A Murabaha car financing contract in Canada prices the car as cost plus a fixed mark-up, repaid in equal instalments, and on 9 September 2026 not one Canadian provider published that mark-up. Muevmnt Financial publishes limits (up to $50,000, 0% down, 6 to 60 months) but no rate; Halal Car Financing in Edmonton says costs and profit are built into the monthly payment; IjaraCDC publishes a $349 fee plus $10 a month for converting an existing loan. So the honest way to show what a $35,000 car costs per month is to build the payment from stated inputs: at an illustrative 7% profit-rate equivalent over 60 months it is about $693, with total mark-up near $6,583. Start from the auto financing hub.
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How a Murabaha price is built, and how to compare it with an APR
In a Murabaha the financier buys the car for a known cost, adds a profit that is fixed in dollars at signing, and sells it to you for the total, payable over an agreed number of months. Three inputs decide the payment: the amount financed (price plus tax and fees, less your down payment), the term, and the mark-up. Because the mark-up is a dollar figure fixed on day one, it cannot rise if you pay late and does not fall if you pay early unless the contract grants a rebate; Halal Car Financing's site, for example, says early payout is penalty-free, which means you stop paying instalments but the contract should state whether unearned profit is forgiven.
To compare a Murabaha quote with the dealer's conventional offer, convert both to a total cost and, if you want a single number, to an annual rate equivalent. Any loan calculator will do it: enter the amount financed, the term and the monthly payment, and solve for the rate. Eqraz's FAQ, written for its home product, explains why halal providers worldwide quote in percentages at all: a percentage rate lets a customer make an apples-to-apples comparison between the cost of halal financing and a conventional product and does not indicate that any interest is involved. The same logic applies to a car. The rate equivalent is a comparison tool; the contract is a sale.
What each Canadian provider actually publishes
| Provider | What is published | Rate or mark-up | Province |
|---|---|---|---|
| Muevmnt Financial | Up to $50,000; 0% down; 6 to 60 months; asset-backed and profit-sharing models; apply online or call | Quote-only | Nationwide, per muevmnt.com |
| Halal Car Financing (Northside Nissan) | Dealer buys and resells at an agreed profit margin; 5% to 10% typical down; no financing limits; penalty-free extra payments and payout; same-day funding case by case | Quote-only: costs and profit built into the monthly payment, and the site says costs may be slightly higher than bank financing | Alberta |
| IjaraCDC | Auto Conversion of an existing car loan into an Ijara; purchase financing not yet published for Canada | One-time $349 plus $10 per month administration | All provinces |
| Tjara Halal Financing | Home, commercial and business financing; cars only through home equity | Quote-only; 1% administration fee on home files without its agent | All provinces for home products |
| Dealership programs (Go Auto group) | Dealer-side halal programs; terms vary by store | Quote-only | Alberta |
The practical consequence is that Muevmnt Financial is the first written quote for most buyers, Halal Car Financing is a second quote for Albertans who can visit the Manning Drive dealership, and IjaraCDC is the route for a loan you already hold rather than a purchase. Tjara Halal Financing is a home financier; our comparison of IjaraCDC and Muevmnt for auto financing covers the two national names side by side. Ask every provider for the same three figures in writing: amount financed, number of payments, and payment amount. Everything else can be derived.
Worked monthly examples (illustrative, not quotes)
Because no rate is published, the figures below are built with a standard amortization formula at two illustrative profit-rate equivalents, 7% and 9%, over 48 and 60 months. The amounts financed are $25,000 and $35,000 after any down payment and including tax. We checked the formula against the FCAC's own example on canada.ca, which gives a $25,000 car at 5% over 36 months a total cost of $26,974 and over 84 months $29,681; the formula reproduces both. A real Muevmnt or dealership quote may sit above or below these bands, and Halal Car Financing's site says its costs may be slightly higher than bank financing because it lacks low-cost bank funding.
| Amount financed | Term | At 7% equivalent: payment and total mark-up | At 9% equivalent: payment and total mark-up |
|---|---|---|---|
| $25,000 | 48 months | $599 per month; $3,735 mark-up; $28,735 total | $622 per month; $4,862 mark-up; $29,862 total |
| $25,000 | 60 months | $495 per month; $4,702 mark-up; $29,702 total | $519 per month; $6,138 mark-up; $31,138 total |
| $35,000 | 48 months | $838 per month; $5,230 mark-up; $40,230 total | $871 per month; $6,807 mark-up; $41,807 total |
| $35,000 | 60 months | $693 per month; $6,583 mark-up; $41,583 total | $727 per month; $8,593 mark-up; $43,593 total |
Two things to notice. Stretching from 48 to 60 months cuts the $35,000 payment by about $145 at 7% but adds about $1,350 of mark-up, and the FCAC's 84-month example shows the same effect at the extreme: $2,707 more for the same car than at 36 months. And the difference between a 7% and a 9% quote on $35,000 over 60 months is roughly $2,000 of total cost, which is the size of saving a second written quote can produce. In Ontario, a $35,000 car carries $4,550 of HST, so the amount financed with nothing down is $39,550; at 8% over 60 months that is about $802 a month, which is why the tax section below matters as much as the rate.
Fees: administration, lien registration, late payment and early payoff
No Canadian halal car financier publishes a fee schedule, so each line below is what the sites say and what to ask. Administration fees: Muevmnt and Halal Car Financing publish none for cars; Tjara publishes a 1% administration fee on home files only where its own agent is not used; IjaraCDC's conversion fee is $349 plus $10 a month. Lien registration: a financier that retains an interest in the car will register it under the province's personal property security registry (the RDPRM in Quebec), and the registration cost is normally passed through; no provider publishes the amount, so ask for it as a line item. Late payment: Halal Car Financing's site is silent, Muevmnt's is silent, and the model to insist on is the one Tjara and Eqraz publish for their home products, where any late charge is donated to charity rather than kept as profit. Early payoff: Halal Car Financing says extra payments and full payout are penalty-free; Muevmnt does not say; IjaraCDC's home FAQ describes an early termination fee of about three months' rent above a 10% to 20% annual prepayment allowance, and you should ask whether the same applies to a converted car loan.
- Ask whether early payout forgives the unearned portion of the mark-up or only ends the instalments; the two produce very different totals.
- Ask what happens on a missed payment in dollars, who receives any charge, and whether it is donated.
- Ask for the PPSA or RDPRM registration fee and any discharge fee as separate lines on the quote.
- Ask whether the quoted amount financed includes tax, delivery, extended warranty or insurance, and strip out anything you did not choose.
- Ask for the sales contract and the financing contract together, so you can confirm the financier actually bought the car before selling it to you.
GST, HST, PST and QST on the car by province
Sales tax is paid on the vehicle price and is usually rolled into the amount financed, so it affects the payment more than most readers expect. The CRA's GST/HST calculator page on canada.ca, read on 9 September 2026, lists the rates by province; Nova Scotia's HST fell to 14% on April 1, 2025. The table applies each rate to a $35,000 vehicle price. British Columbia taxes vehicles under its own PST schedule, which has price tiers; the gov.bc.ca vehicle pages would not load on the fetch date, so confirm the PST for your price band from Bulletin PST 308 before comparing quotes. Whether the Murabaha mark-up itself attracts GST or HST depends on how the contract is papered, and no provider publishes a sample invoice; ask whether tax is calculated on the vehicle price alone or on the vehicle price plus mark-up.
| Province | Tax on a vehicle purchase | Tax on a $35,000 car | Price plus tax |
|---|---|---|---|
| Alberta | 5% GST, no provincial sales tax | $1,750 | $36,750 |
| Ontario | 13% HST | $4,550 | $39,550 |
| Quebec | 5% GST plus 9.975% QST | $1,750 plus $3,491.25 | $40,241.25 |
| British Columbia | 5% GST plus PST under the vehicle schedule (tiered by price) | $1,750 plus PST to confirm | $36,750 plus PST |
| Manitoba | 5% GST plus 7% PST | $1,750 plus $2,450 | $39,200 |
| Saskatchewan | 5% GST plus 6% PST | $1,750 plus $2,100 | $38,850 |
| Nova Scotia | 14% HST since April 1, 2025 | $4,900 | $39,900 |
| New Brunswick, Newfoundland and Labrador, PEI | 15% HST | $5,250 | $40,250 |
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Verdict: which provider to approach first, by province
In Ontario, get a written Muevmnt quote with the three figures, then price the same car conventionally at the dealer to establish the cash price and the HST, and compare total cost; there is no Ontario dealership with a published halal program, and Tjara should be called only for a home. In Alberta, do both: Muevmnt by phone and Halal Car Financing in person at Northside Nissan, asking the dealership for the contract sequence and the name of its certifying scholar in writing, since none is published; Go Auto stores are a third quote. In British Columbia, Muevmnt's nationwide claim makes it the first call, confirm the tiered PST before you compare, and expect no local dealership program. In Quebec, ask Muevmnt specifically whether it contracts in Quebec and in French, whether the lien is registered at the RDPRM, and how QST is applied to the mark-up; our Quebec halal car financing guide covers the provincial options. Everywhere, if you already hold a conventional loan, IjaraCDC's conversion at $349 plus $10 a month is the documented route, and the ruling behind all of this is on our is financing a car haram page. Facts checked against muevmnt.com, halalcarfinancing.ca, ijaracdc.com, tjara.ca, eqraz.com, canada.ca on September 9, 2026.
Frequently asked questions
What are halal car financing rates in Canada right now?
None are published. As of 9 September 2026 Muevmnt, Halal Car Financing and IjaraCDC publish limits, terms and fees but no profit rate or mark-up, and Halal Car Financing says its costs may be slightly higher than bank financing. Get a written quote with amount financed, number of payments and payment amount, then compute the total cost and a rate equivalent yourself.
How much is a $35,000 halal car loan per month?
There is no halal car loan, only a sale; but on $35,000 financed, an illustrative 7% profit-rate equivalent gives about $838 a month over 48 months or $693 over 60, with total mark-up of roughly $5,230 and $6,583. At 9% the figures are about $871 and $727. Add provincial sales tax to the amount financed before you run the numbers; in Ontario that is another $4,550.
Is the Murabaha mark-up just interest with another name?
No, if the contract is what it claims. In a Murabaha the financier buys the car and sells it to you at a fixed total price; the profit is fixed in dollars at signing, cannot grow on a late payment, and is earned from a sale, not from lending money. Quoting the mark-up as a percentage is a comparison convenience, as Eqraz's FAQ explains for its home product. If the contract charges more when you are late, it is not a Murabaha.
Do I pay HST on the mark-up as well as the car?
The CRA's rate table gives the provincial rate on the vehicle, 13% in Ontario, 5% in Alberta, 15% in the Atlantic HST provinces except Nova Scotia at 14%, but says nothing about Murabaha mark-ups. How the tax is applied depends on how the provider papers the sale, and no Canadian provider publishes a sample invoice. Ask whether tax is calculated on the vehicle price alone or on the vehicle price plus mark-up before accepting a quote.
Can I get Murabaha car financing with 0% down?
Muevmnt's homepage advertises 0% down on auto approvals up to $50,000. Halal Car Financing says a down payment of typically 5% to 10% initiates the purchase. With nothing down the amount financed includes the full price and tax, so a $35,000 car in Ontario becomes $39,550 financed; a larger down payment reduces both the payment and the dollar mark-up.
Compare providers in your province
See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
Is it cheaper to take a longer term?
Cheaper per month, more expensive in total. On $35,000 at an illustrative 7%, moving from 48 to 60 months lowers the payment by about $145 but raises the total mark-up by about $1,350. The FCAC's example on canada.ca shows a $25,000 car costing $2,707 more over 84 months than over 36. Choose the shortest term the budget can carry.
