MD Home Project is a part of global real estate solutions by MD Global Real Estate Inc. This project is designed in an attempt to offer an Islamic solution for homeownership challenges to the Muslims living in Canada. This project is being established in two phases. In Phase I, potential home buyers choose a suitable home for rent as per location and need basis among the available properties. The potential buyer assess the home (trial) by living in the home for a year or six months as a tenant. In phase II, if the potential buyer finds the home suitable for his family, he has choice to enter into a purchasing (Sale Contract) contract. All buyers must have a certain amount of cash (20% or 25% based on the price of the homes) which must be paid outright. The remaining amount would be equally distributed over 10 or 15 years of time period. This homeownership model (Sale Contract) is currently being designed and a complete proposal would be forwarded to Islamic authorities, local imams and other Sharia’ experts. The Sale Contract will be opened in Phase II, only when the model is passed by them and certified as “Truly Islamic”. Since then, the project will run in its first phase as a rental program only.
Frequently Asked Questions
How does this work?
MD Homes is deigning this project in two phases. Currently, we are in Phase I (rental program), while the home purchasing program is in Phase II. Hence, the model is not ready yet to lay down all the rules, policies and answers to your questions yet (excuse us, we are trying our best to bring it as soon as possible Insha Allah) . The questions, answers and the website given here is a sample model that will include many other things into consideration. It’s traditional a buy and sale contract. MD Global Real Estate Inc. already purchased these houses (and will purchase approximate 25 more houses in 2021 in Edmonton Insha Allah) with full payment settlement and currently has full ownership on these houses without any mortgage or loan liability. In the sale contract, MD Real Estate will sell the house to you where MD Global Real Estate is the seller and you are the buyer. The buyer will buy the house from the seller in an agreed upon price that is fixed. The buyer will pay some portion in cash (could be 20% or 25% which may vary with the price of the house, ability of the buyer and upon discussion on some other factors), and the remaining amount will be paid in a monthly installment over a 10 years or 15 years of time period. The price does not change with the time factor (i.e. regardless you pay full amount in 10 years or 15 years or next day). There is no mortgage involved. Every monthly payment made will reduce the overall price by that amount in full.
Is it really 0% interest on all of your homes?
Yes. The buyer will never be charged interest under any circumstances. As it’s a traditional buy and sale contract, there is no room to bring the concept of interest. Regardless, the buyer makes full payment in 1 year or 10 years or 15 years, the price of the house is fixed. A concern may arise where the buyer fails to pay monthly installment payment or involves in any other factor that is considered as a breaching of the contract by the buyer. Well, in that case a very well defined policy, terms and rules will take place in the contract. An administrative fee could be involved which is merely the legal fees, administrative fees, land title change fees and realtors fees.
How long do I have to pay off my home?
Typically we are going to offer either 10 years or 15 years term Insha Allah. While MD Global Real Estate prefers every house to sell on a 10 years term, many buyers will face difficulty in making a large monthly payment. Therefore, the term will be determined with a house price ceiling line. An example: any house with more than $300K, may offer 15 years term, while houses with price less than $300k may offer 10 years term. The spirit of the project is to ensure the buyer can afford the monthly payment while the seller also can continue the expansion of the project with minimal capital and risk.
What if I need more time?
As of now, we do not have any plan to offer more than 15 years of term. The project is currently an experiment. We may consider more options once we learn from the experiment.
What kind of down payment do I need?
That depends on the price of the home. Typically, the minimum would be 20%. Please note, the project is targeting only those Muslims who have saved at least 20% cash and seriously looking to buy a house (and need a house). They can’t buy a house because they do not have the remaining 80% cash in their hand, neither can they involve with mortgage because of interest. The project is not a competitor or substitute of current mortgage system offered by banks. Rather, it’s designed targeting a small number of Muslims (30 or 40) initially in Edmonton. If the experiment is successful, the model could be implemented in other cities in Canada.
Do you have this contract in Arabic?
Yes we offer it in English and Arabic. And Insha Allah, we will send the contract to Islamic authorities, local imams and other Sharia’ experts. We will only operate the project once we get certified as “truly Islamic’ by them, Insha Allah.
How do I start this process?
The home purchase phase didn’t start yet, It will start in Phase II Insha Allah, as we mentioned before. For now, the rental project is on and if you are looking for renting any of the available houses, please make a Rental Application on this website. You can also email us with any questions firstname.lastname@example.org