Home Financing · Manzil
Manzil Musharaka Mortgage
Co-Founder & CEO, HalalWallet
Facts are re-verified against Manzil's published materials; this page updates when the provider's terms, rates, or coverage change.
Manzil's flagship halal mortgage: a fixed-rate diminishing Musharaka in which buyer and Manzil purchase the home as partners, the buyer holds title, and each payment buys back Manzil's ownership units while paying a profit rate on the share not yet owned. Manzil publishes an actual rate sheet - effective July 23, 2026: profit rates from 5.90% (2-year) to 6.20% (5-year fixed), maximum financing CAD $1,500,000 at up to 80% finance-to-value (20% minimum down), minimum 680 credit score, and amortization up to 25 years. Funding comes from the Manzil Mortgage Fund investor pool rather than bank credit lines, and contracts are certified by Manzil's Shariah Supervisory Board with external certification from Darul Iftaa Mahmudiyyah.
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What is the Manzil Musharaka Mortgage?
Manzil's flagship halal mortgage: a fixed-rate diminishing Musharaka in which buyer and Manzil purchase the home as partners, the buyer holds title, and each payment buys back Manzil's ownership units while paying a profit rate on the share not yet owned. 20% (5-year fixed), maximum financing CAD $1,500,000 at up to 80% finance-to-value (20% minimum down), minimum 680 credit score, and amortization up to 25 years.
- Contract structure: Diminishing Musharaka.
- Available in 4 provinces.
- Shariah oversight disclosed: Formal Board.
- HalalWallet Index grade for Manzil in Home Financing: A.
- Verified against Manzil's published materials on 2026-09-29.
Source: HalalWallet (halalwallet.ca)
Key facts
- Structure
- Diminishing Musharaka
- Maximum amount
- $1,500,000
- Minimum down payment
- 20%
- Terms
- 2-5 year fixed terms, Amortization up to 25 years
- Minimum credit score
- 680
- Availability
- 4 provinces
- Shariah oversight
- Formal Board
- Shariah board
- Formal Board
- Provider founded
- 2019
- Last verified
- 2026-09-29
Facts are taken from Manzil's published product materials and were last verified on 2026-09-29. Fields the provider does not publish are omitted rather than estimated.
Our take
Manzil's flagship Musharaka mortgage carries the largest Canadian track record in halal home finance, pairing fixed-rate co-ownership with unusually strong Shariah governance - AAOIFI-aligned board, external review by Mufti Ebrahim Desai, and certificates published in three languages. It is also one of only two Canadian halal financiers publishing a real rate sheet, and the sharper one: from 5.90% on a 2-year term (July 23, 2026 sheet) against posted halal alternatives well above 8%. The practical constraints are the 20% equity bar, a 680 credit floor, renewal-reset terms, and an Early Termination Sale Price if you exit entirely mid-term. The benchmark choice for buyers in its covered provinces who can meet the down payment.
Strengths
- Diminishing Musharaka co-ownership: you buy out Manzil's share until you own the home outright, at a fixed rate
- Certified by Manzil's AAOIFI-aligned Shariah Supervisory Board with external review by Mufti Ebrahim Desai and published compliance certificates
- Publishes an actual rate sheet - from 5.90% at July 2026, the sharpest published halal pricing in Canada
- Funded by the Manzil Mortgage Fund investor pool, so no bank credit lines or interest-bearing debt in the chain
Watch-outs
- 20% minimum down payment - no low-down-payment option
- 2-5 year terms mean pricing resets at each renewal
- Not available in Quebec, Manitoba, or most of Atlantic Canada, and early full payoff triggers an Early Termination Sale Price
Is the Manzil Musharaka Mortgage halal?
Diminishing Musharaka co-ownership: you and Manzil buy the home as partners, you hold title, and each payment buys back Manzil's ownership units while paying a profit rate on the share you don't yet own - no money is lent and no interest charged. The Musharaka product carries a published Shariah Supervisory Board certificate and independent certification from Darul Iftaa Mahmudiyyah (Mufti Ebrahim Desai), within AAOIFI-based governance. Funding comes from the Manzil Mortgage Fund - a Shariah-compliant investor pool - rather than bank credit lines, so no interest-bearing debt sits anywhere in the chain, and Manzil publishes an actual rate sheet (manzil.ca/rates) instead of quote-only pricing, which keeps the profit rate verifiable.
Shariah oversight disclosed by Manzil
Manzil's products are certified by its internal Shariah Supervisory Board, whose governance adheres to AAOIFI standards, with external independent review by Mufti Ebrahim Desai (Darul Iftaa Mahmudiyyah) for home financing. Manzil is Canada's first AAOIFI member and publishes its Shariah compliance certificates in English, French, and Arabic at manzil.co/ca/certifications.
HalalWallet reports the Shariah documentation a provider publishes. We do not issue certifications; consult a qualified scholar for a personal ruling.
What you get
- Diminishing Musharaka co-ownership - you hold title from day one and buy back Manzil’s units with each payment
- Minimum 20% down payment; 2–5-year fixed terms on amortizations up to 25 years
- Funded by the Manzil Mortgage Fund investor pool - no bank credit lines or interest-bearing debt in the chain
- One-time administrative fee of typically 2% of the financing amount at closing
- Purchase, refinance, and mortgage-transfer pathways
- Published SSB certificate for Ontario plus independent certification by Mufti Ebrahim Desai (Darul Iftaa Mahmudiyyah)
Cost and terms
Published rate sheet (manzil.ca/rates, effective July 23, 2026): Musharaka profit rates from 5.90% (2-yr), 6.00% (3-yr), 6.10% (4-yr), 6.20% (5-yr fixed). Maximum finance-to-value 80% (20% minimum down); minimum credit score 680; GDS 39% / TDS 44%; maximum financing CAD $1,500,000; amortization up to 25 years; monthly payments. One-time administrative fee of typically 2% of the financing amount at closing. Early full payoff before maturity triggers an Early Termination Sale Price based on the outstanding contribution and applicable profit rate. Rate sheet lists Ontario, Alberta, BC and Saskatchewan. (verified 2026-08-05)
How it compares
Other home financing providers we list in Canada, ordered by HalalWallet Index grade.
| Product | Structure | Shariah oversight | Availability | Grade |
|---|---|---|---|---|
| Manzil Musharaka Mortgage (this page) | Diminishing Musharaka | Formal Board | 4 provinces | A |
| IjaraCDC Mortgage Switch / Transfer | Ijara | Formal Board | every province | A |
| Tjara Halal Financing Home Financing | Musharaka | Formal Board | 10 provinces | B+ |
| Eqraz Home Financing | Murabaha | Third-Party Certified | 10 provinces | B |
| Servus Credit Union Home Financing | Murabaha | Third-Party Certified | Alberta | B |
Other Manzil products
- TFSA - Tax-Free Savings Account
Investing · Wealth Management
- Personal Account (Non-Registered)
Investing · Wealth Management
- Wealth Management
Investing · Wealth Management
- FHSA - First Home Savings Account
Investing · Wealth Management
- RRSP - Registered Retirement Savings Plan
Retirement · Wealth Management
- Business Account (Non-Registered)
Investing · Wealth Management
- LIRA - Locked-In Retirement Account
Retirement · Wealth Management
- RESP - Registered Education Savings Plan
Investing · Wealth Management
- Murabaha Mortgage
Home Financing · Murabaha
- Manzil Wills - Islamic Will
Wills & Estate Planning · Islamic Will
- Joint Account (Non-Registered)
Investing · Wealth Management
- Manzil Russell Halal USA Broad Market ETF
Investing · Index-based
- RRIF - Registered Retirement Income Fund
Retirement · Wealth Management
Where it's available
Manzil lists the Musharaka Mortgage as available in 4 provinces.
Availability may vary by product and can change; verify with Manzil before applying.
Frequently asked questions
Is the Manzil Musharaka Mortgage halal?
Diminishing Musharaka co-ownership: you and Manzil buy the home as partners, you hold title, and each payment buys back Manzil's ownership units while paying a profit rate on the share you don't yet own - no money is lent and no interest charged. Contract structure: Diminishing Musharaka. Shariah oversight disclosed by Manzil: Formal Board. HalalWallet reports what the provider documents; we do not certify products.
How does the Manzil Musharaka Mortgage work?
Manzil's flagship halal mortgage: a fixed-rate diminishing Musharaka in which buyer and Manzil purchase the home as partners, the buyer holds title, and each payment buys back Manzil's ownership units while paying a profit rate on the share not yet owned. 20% (5-year fixed), maximum financing CAD $1,500,000 at up to 80% finance-to-value (20% minimum down), minimum 680 credit score, and amortization up to 25 years.
What does the Manzil Musharaka Mortgage cost?
Published rate sheet (manzil.ca/rates, effective July 23, 2026): Musharaka profit rates from 5.90% (2-yr), 6.00% (3-yr), 6.10% (4-yr), 6.20% (5-yr fixed). Maximum finance-to-value 80% (20% minimum down); minimum credit score 680; GDS 39% / TDS 44%; maximum financing CAD $1,500,000; amortization up to 25 years; monthly payments. One-time administrative fee of typically 2% of the financing amount at closing. Early full payoff before maturity triggers an Early Termination Sale Price based on the outstanding contribution and applicable profit rate. Rate sheet lists Ontario, Alberta, BC and Saskatchewan. (verified 2026-08-05)
What are the minimums for the Manzil Musharaka Mortgage?
As published by Manzil: minimum down payment 20%; minimum credit score 680. Confirm current requirements with Manzil before applying.
Where is the Manzil Musharaka Mortgage available?
Manzil lists this product as available in 4 provinces. Availability can change and may differ by province; verify directly with Manzil.
What are the alternatives to the Manzil Musharaka Mortgage?
In the same category we also list IjaraCDC Mortgage Switch / Transfer (HalalWallet Index A), Tjara Halal Financing Home Financing (HalalWallet Index B+), Eqraz Home Financing (HalalWallet Index B). Compare every option side by side on our Halal Home Financing hub.
When was this Manzil product information last verified?
HalalWallet last verified the Manzil Musharaka Mortgage details against Manzil's published materials on 2026-09-29. Rates, fees, and availability can change after that date.
How to use this comparison: HalalWallet is an independent educational comparison platform - by design, we do not provide financial, legal, or religious advice. We do the research homework so your final checks are quick and personal.
Product structures and Shariah oversight vary by provider, so finish with three built-in steps:
- Confirm current terms and halal compliance directly with the provider - their quote is final.
- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Bring your shortlist to a qualified Islamic finance advisor or scholar, so the conversation is about your situation, not the basics.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-09-29
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