Assalamu Alaikum,
One thing that concerns me is that they require explicitly signing an interest-based contract as per the FAQ:
https://www.zeroglobal.biz/services/zero-mortgage/
8. Why does the mortgage documentation from the lender use the terms “interest” and “loan”? Why is the structure this way?
Remember, Halal Banking is a relatively new concept in Canada and the terms that we use, such as Home Payment Amount and Profit Amount, are not used in current Canadian regulations. All institutions in Canada use the standard forms and lending terminology with respect to mortgage transactions. The government has yet to approve modifications to these terms to adapt to our product and others in which interest is not present. The Ethics Board issued the fatwa on our website which states that given the nature of financing in Canada, such disclosures can be used without affecting the halal nature of the product. This is not something new in Canada, the leading Halal financing company in the USA, Guidance Residential, in their fatwa allow clients to use the term interest in documentation due to USA law.
I am not sure if it’s possible for a mortgage to be halal when you sign a contract agreeing to an interest rate?