The federal government is launching a “halal mortgage” study

The federal government says it plans to consider new measures to expand access to “alternative financing products such as halal mortgages.”

According to the federal budget, the Liberal government has begun consultations with financial services providers and various communities “to understand how federal policies can better support the needs of all Canadians who want to become homeowners.”

Islam considers usury to be a form of usury, and profits earned through usury are unjust.

Other Abrahamic religions, such as Judaism and Christianity, consider usury to be a sin. However, financial institutions operating in the Islamic world are unique in offering mortgage and loan products that avoid the usual interest charges.

Islamic mortgages are already offered by some Canadian financial institutions, although none of Canada's “Big Five” banks currently offer them.

Officials say alternative mortgages aren't necessarily interest-free, but may include fixed payments that replace interest payments.

Deputy Prime Minister and Finance Minister Chrystia Freeland presented a housing-focused budget on Wednesday that includes a projected deficit of $39.8 billion for the 2024-2024 fiscal year and $53 billion in new spending over five years.

Much of the new spending was previously announced and focuses on generational equity and helping younger people — Millennials and Generation Zs — with programs to help renters and first-time homebuyers.

The costs will be partially offset by what the government calls “tax fairness measures” that are projected to generate $18.2 billion in additional revenue over five years.