Assiniboine Credit Union introduces Islamic Mortgage

A new program at a local credit union aims to make it easier for members of Winnipeg’s Muslim community to own a home.

Assiniboine Credit Union says theirs is the first Islamic Mortgage of its kind in Canada — and it has been four years in the making.

The need for the special mortgage stems from an Islamic law, which forbids paying interest on money.

In the ACU deal, the credit union and the family share ownership of the home — with the family buying out the credit union’s share over a specified amount of time.

The family has exclusive rights to live in the home during that time, and in exchange the family pays the credit union a profit.

Assiniboine Credit Union will be offering the Islamic Mortgage as a pilot project over the next year — to see how the community responds.