Halal Mortgages

Interest-Free Loans Who can join the credit union

Key Features:

  • Riba-Free & Halal
  • 40K+ Satisfied Homeowners
  • Competitive Pricing

A Path to Homeownership Aligned With Your Values


At NorthCountry, we believe that everyone deserves a fair and accessible path to homeownership. That’s why we’re proud to offer Halal mortgages - designed for members who wish to purchase a home in a way that honors their principles.

Our Halal mortgage option avoids traditional interest charges and instead uses the Declining Balance Co-ownership Program, a recognized agreement that was created under the direction of six globally renowned experts on Halal lending. 
 

How It Works

  • No Interest (Riba-Free): Instead of charging interest, we structure the financing around a co-ownership agreement (Musharakah). 
  • Shared Ownership Model: Over time, your share of ownership in the property increases and our portion decreases until the home is fully yours.
  • Transparent and Fair: Your fixed monthly payment includes a portion that increases your equity and a usage fee for exclusive use of the home.  All costs are clearly explained up front, with no hidden fees.
 

Why Choose NorthCountry?

  • Local Commitment: We’re committed to serving our members and community, not shareholders.
  • Personalized Support: Our team will guide you step by step to make sure the process is simple and respectful of your needs.
  • Inclusive Solutions: Whether you’re buying your first home or refinancing, our Halal lending program ensures your financing aligns with your faith and values.

Get Started Today

If you’re ready to explore Halal home financing, we’re here to help. Speak with a NorthCountry mortgage specialist to learn more about your options and start your journey toward homeownership.

 

"For the first time in Vermont, Guidance Residential is offering its Declining Balance Co-ownership Program — a unique home financing solution that allows you to own your home without compromising your faith.  This historic, values-based initiative reflects our shared commitment to providing ethical and faith-aligned pathways to homeownership." -- ISOVT Board

You've got questions, we've got answers

View All FAQs
While our Halal Mortgages are “interest-free” in the traditional sense, we have a unique structure in place based on an equitable co-ownership model where, instead of interest, borrowers are charged a fee or “profit payment” for the use of the property. This ensures that borrowers are still paying an interest-like monthly fee, while remaining compliant within their faith. At the end of the day, borrowers of a Halal mortgage and a traditional mortgage are paying comparable amounts in interest or profit payments. 
Yes, absolutely! Halal mortgages are available to all members but were specifically created for Muslim-Americans who are prohibited from paying interest in the context of a traditional borrower-lender relationship. 
With a traditional mortgage, borrowers make a principal payment, an interest payment, and an escrow/impound payment. With a Halal mortgage, borrowers make an acquisition payment, a profit payment, and an escrow/impound payment. These terms are largely interchangeable, while having slightly different structures to ensure the Halal loans are compliant with the Islamic faith.