Apartment financing exists because rental buildings are too big for a home mortgage and too specialized for most investors to fund with cash. In Canada, nearly all of that financing is interest-based. Ijara Community Development is one of the only halal routes to buying a full apartment building.
Ijara's multifamily program is available across Canada. It finances buildings of 8 to 300 units, from $1 million to $25 million, with 25% to 30% down. Non-recourse options are available. Start on the business financing hub.
Ready to compare halal options?
Who It Is For
- Investors moving up from duplexes and small rentals
- Families or partners pooling capital to buy a building
- Community groups building rental housing
- Experienced landlords who want to leave interest-based financing
If you are buying 2 to 4 units, that is a residential file. Read halal mortgages for duplex and multiplex properties instead.
Published Terms
| Item | Ijara CDC Multifamily |
|---|---|
| Where | Across Canada |
| Building size | 8 to 300 units |
| Amount | $1M to $25M |
| Down payment | 25% to 30% |
| Amortization | Long terms |
| Recourse | Non-recourse options available |
| Funding | 200+ commercial sources |
Non-recourse means that if the building fails, the funder looks to the property, not your personal assets. Ask whether your file qualifies, because it often depends on the building's income and your experience.
How the Contract Works
A single-asset trust buys the building and leases it to your company. Each payment splits between rent and an equity buyout. When the buyout is complete, title transfers to you.
That is the same trust-based ijara behind Ijara's home financing, scaled up. Your tenants pay you rent as usual. They never deal with the trust.
Which Ijara Commercial Program Fits
| Property | Program | Down payment |
|---|---|---|
| 8 to 300 unit apartments | Multifamily | 25% to 30% |
| Leased to a national credit tenant | Investor Gold CRE | 20% to 25% |
| Office, retail, industrial | Commercial Real Estate | 35% or more |
Investor Gold covers $2 million to $20 million with up to 20 years of amortization, for properties leased long-term to rated national tenants. The general commercial program runs $500,000 to $20 million and needs long-term leases in place. See halal commercial real estate financing.
Run the Building's Numbers
A building is only worth what its rent can support. Start with the gross rent, subtract vacancy, then subtract operating costs: property tax, insurance, utilities, repairs, and management. What is left is the net income that has to cover your payment.
- Gross rent from the current rent roll
- Minus vacancy and unpaid rent
- Minus taxes, insurance, utilities, and repairs
- Minus property management, even if you plan to self-manage
- Equals net income available for the payment
If the net income barely covers the payment, the deal is too thin. A boiler replacement or a few empty units can push it into a loss.
Another Option to Compare
Tjara Halal Financing offers commercial real estate financing in all 10 provinces through regulated funding partners. It does not publish terms, so you will need a quote. Read the Tjara review.
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Before You Apply
- A current rent roll and copies of leases
- Two to three years of operating statements
- A realistic budget for repairs and vacancy
- Your company's corporate documents
- Proof of your 25% to 30% down payment
Check provincial rent rules before you buy. Rent control in some provinces limits how fast you can raise rents, which affects how much the building can carry.
How the Process Usually Runs
- Sign a purchase agreement with a financing condition
- Send Ijara the building's financials and your company documents
- Ijara sources the financing through its commercial network
- Appraisal and building inspection
- You close with a commercial real estate lawyer
Frequently Asked Questions
Can I get halal financing for an apartment building in Canada?
Yes. Ijara CDC finances apartment buildings of 8 to 300 units across Canada, from $1 million to $25 million.
How much down payment do I need for a halal apartment building?
Ijara publishes 25% to 30% down on its multifamily program.
Is halal multifamily financing non-recourse?
Non-recourse options are available. Whether your file qualifies depends on the building and your profile.
What about a 5 or 6 unit building?
Ijara's Canadian multifamily program starts at 8 units. For smaller buildings, ask Ijara which program fits, and read the duplex and multiplex guide.
Can I buy an apartment building through my corporation?
Yes. The trust leases the building to your organization. Have your corporate documents ready.
Compare providers in your state
See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
If you are ready to buy a whole building, ask Ijara CDC for a multifamily quote and compare it with Tjara. Start on the business financing hub.
