Is Islamic Finance More Expensive?
Islamic Home Financing: Just as Affordable as Conventional Financing But Without the Riba or Dishonest Fees
One of the common misconceptions among potential homeowners is that Islamic financing is more expensive than conventional financing – which couldn’t be further from the truth. Guidance Residential is just as competitive as conventional financing but without the riba or dishonest fees. We don’t offer low rates on the front end, only to add substantial costs on the back. A common practice of conventional lenders is to hide all the fees involved in their lending transactions, surprising homeowners at inopportune moments. Guidance Residential, on the other hand, explains its cost structure to interested parties upfront. When it comes to home financing, Guidance Residential is a bastion of integrity – not only because home owners already have so much to cope with financially, but also because it’s the right way to conduct business.
The graphic below provides a clear breakdown of the costs associated with home financing and how Guidance Residential with its unique riba-free diminishing musharaka financing program compares with the conventional mortgage industry.