Most forms of Islamic financing, including Shariah-compliant mortgages, would pose no legal hurdles if widely offered in Canada, concludes a CMHC report expected Wednesday.

The 88-page Canada Mortgage and Housing Corp. study notes that Islamic funding instruments are widely available throughout the world, but even in Muslim countries, often comprise a minority share.

Canada’s Muslim community has taken the first tentative steps to privately offering Shariah-compliant mortgage-like products, but the practice is still in its infancy.

Islamic financing is based on the principle that charging interest on loans is forbidden.   »»» The Guardian (Canada)

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