Halal Mortgage (Murabaha) Calculator

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Typically 10–20% of property value (Sharia requirement)

Percent

Pakistan 2025 estimate: 7–10% (fixed, disclosed upfront)

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Halal Mortgage Calculator 2025: Murabaha Home Financing in Pakistan

Halal mortgages (Murabaha) are Sharia-compliant alternatives to conventional loans. Our Murabaha calculator computes fixed monthly payments based on disclosed profit margins for 2025 Pakistan rates.

What is Murabaha Mortgage?

In Murabaha, the bank buys the property and sells it to you at a markup (profit). You pay in installments — no interest, just transparent profit.

  • Sharia Basis: Cost + profit disclosed upfront (Quran 2:275)
  • Ownership: Property in your name from day 1
  • Fixed Payments: No variable rates
  • Early Repay: Allowed without penalty

Murabaha vs Conventional Mortgage

AspectMurabaha (Halal)Conventional
MechanismCost + fixed profitInterest on loan
RibaNoYes
OwnershipBuyer immediateBank until paid
Rates 2025 PK7–10%12–18%
PenaltyNone for early payYes

2025 Pakistan Rates (Estimate)

BankProfit RateDown Payment
Meezan Bank8.5–9.5%20%
Al Baraka7.5–9%15–20%
Dubai Islamic8–10%20%

Sample: PKR 50M Property, 20% Down, 8.5% Profit, 20 Years

  • Financed: PKR 40M
  • Total Profit: PKR 28.8M
  • Total Payable: PKR 68.8M
  • Monthly: PKR 286,667

How Murabaha Works

  1. Bank buys property for PKR 40M
  2. Sells to you for PKR 68.8M (cost + profit)
  3. You pay fixed installments over 20 years
  4. Title in your name immediately

Eligibility in Pakistan

  • Muslim, 25+ years
  • Stable income (salaried/freelancer)
  • 20% down payment
  • Credit check (SBP compliant)

Pro Tips

  • Compare Banks: Meezan vs UBL Amanah
  • Fixed Profit: Lock in now (rates rising)
  • Down Payment: Save 20% via Islamic savings
  • Early Pay: No penalty — accelerate

Related Calculators

FAQs

Is Murabaha halal? Yes — AAOIFI approved, no Riba.

Higher than conventional? Slightly, but ethical.

Refinance possible? Yes, to another halal provider.

For NRPs? Yes, via Meezan NRP scheme.

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