Masjid financing exists because communities outgrow their buildings faster than they can fundraise. A congregation praying in a rented hall, or an Islamic school with a waiting list, often needs a property now and has only part of the money. Two providers offer riba-free financing for Canadian non-profits: Ijara Community Development and Tjara Halal Financing.
Both are available across Canada. Ijara publishes its terms: $300,000 to $7 million for established organizations, with 30% down. Tjara works by referral and quotes each project individually. Start on the business financing hub.
Ready to compare halal options?
Who This Is For
- Masjids buying, building, or expanding a property
- Islamic schools that need classrooms or a permanent campus
- Muslim charities and community centres
- Boards that want growth capital without a conventional bank loan
Ijara CDC Non-Profit Financing
Ijara splits its non-profit program into two tracks. Established organizations get larger amounts and lower down payments. Newer organizations can still qualify, but with more cash up front and personal guarantees from leaders.
| Item | Established organization | New organization |
|---|---|---|
| Amount | $300K to $7M | $300K to $1M |
| Down payment | 30% | 30% to 40% |
| Term | Up to 20 years, 10-year balloon | Quoted |
| Construction | Up to 12 months with no payments | Quoted |
| Personal guarantees | Can be avoided | Required |
The 12 months with no payments during construction matters for a building project. Your community can finish the build before payments start.
A 10-year balloon means a large remaining balance comes due at year 10. Plan for that from day one, either through a fundraising campaign or a renewal.
Tjara Non-Profit Financing
Tjara describes itself as a non-profit. It refers projects to regulated Canadian funding partners who are contractually bound to halal terms. Oversight comes from a named three-scholar Shariah board: Prof. Dr. Mohamad Akram Laldin, Dr. Aznan Hasan, and Mufti Muaz Ashraf Usmani. Tjara publishes a 2023 musharakah fatwa, and late fees are donated to charity under AAOIFI standards.
Tjara does not publish amounts or rates for this program. You apply through a contact form and terms come back with the quote. Read the Tjara review for more on how the firm works.
Ijara vs Tjara at a Glance
| Item | Ijara CDC | Tjara |
|---|---|---|
| Where | Canada-wide | All 10 provinces |
| Terms published | Yes | No |
| Model | Direct program | Referral to funding partners |
| Shariah oversight | Board chaired by Mufti Muneer Akhoon | Three-scholar board |
Get both quotes. A board should compare the total cost over the full term, not just the monthly payment.
Planning for the 30% Down Payment
Thirty percent is the hurdle most communities struggle with. On a $2 million building, that is $600,000 before financing starts. Many masjids run a capital campaign for the down payment and finance the rest.
Some communities also use qard hasan pledges from members, where families lend money interest-free and are repaid over time. If you do this, document every pledge in writing so your financials are clear when the provider reviews them.
How the Process Usually Runs
- The board identifies the property and sets a total budget
- You gather financials, registration documents, and a fundraising plan
- You apply to Ijara directly and to Tjara through its contact form
- Each provider reviews the organization and the property
- You compare written terms, and the board votes
- You close with a lawyer, as with any commercial property
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Give the process time. A board vote, a fundraising campaign, and a commercial closing rarely fit into a few weeks. Start conversations with providers before you make an offer on a building.
Before Your Board Applies
- Audited or reviewed financial statements for recent years
- Proof of registered charity or non-profit status
- A clear property budget, including renovation or construction
- A fundraising plan for the down payment and any balloon
- Board resolution authorizing the financing
If the property is commercial or mixed use, see halal commercial real estate financing as well.
Frequently Asked Questions
Can a masjid get halal financing in Canada?
Yes. Ijara CDC offers non-profit financing for masjids, Islamic schools, and Muslim non-profits, and Tjara offers non-profit organization financing through regulated funding partners.
How much down payment does a masjid need?
Ijara publishes 30% for established organizations and 30% to 40% for new ones. Tjara quotes each project individually.
Do board members have to personally guarantee the financing?
With Ijara, established organizations can avoid personal guarantees. New organizations must provide them.
Can we finance construction of a new masjid?
Yes. Ijara allows up to 12 months of no payments during construction for established organizations.
How much can an Islamic school borrow?
Ijara finances $300,000 to $7 million for established organizations and $300,000 to $1 million for new ones.
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 your community is ready to buy or build, get quotes from both Ijara CDC and Tjara. Bring your financials and fundraising plan. Compare options on the business financing hub.
