Ijarah Muntahia Bittamleek
إجارة منتهية بالتمليك
Pronunciation: ee-JAH-rah moon-TAH-hee-yah bit-tam-LEEK
Lease-to-own: a lease that ends with ownership transferring to the lessee by gift or sale.
Definition
A lease that ends in ownership, also called Ijarah wa Iqtina. The financier buys the asset (a home or car), leases it to the customer for a fixed term at an agreed rent, and commits through a separate promise to transfer title at the end, either as a gift, for a nominal price, or through gradual purchase during the term. During the lease the financier owns the asset and bears owner's risks such as uninsured loss, major structural repair, and property-level obligations, while the customer bears tenant-level costs and use.
It is the structure behind most U.S. halal lease-to-own home and auto financing, and AAOIFI Shariah Standard No. 9 governs it.
Related Terms
Ijaraإجارة
A lease or rental agreement - one of the three main halal home financing structures used in Canada
Musharakah Mutanaqisahمشاركة متناقصة
Diminishing partnership - a widely used halal home financing structure.
Murabahaمرابحة
A cost-plus sale where the seller discloses the original cost and adds a transparent, agreed-upon markup.
Halal Mortgage
A home financing arrangement structured to avoid interest (riba), typically using diminishing partnership or lease-to-own models.
Commodity Murabahaمرابحة السلع
A Murabaha transaction using commodities (often metals) as the underlying asset to facilitate cash financing.
Diminishing Partnershipمشاركة متناقصة
A co-ownership arrangement where the buyer gradually purchases the provider's share - a common halal home financing structure.
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See how Ijarah Muntahia Bittamleek is used in real Shariah-compliant financial products available in Canada
Further Reading
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Ijarah Muntahia Bittamleek (إجارة منتهية بالتمليك) - Lease-to-own: a lease that ends with ownership transferring to the lessee by gift or sale. A lease that ends in ownership, also called Ijarah wa Iqtina. The financier buys the asset (a home or car), leases it to the customer for a fixed term at an agreed rent, and commits through a separate promise to transfer title at the end, either as a gift, for a nominal price, or through gradual purchase during the term.
- Lease-to-own: a lease that ends with ownership transferring to the lessee by gift or sale.
- Category: Financing Structures
- Related: Ijara, Musharakah Mutanaqisah, Murabaha, Halal Mortgage, Commodity Murabaha, Diminishing Partnership
- Compare related Shariah-compliant products on HalalWallet
Source: HalalWallet (halalwallet.ca)
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Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-10-01
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