Diminishing musharakah
The home is bought jointly; the customer buys the financier's units over time and the rent on the financier's share falls with each purchase.
Consumer
Home finance
The longest contract a household signs, with ownership changing hands every month.
Islamic home finance is commonly structured as diminishing musharakah or as ijarah ending in ownership. Both involve joint or lessor ownership, rent that changes as shares move, and obligations such as major maintenance and the property's takaful. IslamicOpenFinance™ keeps the shares, the rent and the obligations in one model from application to final transfer.
Financial products
What you build on IslamicOpenFinance™
Ijarah muntahia bittamleek
The financier owns and leases the home, with ownership passing at the end by a separate sale or gift as the contract provides.
Valuation and title evidence
Valuation reports, title deeds and the joint-ownership record are attached to the contract as evidence.
Property takaful
The owner's takaful on the property is arranged and tracked against the ownership shares.
Rent review
Rent resets follow the published benchmark and dates in the contract, with the customer notified in advance.
Value chain
The actors in this chain
IslamicOpenFinance™ connects them with one contract model, one policy and one evidence trail.
Home buyerIslamic bankValuerDeveloper or sellerLand registryTakaful operatorShariah Supervisory Board
Typical flow
A typical flow, step by step
- Application
- Valuation
- Joint purchase
- Lease of the financier's share
- Monthly unit purchase and rent
- Rent review
- Final transfer
Live demo
See it in the terminal
A home held 80:20 by Qantara Islamic Bank and Layla (demo): each month a unit moves to Layla and the rent on the bank's share falls. Demo data
DemoAll institutions, people, amounts and events are fictional demonstration data. Nothing here is a Shariah ruling, an offer or advice; approving a product is for each institution's own Shariah board and regulator.
Glossary