Unlike traditional mortgages, Sharia-compliant finance is built on the principles of fairness, transparency and risk sharing. There are several structures that lenders may use. In some cases, the bank and the buyer jointly purchase the property, and the buyer gradually acquires full ownership by making regular payments. This is often known as a diminishing partnership. Another method is where the bank buys the property outright and then leases it to the buyer, who pays rent until they eventually own the home. A third common approach involves the bank purchasing the home and immediately selling it on to the buyer at a slightly higher price, allowing the buyer to pay in instalments over time.

In each case, the focus is on creating a system where repayments are based on either profit margins or rental payments, rather than interest. This makes Sharia mortgages not only a practical financial solution but also one that reflects important ethical commitments. They are available to both Muslims seeking Sharia-compliant finance and non-Muslims who are drawn to the clarity and fairness of the arrangements.