Canada Plan for Halal Mortgage for Muslims Sparks Questions

Canada Plan for Halal Mortgage for Muslims Sparks Questions: The Canadian government introduces 'Halal mortgages' to make homeownership more attainable for Muslims. This idea was formulated by PM Justin Trudeau to support people who want to become homeowners basically among the Muslim community.

Justin Trudeau stated that he had already started discussions with the financial service providers and other officials about how federal policies can support the citizens of Canada aspiring to become homeowners.

The idea of 'Halal Mortgages' faced a lot of backlash from the people. However, on April 16 the liberal government and Finance Minister Chrystia Freeland announced the Budget 2024.

In its Budget 2024, the government announced   that “This could include changes in the tax treatment of these products or a new regulatory sandbox for financial service providers, while ensuring adequate consumer protections are in place."

Interest charging is forbidden by Islamic law, followed by halal mortgages. While certain Canadian financial organizations already provide mortgages that comply with Islamic law, none of the five major banks in the nation do so at this time.

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"Trudeau Liberals to introduce 'Halal mortgages' for Muslims. This could include changes in the tax treatment of these products. Religious financial products with different tax treatment? What?," wrote a user on X.

"What's this "Halal mortgages". Don't we all live under the same laws, Canadian laws, in Canada?" asked another person.

Reports say that these mortgages might not be interest-free but might have some fees charges. Though such measures have sparked controversies on the internet that such initiatives has been taken by Canada government to support a specific community, questions were raised by peoples on behalf of 'Halal Mortgages'.

Not only this but the law that the government announced last year, which banned foreign investors from investing or purchasing the country's properties was extended.

Such measures were taken by the government to promote homeownership among its citizens so that they are homes are available for the citizens of Canada. On February 4, 2024, the ban for foreign investors was extended by two more years till 2027.

Prime Minister Justin Trudeau of Canada said that the issue needed to be "under control" and acknowledged the difficulties presented by the rise in temporary immigration.

In Canada, the rate of immigration has surpassed the rate of home development. In fact, by 2030, Canada will lack 35 lakh residential units.

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