Home Purchase Plan
HOME PURCHASE PLAN (HPP)
An-Nur Co-op offers its share holders flexible financing alternatives to buy/refinance their residential homes. These alternatives include Musharaka (shared equity and declining balance partnership) and Murabaha (cost plus basis) – in exceptional situation only.
HOME OWNERSHIP MADE EASY (HOME) PLAN Important Features:
In general, prospective home buyers are required:
- to contribute a minimum of 25% of the value of the home they wish to purchase;
- there is no “Waiting Period”;
- The plan is structured as a “Purchase & Sale” transaction - no Loan Agreement Or interest-based documents involved;
- No maximum limit on the Purchase Price (provided you contribute a minimum of 25% down);
- As a security of your 25% down payment, there will be a charge placed (Lien registered on the title of the house);
- The Balance of Purchase Price (75% or less) is payable in monthly installments;
- Titles to all housing units will be held in the name of a Numbered Ontario Corporation for security purposes;
- No sharing of Price appreciation – you keep 100% of Capital gains;
- After first year, you can pay as much as you like & reduce the Purchase Price Balance;
- A monthly “User Fee” is payable to the numbered company as a return for its investment in the house;
- The User fee is based on the criteria described below;
- An-Nur Co-op will collect initial 25% down Payment & your monthly Installment payment as well as monthly User Fee payment;
HOME Plan members pay Occupancy Charge to An-Nur Co-op which is determined on the following basis:
- Current market value rent in metro and surrounding area;
- Dividend paid by An-Nur to its Investors:
- Average return on An-Nur’s other investments; and
- Other factors on management’s direction.
Distinct Advantages of Home Purchase Plan (HPP)
- Adherence to Sharia'h guidelines;
- You can rent a portion of your house with prior permission of the corporation;
- Select the installment payment period to suits your need & your convenience.
- No long waiting Period, NO Maximum Price Limit;
- Flexibility to pay the Purchase Price Balance after first year;
- 100% Capital gain is yours to keep.