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Islamic Home Financing

Halal Mortgage Alternatives

You don't need a conventional mortgage to buy a home. Compare Shariah-compliant home financing structures, from diminishing partnerships to lease-to-own models.

Reviewed by: HalalWallet Editorial TeamLast reviewed: 2026-08-07Disclosure: No provider pays for placement or ranking on this page. Editorial policy and full disclosures.

Reviewed monthly and updated when financing structures, provider coverage, or guidance notes change.

Types of Halal Home Financing

Each structure avoids interest (riba) in a different way. Here's how they work.

Murabaha (Cost-Plus Home Finance)

Most popular

Available from: Participation banks across Turkey

The participation bank buys the home, then sells it to you at a marked-up price payable in fixed installments. The total cost and profit rate are printed upfront and never change over the term. This is the dominant home finance structure at Turkey's participation banks.

Fixed total cost printed upfront
No floating rate
Standard structure at Turkish participation banks
Advisory committee approved

Save-Then-Finance (Tasarruf Finansman)

Available from: Licensed savings finance companies such as Eminevim, Fuzul Ev, and Birevim

You join a BDDK-licensed savings finance plan, save toward the home in a shared pool, and receive interest-free financing for the balance when your turn arrives. There is no profit charge on the financing, only an organization fee, but you wait for your allocation date.

No profit charge on financing
Regulated by BDDK since 2021
Lower total cost for patient buyers

Ijarah (Lease-to-Own)

Available from: Participation banks' leasing arms, mostly for commercial property

The financier buys the home and leases it to you. You make rental payments, and ownership transfers to you at the end of the term (Ijarah wa Iqtina). In Turkey this appears mainly in financial leasing for commercial property, with home finance dominated by murabaha.

Rental-based payments
Ownership transfers at term end
No interest charged

Diminishing Musharakah (Declining Partnership)

Available from: Rare in Turkey; check individual participation banks

You and the financier co-own the home. Each monthly payment buys more of the financier's share until you own 100%, and you pay rent on the portion you don't yet own. Common in the UK and Gulf, but rare in Turkey where murabaha and save-then-finance dominate.

No interest (riba)
True shared ownership
Recognized by most scholars

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Frequently Asked Questions

Frequently Asked Questions

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Quick Answer

Halal mortgage alternatives in Turkey use Islamic financing structures like murabaha (cost-plus sale) and save-then-finance (tasarruf finansman) plans instead of interest-based loans. BDDK-licensed participation banks offer murabaha home finance with printed fixed profit rates, and licensed savings finance companies offer interest-free save-then-finance plans for patient buyers.

Key Takeaways

  • Murabaha is the dominant structure at Turkish participation banks: fixed cost-plus sale with the total printed upfront
  • Save-then-finance plans charge no profit on the financing, only an organization fee, in exchange for a waiting period
  • Ijarah lease-to-own appears mainly in commercial financial leasing in Turkey
  • We track 8 halal home financing products across Turkey's providers
  • Compare printed monthly profit rates, organization fees, and total cost over the full term before signing

Sources and review process

This page is reviewed against HalalWallet editorial standards and source documentation.

Reviewed by: HalalWallet Editorial Team

Last reviewed: 2026-03-08

How to cite this page

Preferred format:

HalalWallet. “Halal Mortgage Alternatives: Islamic Home Financing Options.” HalalWallet, https://www.halalwallet.com.tr/halal-mortgage-alternatives. Accessed 2026-08-07.

For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.

Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.