How does Ijara home financing work?

Applies to: United States and Canada.

Ijara home financing uses a rent-to-own arrangement. A trust owns the property, and you enter into a lease-to-own agreement with the trust. You make a monthly rent payment, with part of the payment going toward ownership until you own the property in full.

The distinction in our home-financing model is how profit is earned: it comes from rent on the property, rather than rent on money. The trust, lease and purchase documents set out how the arrangement works for your transaction.

What should I review before proceeding?

Review how your payments contribute toward ownership, who holds the roles in the trust, and what happens when the arrangement ends. Visit our document review page and follow the access steps for the applicable sample agreements. Ask your processing team to identify the documents for your country and program.

This explanation concerns home financing. Our auto-conversion program uses a separate Murabaha installment-sale structure.