A halal mortgage is a mortgage that is compliant with Shariah law (i.e., not ‘haram’), and that means no interest payments on loans.

While this sounds incredibly unfair to non-Muslims—and under certain arrangements, it could be—generally, halal mortgages cost prospective homeowners more than conventional mortgages would, as lenders have to adjust loan payments for increased risk.

In general, there are three types of halal mortgages provided by Islamic banks (which Canada is apparently going to be adopting soon): Murabaha, Ijara, and Musharaka.