Salamu Aleikum, I am living in Canada and there is a new company gets recently approved to do islamic home financing here. The name of the company is: IjaraLoans and their website is ijaracanada.com. I would like to know whether this company is shariaa compliant since they are getting the funds from a regular bank. They are like a third party between the buyer and the regular bank. Could you please check their website. Jazaka Allahu khayran Adlane

Alhamdu Lillah

Without reading the actual contract and all other affiliated supporting and legal documents, it is hard to determine the status of the transaction.

However, the company in question is headquartered in the US, it is a (broker) and not a financier in the market. This entails that the client goes through the process of getting a conventional loan first, and after the money is borrowed with interest, Ijara loan  get involved by establishing  a ( trust)and starting the (lease to purchase) mode of finance. Obviously, the whole contract is not valid and Haram as the interest-loan has been issued and the Riba is already calculated. Any remedy taken afterward is void as the damage is irreparable!

The above is proven by a simple fact, which is the requirement of signing the paperwork with the conventional mortgage company and with Ijara together.

In Islamic finance, It is obvious that the land lord is the only one who could lease his property to a tenant. If Ijara is the exclusive owner, then why the mortgage company is still involved? And its approval is essential to proceed with the transaction?

If the same scenario is what Ijara is applying in Canada, then their model is not valid.