Ijara Fake Halal Mortgage Scam | Rent-To-Own Fake Halal Scam

Ijara Fake Halal Mortgage Scam | Rent-To-Own Fake Halal Scam

The Arabic word for rent is Ijarah and there is a whole Fake Halal Mortgage scam around it.

It goes like this. You approach a company thinking they will get you No Interest Halal home financing. They tell you that they’re a third-party Sharia-compliant solutions company, that have formal agreements with banks, lenders, and other financial institutions including pension funds to create a Rent to own. An Ijarah Halal mortgage arrangement using a trust and the banks' money. Truth is, they have no agreements like that with any banks whatsoever. It’s all a lie.

You’re told in a presentation or over the phone how their mortgage is “Halal”. That using a trust this company creates a rent-to-own arrangement with banks money. That the title ownership of the property belongs to the trust and not you.

To get started you submit your usual financial documents which get sent off to a regular mortgage broker who determines your Affordability. of what price range of a home you can purchase with your down payment.

You then go out making an offer on a home thinking you’re buying a home on Halal financing. Putting a deposit of $50,000 to $100,000 or more to a home seller, as is the norm when making an offer on a property. When you can no longer back out of the deal with the seller and your deposit money is gone. In other words when you’re stuck and really need that Halal financing now to close the deal with the seller.

They send you a Mortgage commitment letter from the local bank. Along with a 1 page of so-called Rental/Ijarah commitment with the exact same numbers as the Interest docs. The only difference is that on their commitment letter has the word interest replaced with the word Profit/Lease Rate.

By this point, you would ask, why’s the commitment letter you’re signing saying 3.89% Interest calculated semi-annually on a 5-year fixed term amortized over 25 years. That’s classic compounding interest by the way.

Here’s what’s happening. To convince you that you're getting a halal mortgage you're signing trust documents, which never officially gets registered at land registry office. You sign a fake lease between yourself and the trust you just created. And your actual mortgage lender has no idea about any of this whatsoever. So what’s happening here? What’s all this legal wordplay? Who are you really agreeing to all of this with? You yourself and you. You're the one who created the trust. You're the beneficiary of the trust and the manager of the trust.

The title of the property is never held by the trust like the company claims nor is the trust ever registered owner of the property. All they're doing is charging you a $2500 - $3000 fee for documentation that's never been viewed by the lender you're getting the mortgage from. Even the monthly payment, from the trust to the mortgage lender. Isn't from an actual trust bank account. It's from any other ordinary checking account that you opened and is under your name because You, The suckers don't know the difference between a regular bank checking account and a trust account.

When you submit your financial information to get approved for their version of halal mortgage, they're sending it off to the very mortgage brokers to get you qualified for the very interest mortgage that you've been avoiding all along from some douchebags across Canada. And these guys are collecting their cut of the commission from the local mortgage and real estate agent.

So what's happening here with all those extra documents that you signed? Nothing. Nothing, except you getting a regular interest mortgage and paying to be fooled by signing a stack of papers with words on it that aren’t even legal. Collecting dust is worthless, try burning it. It wouldn't make a difference.

"This video is not sponsored. not legal advice. not financial advice.. Not intended to solicit any clients or customers currently under contract with any brokerage, corporation, or other business entity. The views expressed on my channel are my own and do not reflect or target any specific individuals or specific companies unless directly named by the specific name of an individual or company. Not Sponsored video"

#IjaraRentToOwnScam #Ijara #Ijarah #FakeHalalMortgage