Financial products are being adapted to match the unique needs of many Muslims
Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Category Archives: P2P, Lending, Digital Bonds, BNPL, Private Credit
Top 5 Ways for Your Mortgage Not to Overwhelm You
Guest Post | Jan 9, 2023
Image: Pixabay/Tumisu
Navigating the mortgage process can be overwhelming, with loads of paperwork, plenty of calculations to consider, and many decisions to make. You may feel overwhelmed as you try your best to understand all that goes into getting a home loan. However, there are ways to make the process more manageable. This blog post will explore the top five tips for ensuring that your mortgage will be manageable during the application process.
Equity Release
Equity release is a financial product that allows you to borrow against the value of your home. This can help you pay off other debts or make large purchases without taking out a loan or mortgage. It's essential to consider the risks associated with equity release, but for some people, it may be an ideal way to reduce their debt burden and the amount of money they need to borrow for their mortgage. The critical thing to remember is that you should always seek professional advice before taking out an equity release.
Refinance Your Mortgage
Refinancing your mortgage can be a great way to reduce your interest rate and lower your monthly payments. Consider this option if you've been paying on your loan for a while and interest rates have dropped since you got it. Keep in mind that there are better ideas than refinancing. You may have to pay fees and closing costs, so ensure you're getting the best deal by researching and comparing offers from different lenders.
Consider Debt Consolidation
Debt consolidation can be a great option if you're overwhelmed by multiple debts, such as a mortgage and credit cards. This involves taking out one loan to pay off all of your existing ones so that you have one larger payment instead of having multiple monthly payments.
A debt consolidation service can help you find the best deal and ensure that you're getting the best terms, so don't be afraid to reach out for help. York Credit Services has a knowledgeable team of certified credit counselors with experience assisting people in getting the best rates for debt consolidation. A credit service can also offer advice and guidance on managing your debt, so it's worth considering if you're overwhelmed.
Renegotiate the Terms of Your Existing Mortgage
If you already have a mortgage and are looking for ways to manage the debt, renegotiating the terms may be an option. By doing so, you could reduce your interest rates or extend the life of your loan to make it more affordable in the short term. Speak with your mortgage lender about this possibility; you never know what they might be able to do for you. If you decide to renegotiate your loan terms, you should ensure it's sound and won't hurt your credit score in the long run.
Have an Emergency Fund
It's always essential to have an emergency fund that can cover unexpected expenses such as medical bills or car repairs. This can help ease the pressure of paying for these out-of-pocket costs, preventing them from becoming a strain on your budget.
An emergency fund can also help you if you're struggling with your mortgage payments or are at risk of foreclosure. It won't solve the problem entirely, however it can provide breathing room and give you time to explore other options, such as debt consolidation or refinancing.
Following these tips can help you manage your mortgage payments and give you peace of mind when getting a home loan. If you're feeling overwhelmed, don't hesitate to reach out for help. A credit counseling service can provide you with guidance and advice on managing your debt and making sure it doesn't become a burden in the long term.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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The Role of the Merchant Capital Loans in the Development of Trading Enterprises
Guest Post | Jan 6, 2023
Every enterprise starts with a bold and bright idea, however, its development is nothing but a matter of funding. Getting a bank loan to start a business is difficult, as you need to go through a long application process, then the approval period and finally, the decision, which is not always positive. Such a time inefficiency makes the enterprise owners look for other ways of financial support — quicker and with less bureaucracy. One such type of funding is a merchant cash advance (or merchant capital loan). We are going to look into the procedure, its requirements, and its conditions so that you can decide whether it’s a suitable deal for your business.
First things first — merchant cash advance is not a bank loan and doesn’t work the same way; however, the level of safety is equal.
A merchant cash advance provides you with the money you need for your business development, however, the repayment comes from a percentage of an expected future profit, not in standard and fixed monthly installments. It is a good solution for those who need short-term funding.
What’s the procedure?
- A client applies for a loan.
- The lender analyzes and predetermines your future credit and debit card revenue.
- A client is sent the offer with all the terms and conditions mentioned — the provider’s fee and the percentage from your credit and debit sales, time frames (90 days to 18 months), cash flow, and expected monthly sales volume.
- The agreement is signed.
Some may claim that the fee and percentage from sales put businesses into an unfavorable financial position, yet that’s quite a misconception. Borrowing money for business development will always cost you additional money; you just need to understand the positive sides you will be paying back for.
1. Time efficiency
Business values time, however, it doesn’t resonate with bank loan processing. Merchant capital loans are a lifesaver in these terms. The longest time spent for the approval is 48 hours, compared to endless and tiresome bank procedures. Merchant cash is given to thousands of clients every day, which helps to maintain non-stop trading.
2. Flexibility
This is the most convincing option in favor of merchant capital loans. The conventional type of loan has quite strict regulations regarding time frames, with fixed periods of interest payments. Such an approach can be acceptable if the business activity is steadily high over the year. However, there are typically ups and downs in sales, and it may be a real struggle to pay off the interest rates during the slack or low seasons.
Alternatively, merchant cash advance repayments are based on the level of your sales: the more profit you generate, the more you can pay off; during the low season the level of payment processing decreases, and the interest rate as well.
Besides the payment periods can be discussed — daily, weekly or monthly payments, depending on what fits your business more.
3. Feasible requirements
The requirements for a traditional loan — a good credit score, payment history, sufficient collateral, income, low debt-to-income ratio, and potential origination fee. It looks like a bottomless pit.
The requirements for MCA — a bank account, a steady source of recurring revenue, and an individual taxpayer identification number.
The difference is obvious, with the merchant cash advances you will not be rejected due to the lack of collateral or long trading history.
4. Low minimum payments
The minimum payment for MCA is 1% to 3% of the balance or a fixed amount. The option is also discussed before signing the agreement.
5. An emergency help
Merchant cash advances come in handy when there is an unforeseen situation, or the need to upgrade the equipment and limited time for getting money. Considering how quickly the system works, it will help you get out of trouble and then repay the debt following a similar procedure.
6. High level of approvals
Typically, if the business owner isn’t granted a loan due to insufficient credit history, a merchant cash advance may be the best option, as their primary focus is on the transaction activity and history rather than the credit score. Therefore, small businesses with a short period of functioning, or anyone who doesn’t qualify for the loans, can take advantage of merchant cash advances.
A possible downside of merchant cash loans can be their high rates of interest (however, the money-landing is never easy on the wallet) and short-term functioning, typically for current needs. The relatively high interest rates vary depending on the provider, so it’s better to scan the market and choose the most affordable money-borrower.
See: Ep20-Jan 11: Bitcoin Backed Loans and 2x Credit – Putting Your Crypto to Work
Merchant loans are an affordable source of funding, especially in terms of small enterprises. The lenders offer a short-term financial solution in return for fees and interest rates of future revenue. Considering the flexible approach in defining the repayments and quick approvals, it can be the best solution for the current financial needs of the business as it helps to maintain the uninterrupted functioning of the enterprise.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Gemini and The Winklevoss Twins Are Facing a Big Mess
Fortune | Will Daniel | Jan 5, 2023
Image: Pixabay/geralt
Another victim of the Crypto Winter?
- Gemini exchange: In an interview with Fortune on the eve of Gemini’s launch, Tyler Winklevoss described how he hoped to lean into regulation in order to make cryptocurrencies accessible to retail investors, while also attracting the institutional crowd.
- The exchange grew quickly, barring a brief period of turbulence in the 2018 bear market, and the Winklevii became some of the first Bitcoin billionaires during Gemini’s rise.
- [Early 2021], the Winklevii had launched Gemini’s Earn platform. The crypto lending service offered juicy returns of “up to 7.4%” for depositing crypto, promising that customers could redeem their funds “at any time.” By comparison, the average savings account in the U.S. offers just a 0.2% return today.
- The problem for Gemini: One of the ways Gemini created these returns was through Genesis Global Capital, the lending arm of crypto investment firm Genesis Global Trading, which is owned by Silbert’s Digital Currency Group. Gemini lent users’ funds to Genesis, which in turn loaned them out to institutional borrowers.
- But when prices for cryptocurrencies tanked in 2022, it was a whole new world for Gemini and the Winklevii, and Gemini Earn users were particularly at risk. By June, Gemini was forced to slash 10% of its workforce. And just months later, reports surfaced that the firm would need to raise at least $1 billion to stave off bankruptcy for its Gemini Earn platform.
- The issue was made even worse when Genesis decided to stop issuing redemptions to clients such as Gemini after the collapse of FTX—which meant that Gemini didn’t have the money to pay returns or redeem funds on their Earn platform.
See: Overview of Some Popular Layer 1 Blockchains
- Letter to former friend: In an open letter to Silbert this week, Cameron Winklevoss said that over 340,000 users have more than $900 million in crypto trapped at Silbert’s Genesis Global Capital, and in total Silbert’s companies owe Gemini $1.675 billion. He argued that Silbert was engaging in “bad faith stall tactics” to avoid paying back customers.
- “The idea in your head that you can quietly hide in your ivory tower and that this will all just magically go away, or that this is someone else’s problem, is pure fantasy,” he wrote.
- Now, Gemini’s Earn users are suing Silbert and the Winklevoss twins, alleging that Silbert breached his contract by pausing redemptions, and the Winklevii sold interest-bearing accounts without properly registering them as securities. The Commodity Futures Trading Commission (CFTC) also filed a suit against the twins for misrepresenting the way their exchange and futures contracts operated back in 2017 when they sought regulatory approval.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Unprecedented rent growth in Canada: Reasons and How to Cope with It?
Guest Post | Jan 6, 2023
Image: Freepik/xb100
What's Behind the Unprecedented Rent Rise in Canada, and How Can You Deal With It?
According to Statistics Canada, national average rents increased by 11.8% annually in October 2022, more than double the annual growth in employee hourly pay, which was 5.6%. Rent in Canada has increased by 11.8%, or around $209 per month, increasing the average cost of all property types to $1,976.
Across Canada, rents are rising at an unprecedented rate, with most cities reporting double-digit annual rent inflation. With each increase in interest rates and an unprecedented rise in the population, the rental market continues to heat up. There has never been a more pressing need to increase the rental stock.
Why are Canadian Rental Prices Soaring?
Increased Value of Real Estate
Generally speaking, the price of rent and the worth of the rental property are inversely proportional. A greater monthly rent is often associated with more costly buildings.
In comparison to the previous year, the value of both commercial and residential assets has grown and this results in some Canadians being forced to take out online loans in Ontario due to lack of money. Property prices remain high despite the recent market drop that was seen in September. This would imply that landlords of apartments are passing along to their renters the increasing costs of their mortgage interest.
Rising Interest Rates Have Kept Canadians In the Rental Market
The benchmark interest rate in the nation increased to 2.5 percent on Wednesday as a result of the Bank of Canada's decision to increase its policy rate by a full percentage point, up from only 0.25 percent at the beginning of the year.
Higher central bank interest rates result in higher mortgage payments and make it more difficult for certain potential purchasers to get loans.
In the meanwhile, prices in the rental market have increased as a result of increasing interest rates and a slowdown in the real estate market. According to Rentals.ca, the national average rent in Canada increased to $1,976 per month in June, an 11.8% yearly rise.
The rental market is left to support an expanding number of individuals as ownership becomes more and more out of reach for Canadians. People are less likely to leave the rental market and purchase their first house or remain on the sidelines when loan rates rise, which is one of the contributing factors.
Inflation
The burden on Canadians' wallets has increased in light of recent yearly inflation rates. It's no secret that inflation has given Canadians a lot of trouble. The cost of almost everything has increased. For the typical Canadian, it is now more expensive to buy groceries, clothes, cars, fuel, and other things. Unfortunately, rising rental costs appear to be the norm and the cost of rent has increased by as much as 20% in certain areas.
Renting an Apartment or Home
There are various options available to you if you're wondering how to rent a home or an apartment in Canada, including Kijiji, Craigslist, local newspapers, community bulletin boards, social media groups, and even word-of-mouth.
But most of the time, tenants locate their new residences online. With that stated, it is important to use caution online as many fraudsters like to operate via classified websites. Always keep in mind that if anything seems too good to be true, it generally is.
Because no long-term commitment and long-term renting are often less expensive than purchasing a home, it might be a wise choice for newcomers.
Please keep in mind that many rentals in Canada, both furnished and unfurnished, do not come supplied, so make sure you budget for basic home necessities like furniture, dishes and utensils, linens, and even cleaning supplies.
Make sure to include this in your budget if you are bringing a pet, since some landlords may charge an additional cost.
Getting an Apartment to Rent
When you've discovered a property you like, get in touch with the landlord to arrange a time to see the apartment. The landlord will send you an application form to fill out and return if you like what you see. Please let your landlord have at least 48 hours to respond.
Your landlord will email you the lease document to examine if you are approved as a renter. If everything checks out, you will sign it, provide your deposit (more on this below), and go through the move-in details. You will get the keys to your new home on move-in day after paying the first month's rent.
Vacation Rentals
Consider short-term rentals as your first accommodation choice if you've recently arrived in Canada. Several factors make this a wise decision: Before moving anywhere, you could first wish to visit the local neighborhoods and get to know them. Additionally, some ex-pats prefer purchasing overseas accommodation based only on images to booking anything after having seen it in person. Short-term rentals, in general, provide you with a little more time and flexibility while looking for your new home away from home.
For any budget, there are several short-term rentals in Canada. It is often best to make your appointments for these services before you arrive.
Investigate and Evaluate Costs
You must first establish what sort of rent costs are normal for the neighborhood to decide on a suitable rental price. To determine how much to charge prospective renters, landlords often compare their rates to those of nearby rentals. However, sometimes they may overestimate what they can demand.
You may be able to use this information to bargain for a lower rent if a rental property is pricey in comparison to other properties in the neighborhood. In a similar vein, if you're renting in a neighborhood with a lot of abandoned homes, your landlord could be more inclined to give you a discount.
Conclusion
Yes, rental prices are rising in Canada, but there is always room for savings. With the right financial planning, you can avoid unnecessary purchases for the sake of basic needs.
See: Good Reasons Why You Need To Have A Proof Of Income
Most likely, such a rise in prices in the real estate market is temporary, so it is important not to stress too much, but treat it as a temporary difficulty. Also, if you want to save on rent, then it makes sense to haggle and look for great deals longer and even possibly consider moving to a region with cheaper rent.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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8 Ways to Raise Money Quickly for Emergencies
Guest Post | Jan 2, 2023
Image: Unsplash/Alexander Mils
You are not alone if you find yourself cash-strapped in an emergency. Six out of 10 American households experience one or more financial troubles each year. FEMA reports that one-third of American families do not have any savings to last an emergency. If you are stuck in such a situation with no funds to get you by, here are seven ways you can quickly raise money:
1. Sell Your Assets
In emergencies selling your assets can be the best way to raise money. These assets include property, vehicles, watches, jewelry, and designer clothing. Antiques like vases, paintings, and furniture in your house, can unexpectedly be worth a lot. You can sell your assets on online platforms like thredUp or eBay for quick cash.
Selling home appliances like TVs, tablets, phones, laptops, and game consoles can raise emergency funds. Online marketplaces like Decluttr, Gazelle, uSell, and Swappa are ideal places to sell home appliances and find that extra cash.
2. Get Money From Your Retirement Accounts
You can withdraw your retirement savings, such as your 401(k), early in case of an emergency. You only have to pay a 10% penalty for withdrawing from your 401(k) if you’re younger than 60. Even that is waived in case of a medical emergency.
You can also double your Roth IRA as an emergency savings account. Roth IRA allows you to withdraw your contributed sums at any time with negligible penalties. Check the rules of your employer and IRA provider regarding applicable taxes or penalties before withdrawing.
3. Organize a Garage Sale
You can always use your extra belongings lying around the house to earn some quick cash. Organizing a garage and yard sale can declutter your home and liquidate your belongings quickly to raise money. You can advertise your yard sale on Craigslist, Facebook groups, local print and online newspapers, and church bulletins. Consider putting effort into marketing your sale, such as by putting neon signs with black lettering around your neighborhood.
4. Pawn Your Items
If you have extra items in your house that you no longer require, consider selling them to a pawn shop for quick cash. A pawn shop will give you a fair value for your items, and will hold your item as collateral until you repay the money in a specific period. If you cannot pay them back, they can sell the item as they see fit.
Before selling to a pawn shop, polish up your negotiation skills, or bring along a friend who can bargain well. Pawn shops will try to pay you the minimum possible price for your item. By negotiating, you may increase the amount.
5. Get a Loan
If you have a history of paying back your loans late, it lowers your credit score. Bank loans require a good credit score and take time. However, you can still get a loan even with a bad credit score by applying for Urgent loans for bad credit. These include payday loans and collateral or secured loans.
Consider asking your place of employment for monetary aid. Many companies have policies for low-interest loans or advance salary payments for their employees. Contact your finance department for information on your company’s loan policies. Remember to repay this loan in time to avoid strains on your employability.
After securing a loan from an individual or company, draft a legal agreement and a cash memo. These measures help protect your interest. You should also set a repayment schedule to avoid miscommunication between both parties.
6. Pick Up Odd Jobs
You can offer professional services in your free time to earn extra cash. For example, you can establish local dog-walking, baby, and pet-sitting services. Statistics show that the hourly wage for babysitting is around $17, and for pet sitting, it is $14. Dog walkers can earn $15 per hour.
You can also offer to mow the lawn, wash cars, and help transport senior citizens to their routine checkups. If you can drive, sign up as a Lyft or Uber driver to earn extra cash. Rideshare drivers can make between $15 to $20 an hour. However, the exact rate will depend on where you live and your profile rating.
7. Donate Your Plasma
Donating plasma can help you raise money quickly. Its process is similar to blood donations. Instead, the organization to which you donate the blood separates the plasma from it through centrifugation, and the remaining components are delivered back into your body.
You can receive $15 to $40 from each plasma donation, and if you are in proper health, you can donate twice a week and recover quickly. Even in perfect health, you may experience short-term side effects from plasma donation, such as high temperature, body aches, fatigue, and dehydration. You may also feel dizzy, and it can sometimes escalate to fainting. To avoid suffering these consequences, take care of yourself after donating. Eat a proper meal, drink plenty of water, and get a good night’s rest.
8. Ask Family for Help
If you need money fast, consider asking your friends and family. Your parents only want what’s best for you and may provide you with funds without any strings. Other times they can give you little to no interest. However, asking someone for money in your circle can be uncomfortable, and being unable to repay them may cause tension in your relationship.
See: TransUnion: US Credit-Card Loan Delinquencies to Rise in 2023
Only borrow money from family or friends if you can repay it. Unpaid loans can cause friction between the debtor and the creditor. To avoid problems, contract your repayment terms with the lender. This measure will set clear expectations and help prevent future conflict.
Endnote
Most Americans are financially unprepared for emergencies, such as natural disasters, accidents, or medical conditions. Taking credit-card debt may seem ideal in such situations, but it requires a good credit score which may only be possible after a while.
Instead, consider borrowing money from friends or family. If your credit score limits your options, get an emergency loan from an authorized financial institution. You can also sell your assets or earn money from doing extra jobs. Consider selling the extra items in your house in a garage sale or to a pawnshop. If you are in good health, you can make quick cash by donating plasma. You can quickly raise money and effectively overcome emergencies through these methods.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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5 Ways to Raise Cash Fast in an Emergency
Guest Post | Dec 29, 2022
Image: Pixabay
No one ever thinks it'll happen to them, but financial emergencies, like unexpected medical bills or a car repair, can occur at any moment. While now isn't the time to worry about how you ended up in such a situation, finding fast ways to raise cash is generally a top priority if you find yourself in an emergency. Whether you turn to friends and family for support, sell your physical items for a quick profit, look into loans from alternative sources or even adopt a side hustle during this stressful time, here are creative ways you can raise some money in an emergency.
Get a Car Title Loan
A car title loan is a secured loan where you can use your vehicle's title as collateral in exchange for cash. Car title loans are typically short-term, but the interest rate and terms may be more lenient than those offered by other sources. They often have a high interest rate, so weighing your options and understanding the full risks is essential.
Before signing any paperwork, calculate how much you'll need to pay each month and be sure you can make payments on time. If you're applying for car title loans online, thoroughly research the lender. Check the terms and conditions and read customer reviews to ensure you get the best deal.
Consider a Payday Loan
Payday loans are short-term, unsecured cash, and are generally provided as advances due on your next payday. While they often come with high-interest rates and can be risky if not paid back in time, they may offer a viable solution for those with poor credit who need an influx of cash quickly. As with car title loans, it's essential to research all terms and conditions carefully before entering into any agreement.
The downside to payday loans is that, in some cases, the interest rates can be astronomical, so it's essential to pay attention and ensure you know what you agree to. Also, taking out too many payday loans at once could hurt your credit score.
Ask Friends and Family for Help
If you need help in an emergency, don't be afraid to reach out to your network of friends and family. You may be surprised at how many people will loan you with a reasonable interest rate or no interest. It's crucial to craft a plan for repayment that everyone is comfortable with before finalizing any agreement.
Sell Your Stuff
You never know how much your stuff is worth until you list it for sale. Look around your home and consider what items you can part with quickly to make extra cash. You may even be a better deal at the pawn shop, but remember that they take a hefty cut of the final sale. Items like electronics, jewelry, and antiques are great places to start. You can also sell your clothes, furniture, and other household items on resale sites like eBay or Craigslist.
Seek Out Alternative Loans
If you have a good credit score, you may be able to find an alternative loan with reasonable interest rates. Personal loans are a great way to access cash without the risk of accruing too much debt. With some lenders, you can apply and receive your funds in as little as one business day.
See: Tips for Choosing the Best Mortgage Lender
There are several ways to raise cash in an emergency. Whether you turn to friends and family, take out a loan or sell your items for a quick profit, there are options available that can help get you the money you need when time is of the essence. Remember to research before entering any agreement with a lender and have a plan in place.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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Halal Mortgages Emerging in Canada’s Housing Market
CBC | | Dec 21, 2022
Financial products are being adapted to match the unique needs of many Muslims
- Challenge: Like many other Muslims, Mohiuddin's religious beliefs include restrictions on paying and receiving interest. Given that a typical Canadian mortgage includes interest charges, this has added an additional challenge to his quest to stop renting and move into a house he owns.
- "Even if the interest is very low, even if the interest rate is like 0.1 per cent, if it's more than zero per cent, then we cannot deal with conventional banks," said Mohiuddin.
See: Real Estate 3.0: How Affordability and Fintech Are Driving the Ownership Revolution
- Halal Solutions: Several companies in various Canadian provinces are slowly beginning to offer Islamic, or "halal" mortgages. Halal is an Arabic term that translates to "permitted" or "allowed" in English. These mortgages are deliberately structured to adhere to both Canadian law and the belief systems of many Muslims.
- No interest but you still pay: Financial products that avoid "riba," or interest, are not free of charge just because they are free of finance charges. "People that get Islamic mortgages still pay a comparable amount that you would pay if you got a conventional mortgage. It's just that the structure of these mortgages are different," he said.
- Structural differences can include the source of the loaned money, as well as legal differences. Some mortgages more closely resemble a "rent-to-own" system, where the mortgage provider is also an owner of the home. There are also legal structures where fees are charged instead of standard interest payments.
- "Many people will look at Islamic finance and say, instead of paying interest, you're paying profits, so really it's the same thing.
- As the market for Islamic finance is less developed in Canada, Naqvi said, finding halal and religiously acceptable sources of funding to lend out for mortgages has been difficult. This can mean costs are higher as funds are more scarce.
See: Wealthsimple set to launch new ETF for Muslim investors in 2021
- Higher risk for lenders: The Edmonton-based Canadian Halal Financial Corporation is also offering halal mortgages. Co-founder Thomas Lukaszuk pointed out that the risk can be higher to lenders.
- According to Lukaszuk, his company cannot foreclose on a home due to Islamic restrictions. This can mean higher charges to mitigate that financial chance. The risk is higher, hence the cost is higher ... and we're also dealing with a much smaller critical mass.
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The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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