Halal Mortgage in the Netherlands
A halal mortgage, also known as an Islamic mortgage, is a type of mortgage that complies with the principles of Islamic banking.

What is a halal mortgage?
Halal mortgages are a type of mortgage for which the bank does not charge interest but instead applies a small fee based on a basic percentage of the property's value. This fee is usually paid on a monthly basis. Instead of interest, the bank will therefore charge a fee.
Why a halal mortgage?
A halal mortgage can be a good option for Muslims who are looking for a way to purchase their home without compromising their religious principles.
A halal mortgage complies with the rules of Islamic financial law. This financial law is focused on avoiding the earning of interest, which is not permitted according to Islamic principles.
Advantages and disadvantages of this type of mortgage
An Islamic mortgage has both advantages and disadvantages.
Advantages of a halal mortgage
- Banks often offer more flexible repayment methods with a halal mortgage, including the early repayment of part or all of the amount without penalties.
- Muslims can purchase a home in a halal manner, in accordance with their religious principles.
Disadvantages of a halal mortgage
- The costs of a halal mortgage are usually higher than those of a traditional mortgage.
- Taking out a savings insurance policy is often mandatory.
- Banks are often less flexible when it comes to adjusting the loan.
- Transferring the loan to another property is not always possible.
- Not many banks offer a halal mortgage.
Taking out a halal mortgage in the Netherlands
A large number of Muslims live in the Netherlands, which means there is a high demand for a halal mortgage. Various banks have attempted to offer halal mortgages in the Netherlands, but so far, it has not been possible to obtain one. As of now, England is the only European country that offers Islamic mortgage loans.