The concept of mortgage .. Between conventional and Islamic banks
- Salah Bin Fahad Badgers - 11/01/1428 H
One of the terms of the much-talked about with regard to financing the real estate is what is called term mortgage, which has been dealt with and talk about this in particular at a conference sponsored by "Euromoney" which has been at the end of the year AH past and mid-January (January) for 2007, which resulted in proposals to support the idea to facilitate access to adequate housing for every citizen.
Perhaps this is what concerns us here is the concept of mortgage as the entry term mortgage on the financing of private individuals for housing is rather strange, as the mortgage is known as a contract document is not a stand-alone, comes a follower of a contract of sale, loan, etc. and a kind of guarantee that the seller or lender may be able to exercise their right or part of the right when given the authority to act in the eye that is when you do not encumber the debtor's ability to pay.
Perhaps, prompting the use of this term is to use him in the Western model of lending that is the purpose of funding access to residential units, a so-called mortgage contract is a contract loan interest rate to finance personal for housing or real estate in general, and is characterized by this type of loan that type of low-cost, and the secret lies in the existence of the mortgage contract as the taxpayer, a bank mortgage on the property and when there are delays the beneficiary to payment by himself sell the property in the market and then take the share and return to the beneficiary the remainder if there was an amount in excess of the amount required, and this type of loan The low-risk area due to the fact that the taxpayer can recover his right to fully or in part by the mortgaged property, and perhaps the key label this kind of mortgage loans or so-called mortgage in order to distinguish it from other types of loans.
There remains the question about the reason for the entry of this term to the corridors of the concepts traditionally used when financial institutions that provide various kinds of sharia-compliant finance, since it is through a comparison between the mortgage within the meaning of traditional institutions, we find that one type of loan, a loan mortgage, while Islamic institutions that provide various types of funding at both the personal or institutional, for example, with regard to funding for individuals who can offer Islamic financial institutions in the so-called funding through Murabaha, or the so-called funding through the dwindling participation. The same applies with regard to institutional funding could be added to the previous two decades a peace and istisna'a and participation through the holding of speculation.
You see, dear reader, this is for five types of contracts, which ones might be called the mortgage or the so-called Islamic mortgage, and perhaps this brings us back to a kind of dependency in the labels used by Islamic financial institutions, such as the use of the term benefit of interest, and the term Windows Muslim Islamic windows, and the use of the term Islamic products such as Islamic products.
Though in general there is no wrong with the terminology, but do not have to be the label reflect even one way or another the nature of the contract, which has been discussed, and there remains the question whether the concept of mortgage is the same as Murabaha agreement was exercised by the banks today as one of the alternatives is compatible with the Sharia, it is in origin exist, but still the Saudi market, you need to enter into contracts or the so-called additional products to expand the segment of beneficiaries.
Perhaps the most notable of these contracts is called decreasing Musharaka contract is practiced widely as a model for contracts or products compliant with sharia law in Britain, which benefited a large number of Muslims living there, while many financial institutions that provide alternatives to Islamic government in Saudi Arabia is still favor a so-called Murabaha or tawarruq, did not fall within their offers additional contracts may attract a larger number of beneficiaries.
Lecturer at King Fahd University of Petroleum and Minerals, Dhahran
Doctoral student in Islamic finance
Department of Islamic Studies and Middle Eastern
At the University of Edinburgh in the UK
- Salah Bin Fahad Badgers - 11/01/1428 H
One of the terms of the much-talked about with regard to financing the real estate is what is called term mortgage, which has been dealt with and talk about this in particular at a conference sponsored by "Euromoney" which has been at the end of the year AH past and mid-January (January) for 2007, which resulted in proposals to support the idea to facilitate access to adequate housing for every citizen.
Perhaps this is what concerns us here is the concept of mortgage as the entry term mortgage on the financing of private individuals for housing is rather strange, as the mortgage is known as a contract document is not a stand-alone, comes a follower of a contract of sale, loan, etc. and a kind of guarantee that the seller or lender may be able to exercise their right or part of the right when given the authority to act in the eye that is when you do not encumber the debtor's ability to pay.
Perhaps, prompting the use of this term is to use him in the Western model of lending that is the purpose of funding access to residential units, a so-called mortgage contract is a contract loan interest rate to finance personal for housing or real estate in general, and is characterized by this type of loan that type of low-cost, and the secret lies in the existence of the mortgage contract as the taxpayer, a bank mortgage on the property and when there are delays the beneficiary to payment by himself sell the property in the market and then take the share and return to the beneficiary the remainder if there was an amount in excess of the amount required, and this type of loan The low-risk area due to the fact that the taxpayer can recover his right to fully or in part by the mortgaged property, and perhaps the key label this kind of mortgage loans or so-called mortgage in order to distinguish it from other types of loans.
There remains the question about the reason for the entry of this term to the corridors of the concepts traditionally used when financial institutions that provide various kinds of sharia-compliant finance, since it is through a comparison between the mortgage within the meaning of traditional institutions, we find that one type of loan, a loan mortgage, while Islamic institutions that provide various types of funding at both the personal or institutional, for example, with regard to funding for individuals who can offer Islamic financial institutions in the so-called funding through Murabaha, or the so-called funding through the dwindling participation. The same applies with regard to institutional funding could be added to the previous two decades a peace and istisna'a and participation through the holding of speculation.
You see, dear reader, this is for five types of contracts, which ones might be called the mortgage or the so-called Islamic mortgage, and perhaps this brings us back to a kind of dependency in the labels used by Islamic financial institutions, such as the use of the term benefit of interest, and the term Windows Muslim Islamic windows, and the use of the term Islamic products such as Islamic products.
Though in general there is no wrong with the terminology, but do not have to be the label reflect even one way or another the nature of the contract, which has been discussed, and there remains the question whether the concept of mortgage is the same as Murabaha agreement was exercised by the banks today as one of the alternatives is compatible with the Sharia, it is in origin exist, but still the Saudi market, you need to enter into contracts or the so-called additional products to expand the segment of beneficiaries.
Perhaps the most notable of these contracts is called decreasing Musharaka contract is practiced widely as a model for contracts or products compliant with sharia law in Britain, which benefited a large number of Muslims living there, while many financial institutions that provide alternatives to Islamic government in Saudi Arabia is still favor a so-called Murabaha or tawarruq, did not fall within their offers additional contracts may attract a larger number of beneficiaries.
Lecturer at King Fahd University of Petroleum and Minerals, Dhahran
Doctoral student in Islamic finance
Department of Islamic Studies and Middle Eastern
At the University of Edinburgh in the UK
A mortgage is based on the concept that people need to have places to live, but they cannot afford to pay the high cost of that home up front.
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