EQRAZ Inc., a Toronto-based Islamic financial services
start-up, announced today the launch of its Shariah-compliant mortgage business
for Canada’s fast-growing 1.8 million Muslim population.
EQRAZ’ entire business, including products, policies, and
procedures are Shariah-certified under AAOIFI standards by Bahrain-based
Shariyah Review Bureau (SRB), who will also be supervising and auditing the
company’s offerings and operations in accordance Shariah and AAOIFI standards.
According to Syed Zuhair Naqvi, Founder & CEO of EQRAZ,
“It has taken us four long years to overcome the numerous challenges facing
halal mortgage offerings in Canada which prevented at-scale financing from
being available. The biggest challenge
we faced was developing a halal product that does not conflict with Canadian
tax, disclosure and other regulations, and meets with Canadian capital-market
requirements. Our product is a five-year renewable product which has been
tested against all applicable Canadian banking, mortgage and other regulations
by both EQRAZ counsel as well as the Schedule 1 bank that is providing halal
mortgage funding. EQRAZ’ halal mortgage product avoids the regulatory and
funding-related problems facing traditional Musharaka and Murabaha products
being used by other firms.”
When asked about scalability, Mr. Naqvi commented, “We are
proud of our partnership with some of Canada’s top players in the industry. All
EQRAZ mortgages will be administered by CMLS Financial, one of Canada’s most
well-respected third-party mortgage administrators with a CAD $30 Billion of
assets under administration.
EQRAZ has an exclusive relationship with Canada’s largest
mortgage broker, Dominion Lending Centre franchise, Forest City Funding. It has
integrated with Finastra’s Filogix and Newton’s Velocity platforms which allows
approximately 90% of Canada’s mortgage brokers to apply for an EQRAZ halal
mortgage on behalf of their customers.
The Shariyah Review Bureau, (SRB), with its head office in
the Kingdom of Bahrain, was founded in 2004. Licensed by the Central Bank of
Bahrain, it has a global footprint and has developed a dedicated house of
Shariah reviewers and auditors regulated by the Central Bank of Bahrain which
helps close the loop for institutions seeking Shariah structures, certifications
and assurance. The company is also one of the largest Shariah firms with over
30 scholars covering 16 countries.
Mr. Moinuddin Malim, EQRAZ Board Member and Chief Shariah
Advisor stated, “We intentionally chose one of the leading and most well-respected
Shariah audit and advisory firms to supervise EQRAZ’ Shariah-compliance, as we
wish to submit ourselves to the highest standards of compliance at all times.”
Mr. Yasser S Dahlawi, CEO of SRB, commented, “Our client
portfolio has been significantly expanding internationally, and this engagement
further demonstrates our dedication to clients like EQRAZ in Canada. We hope to
continue to reward our stakeholders with the trust and Shariah assurance they
need in the years to come.”
https://www.zawya.com/en/press-release/companies-news/eqraz-inc-launches-halal-home-mortgages-across-several-canadian-provinces-x0vd9dxt