Canada’s National Housing Agency has issued a report that Shariah-compliant mortgages would pose no legal problems, nor would other Islamic financial products. The 88-page study was done at the direction of Canada Mortgage and Housing Corp., by the assistance of Canadian law firm Gowling, Lafleur Henderson LLP.

“Islamic financial products should not present any particular difficulties under Canadian accounting standards,” says the study by the Canadian law firm Gowling, Lafleur Henderson LLP, released in late January.

Apparently, no Candadian chartered banks currently offer Islamic mortgages. The Canada Mortgage and Housing Corp. report says there would be no legal obstacles if private entities offered the financial services to Canada’s Muslim community, believed to number at least 700,000.

The Islamic mortgages would follow typically “diminishing musharakah” or similar installment-purchase models employed by Islamic financial instruments.

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