Client Application & Property Selection
The client applies for financing and identifies the property they wish to acquire. Basic financial and property information is provided for assessment.
Diminishing Musharaka is a Shariah-compliant home financing structure where the customer and financier jointly purchase a property. Over time, the customer gradually acquires the financier's ownership share while paying rent on the remaining share until full ownership is achieved.
The client applies for financing and identifies the property they wish to acquire. Basic financial and property information is provided for assessment.
The financier evaluates the property's market value and conducts due diligence to ensure the asset meets financing and compliance requirements.
A Musharaka (partnership) agreement is executed between the client and financier. Ownership shares are determined according to each party's financial contribution.
The property is purchased and ownership is registered in accordance with the agreed structure, recognizing both parties' ownership interests.
The financier leases its ownership share to the client. Rental payments are calculated based on the financier's remaining ownership portion.
The client provides a unilateral promise to purchase the financier's ownership units over time, creating a clear pathway toward full ownership.
With each scheduled payment, the client's ownership share increases while the financier's share decreases. Rental obligations are adjusted accordingly.
Once all ownership units have been acquired, the client becomes the sole owner of the property and the lease arrangement concludes.
Unit 6 8550 Torbram Road, Brampton, ON L6T 5C8