If you want to buy a home in Canada without a conventional interest-bearing mortgage, you have 4 halal home financing providers to choose from in 2026: Manzil, Eqraz, Tjara Halal Financing, and IjaraCDC. Together they cover most Canadian provinces, with down payments starting at 5% and financing available up to $2 million. This guide breaks down exactly what each provider offers, which provinces they serve, and who each one is right for.
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What makes home financing halal
A conventional mortgage charges interest (riba), which Islamic law prohibits. Halal home financing replaces interest with a Shariah-compliant structure. Canada's active providers use three different structures, so it's worth understanding each before choosing.
Diminishing musharaka is a co-ownership arrangement. You and the financing company buy the property together, and you gradually purchase the company's share over time. Monthly payments cover rent on the share you don't yet own plus an equity-building component. Manzil and Tjara both use this structure.
Murabaha is a purchase-resale arrangement. The financing company buys the property and sells it to you at a pre-agreed price that includes their profit margin. The total cost is fixed upfront. Eqraz uses murabaha.
Ijara is a lease-to-own model. The financing company owns the property and leases it to you, with a portion of each payment going toward eventual ownership. IjaraCDC uses this structure and is HalalWallet's currently recommended Canadian halal home financing partner.
The 4 halal home financing providers in Canada
Manzil uses diminishing musharaka and serves Ontario, Alberta, and British Columbia. They require a 20% minimum down payment and a credit score of at least 680. Financing goes up to $1.5 million over terms up to 25 years. Manzil also offers halal registered accounts (TFSA, RRSP, RRIF, LIRA) and wealth management, making them the most full-service halal financial provider in Canada. They operate under a formal Shariah supervisory board.
Eqraz uses murabaha and covers 10 provinces: Ontario, Quebec, British Columbia, Alberta, Manitoba, Saskatchewan, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island. They require 20% down and a minimum 700 credit score, with financing from $100,000 to $1.25 million. Eqraz's Shariah compliance is certified by the Shariyah Review Bureau, with scholars including Sheikh Faraz Adam providing oversight.
Tjara Halal Financing uses diminishing musharaka across those same 10 provinces. Their standout feature: 5% minimum down payment, the lowest available from any Canadian halal provider. Financing goes up to $1 million. They typically close in 21 days, the fastest of any Canadian halal lender. Tjara's Shariah board includes Dr. Aznan Hasan, Mufti Muhammad Muaz Ashraf Usmani, and Dr. Mohamad Akram Laldin. One thing to note: they don't accept online applications.
IjaraCDC uses the ijara structure and covers the same 10 provinces as Eqraz and Tjara. They also accept 5% down and finance from $100,000 to $2 million, the highest ceiling of any Canadian halal provider. IjaraCDC's Shariah Advisory Board is chaired by Mufti Muneer Akhoon. Their product is for owner-occupied homes.
Which provinces each provider serves
Eqraz, Tjara, and IjaraCDC all operate across Ontario, Quebec, British Columbia, Alberta, Manitoba, Saskatchewan, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island. Manzil is limited to Ontario, Alberta, and British Columbia.
If you're in Manitoba, Saskatchewan, the Atlantic provinces, or Quebec, Manzil is not an option. Eqraz, Tjara, and IjaraCDC all serve those provinces. For anyone in Ontario, Alberta, or BC, all 4 providers are on the table.
Down payment and credit score requirements
Two providers require 20% down: Manzil (minimum 680 credit score) and Eqraz (minimum 700 credit score). Two providers accept 5% down: Tjara and IjaraCDC. If your down payment is below 20%, Tjara and IjaraCDC are your realistic options.
At 5% down in Canada, CMHC mortgage insurance typically applies to conventional mortgages. How each halal provider handles their product alongside CMHC requirements varies, so confirm directly with Tjara or IjaraCDC before assuming insurability.
Fees to expect
Manzil's fees include a 2% administration fee, legal fees, an appraisal fee, a $1,000 investment portfolio contribution, and land transfer tax. Eqraz has a detailed fee schedule: a $75 hold payment, $200 early renewal fees, a $95 returned payment fee, and provincial transfer fees ranging from $0 to $200 depending on the province. Tjara charges a prepayment administration fee; their full schedule isn't publicly listed. IjaraCDC's specific fees require direct inquiry.
Get complete fee disclosure in writing before committing to any provider. The total cost of financing matters, not just the monthly payment.
Which provider fits your situation
If you're in Ontario, Alberta, or BC with 20% down and want the most full-service halal provider: Manzil. They're the only option that bundles home financing with registered accounts and wealth management.
If you have 20% down and want coverage across 10 provinces or prefer a murabaha structure: Eqraz, with independent third-party Shariah certification.
If you need 5% down and want the fastest close: Tjara closes in 21 days on average. Call them directly since they don't have an online application.
If you need 5% down, want the highest financing ceiling, or prefer the ijara structure: IjaraCDC is the strongest fit. $2 million maximum and 10-province coverage make them the most flexible option for buyers with smaller down payments.
For a full look at all Canadian halal home financing options in one place, visit HalalWallet's home financing hub.
Frequently asked questions
Is halal home financing more expensive than a conventional mortgage in Canada?
It depends on the provider, the structure, and the fees involved. Some buyers find the total cost comparable to a conventional mortgage once all fees are factored in; others find it slightly higher. The structure is different from a conventional mortgage by design, so the comparison isn't always straightforward. Get a full written quote from any provider before drawing conclusions.
Can I use halal home financing for an investment property in Canada?
Manzil explicitly supports investment properties. IjaraCDC's residential product is limited to owner-occupied homes. Eqraz and Tjara's investment property policies should be confirmed directly. If investment properties are your goal, start with Manzil.
Do halal mortgages in Canada qualify for CMHC insurance?
This varies by provider and structure. Confirm with any provider you're considering whether their product is CMHC-insurable at your down payment level, since the answer can depend on how the financing is structured legally.
Can I refinance a conventional mortgage into a halal one in Canada?
Manzil, Eqraz, and IjaraCDC all offer refinancing. Tjara's refinancing availability isn't publicly confirmed. If you're switching from a conventional mortgage, contact providers directly to understand the process and any associated fees.
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.
How do I know which Shariah structure is right for me?
All three structures (musharaka, murabaha, ijara) are considered Shariah-compliant by their respective scholarly boards. For most buyers the practical differences come down to how payments are structured and what happens at end of term. If you have a specific preference based on Islamic jurisprudence, consulting a scholar before choosing a provider is a reasonable step.
