---
title: "Home finance | IslamicOpenFinance™"
description: "The longest contract a household signs, with ownership changing hands every month. Diminishing musharakah, Ijarah muntahia bittamleek, Valuation and title evidence and more for Home finance on IslamicOpenFinance™."
url: https://islamicopenfinance.com/sectors/home-finance/
lang: en-GB
source: "IslamicOpenFinance"
---

> The longest contract a household signs, with ownership changing hands every month. Diminishing musharakah, Ijarah muntahia bittamleek, Valuation and title evidence and more for Home finance on IslamicOpenFinance™.

1. [Home](https://islamicopenfinance.com/)
2. [Sectors](https://islamicopenfinance.com/sectors/)
3. Home finance

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.

[Request a demo for this sector](https://islamicopenfinance.com/#start) See the live demo

Financial products

## What you build on IslamicOpenFinance™

1

### 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.

2

### 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.

3

### Valuation and title evidence

Valuation reports, title deeds and the joint-ownership record are attached to the contract as evidence.

4

### Property takaful

The owner's takaful on the property is arranged and tracked against the ownership shares.

5

### 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 buyer Islamic bank Valuer Developer or seller Land registry Takaful operator Shariah Supervisory Board

[Standard setters and regulators in the directory](https://islamicopenfinance.com/directory/?sector=home-finance)

Typical flow

## A typical flow, step by step

1. **Application**
2. **Valuation**
3. **Joint purchase**
4. **Lease of the financier's share**
5. **Monthly unit purchase and rent**
6. **Rent review**
7. **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

**Demo** All 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

## Key terms for this sector

[Diminishing musharakah](https://islamicopenfinance.com/glossary/diminishing-musharakah) [Ijarah muntahia bittamleek](https://islamicopenfinance.com/glossary/ijarah-muntahia-bittamleek) [Musharakah](https://islamicopenfinance.com/glossary/musharakah) [Ijarah](https://islamicopenfinance.com/glossary/ijarah) [Takaful](https://islamicopenfinance.com/glossary/takaful)

Other sectors

## Related sectors

[Consumer Auto finance Dealers want a decision at the showroom; the lessor has to own the car before the lease starts. - Ijarah at the dealer - Murabaha car finance - Lessor maintenance and takaful See the sector](https://islamicopenfinance.com/sectors/auto-finance/) [Consumer Hajj and Umrah travel and savings Pilgrims save for years; travel packages, quotas and dates all depend on the Hijri calendar. - Goal-based savings - Operator payments - Hijri-aware schedule See the sector](https://islamicopenfinance.com/sectors/hajj-umrah/) [Consumer Retail Islamic banking Customers expect instant, app-first banking; the contracts behind it still run on systems built for interest. - Murabaha personal financing - Qard and wadiah current accounts - Profit-sharing investment accounts See the sector](https://islamicopenfinance.com/sectors/retail-banking/)

## Build Home finance on IslamicOpenFinance™.

[Request a demo for this sector](https://islamicopenfinance.com/#start) [All sectors](https://islamicopenfinance.com/sectors/)