | | | | what portion of the Canadian population would be |
| 2017. | | | | interested in [using] Shari'a-compliant financing. |
| Indeed, Muslim mortgages have been offered by one | | | | |