For many prospective homebuyers in Canada, obtaining a mortgage can be a challenge due to elevated home prices. But for members of Canada’s Muslim community, those looking to purchase a home may be faced with an additional barrier – securing a mortgage that aligns with their faith.

Shariah, the body of Islamic religious law, prohibits the use of riba, otherwise known as interest charged on loans. As a result, conventional mortgages offered by Canadian banks, which charge clients interest, are not considered Shariah-compliant, or halal.

Mohamad Sawwaf is the co-founder and CEO of Manzil, an Islamic financial institution based in Toronto. Because major Canadian banks do not currently offer Shariah-compliant mortgages, this leaves many members of the Muslim community “financially excluded” from obtaining one, Sawwaf said.

“They’re basically keeping themselves outside of this conventional banking system because it doesn’t align with their religious or ethical principles, and so it becomes very difficult to access financing,” Sawwaf told CTVNews.ca in a telephone interview on Oct. 13. “Not everyone is receiving equal benefit when it comes to banking.”

According to Statistics Canada, Islam is the second-most commonly reported religion in Canada, with nearly 1.8 million people as of 2021. In the span of 20 years, Canada’s Muslim population grew to 4.9 per cent in 2021 from two per cent in 2001.

Companies such as Manzil and the Canadian Halal Financial Corporation based in Alberta offer financial alternatives they say are considered halal.

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