Assalam alaikum,

I have a loan through LaRiba for my home and I recently saw your fatwa on LaRiba saying that their model is not Sharia-compliant. Can you please provide more detail on their loan model, and why their mortgage is not truly Sharia-compliant? Also, do you recommend any other financial institutions that offer true, Sharia-compliant home loans? Thanks.

Their contract is like any other conventional mortgage contract.

What they claim in their model is not applied in the contract itself; there is no indication of joint ownership, lease, or even purchasing their share of the property.

Each phase in the "diminishing partnership" Islamic mode of finance has its own duty and financial responsibility, but LaRiba does not assume any risk in their model. That is why dealing with LaRiba is explicit riba.