Servus Credit Union is rolling out its Halal Mortgage this fall through a new wholly owned subsidiary, Servus Halal. The product is a clever workaround to paying interest, which is banned by Sharia law.
The structure caps loan-to-value at 80% with fixed monthly payments stretched over 25 years (because even divine finance appreciates predictable cash flows).
Servus's new offering is what Islamic finance calls a "Murabaha agreement," which means:
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