Islamic property finance


Well-Known Member
Dec 30, 2014
Hi guys, rather than start a new thread. Please could anyone comment on whether Al Baraka was better or Fnb Islamic for home loans?

I am a client of Fnb islamic however the pre approval does not require any documents and therefore im worried that at the time of actual home loan, the rate will differ when they take into account all expenses etc. It almost seems to me that i will not know the exact rate until Im finalising the loan, in which case i will have to go with FNb whether i like it or not

With Al Barak, the pre approval does request all documents and expenses etc and they give you a pre approved rate so you know exactly what your getting into without actually taking it on


Honorary Master
May 3, 2005
I will repeat, there is nothing shariah compliant about shariah compliant finance

putting a halaal sticker on a pig doesn't make it halaal


Well-Known Member
Apr 17, 2013
Have you gotten a home loan yet anything you can share albaraka or fnb islamic?
Based on my interactions a while ago:

  • Both based on Musharaka (so difficult to get a loan to actually build your own/alterations if you have no additional security)
  • Both have a fixed profit mark up valid for one year –linked to Prime (usually prime minus certain % depending on your profile)
  • Both require building insurance cover or security, initial valuation fees and service fees.
  • Both allow additional repayments on your anniversary date (this usually attracts fees/penalties using conventional loans).

Al Baraka

  • Cheaper (utilised the corporate office- was told it was a graduate rate), possible to slightly negotiate a better rate.
  • More professional and engaging
  • The bond attorneys (appointed by Albarakah) are not too flexible, charge on scale and not really negotiable

FNB Islamic

  • Service sucks (even though done through private banker), final rate is only provided after tons of requirements.
  • Rate was more.
  • Positive: Possible ebucks increase (future rule changes possible)