Perceived fairness in Islamic home financing: Comparison between Al-Bay’bithaman Ajil and Musharakah Mutanaqisah partnership contracts

Perceived fairness in Islamic home financing: Comparison between Al-Bay’bithaman Ajil and Musharakah Mutanaqisah partnership contracts

While many see housing sector as a commodity, there are still many people in Malaysia who fail to own homes and many are forced to rent or stay away from urban areas. This paper aims to provide information and disclosure of available loan opportunities for house purchases in Malaysia. Apart from the...

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Main Authors: Noordeen, Mohamed Imtiyaz, Kassim, Salina, Haron, Nor Zalina
Format: Article
Language:English
Published: Malaysia Institute of Planners 2017
Subjects:
H Social Sciences (General)
HG Finance
HG3368 Islamic Banking and Finance
Online Access:http://irep.iium.edu.my/60133/
http://irep.iium.edu.my/60133/
http://irep.iium.edu.my/60133/
http://irep.iium.edu.my/60133/1/015%20Imtiyaz%20Salina%20PMJ.pdf
id iium-60133
recordtype eprints
spelling iium-601332017-12-15T03:02:03Z http://irep.iium.edu.my/60133/ Perceived fairness in Islamic home financing: Comparison between Al-Bay’bithaman Ajil and Musharakah Mutanaqisah partnership contracts Noordeen, Mohamed Imtiyaz Kassim, Salina Haron, Nor Zalina H Social Sciences (General) HG Finance HG3368 Islamic Banking and Finance While many see housing sector as a commodity, there are still many people in Malaysia who fail to own homes and many are forced to rent or stay away from urban areas. This paper aims to provide information and disclosure of available loan opportunities for house purchases in Malaysia. Apart from the importance among buyers, it is also seen as important from the perspective of property valuers and professionals involved in housing industry. Thisstudy compares the perceive fairness between three types of home financing that are available in Malaysia, namely conventional home loan, al-bay’ bithaman ajil, and musharakah mutanaqisahpartnership (MMP) contracts among the customers in Malaysia. The study conducts a survey among 100 respondents to examine the relationship betweencustomer intentions to use Islamic home financing based of MMP. The study concludes that the MMP has several advantages and cheaper over the BBA for the customer. Apart from being unanimity Shari’ah-compliant, it can be made to keep away from interest completely by means of practicing rental or house price index at the same time as reducing the cost of homes and the duration of financing. This paper concludes by suggesting recommendations for the appropriate actions to address the issues and challenges facing the MMP home finance products and deregulate BBA in Malaysia. Malaysia Institute of Planners 2017 Article PeerReviewed application/pdf en http://irep.iium.edu.my/60133/1/015%20Imtiyaz%20Salina%20PMJ.pdf Noordeen, Mohamed Imtiyaz and Kassim, Salina and Haron, Nor Zalina (2017) Perceived fairness in Islamic home financing: Comparison between Al-Bay’bithaman Ajil and Musharakah Mutanaqisah partnership contracts. Planning Malaysia : Journal of the Malaysian Institute of Planners, 15 (4). pp. 35-44. ISSN 1675-6215 E-ISSN 0128-0945 http://www.planningmalaysia.org/index.php/pmj/article/view/315/267 10.21837/pmjournal.v15.i4.315
repository_type Digital Repository
institution_category Local University
institution International Islamic University Malaysia
building IIUM Repository
collection Online Access
language English
topic H Social Sciences (General)
HG Finance
HG3368 Islamic Banking and Finance
spellingShingle H Social Sciences (General)
HG Finance
HG3368 Islamic Banking and Finance
Noordeen, Mohamed Imtiyaz
Kassim, Salina
Haron, Nor Zalina
Perceived fairness in Islamic home financing: Comparison between Al-Bay’bithaman Ajil and Musharakah Mutanaqisah partnership contracts
description While many see housing sector as a commodity, there are still many people in Malaysia who fail to own homes and many are forced to rent or stay away from urban areas. This paper aims to provide information and disclosure of available loan opportunities for house purchases in Malaysia. Apart from the importance among buyers, it is also seen as important from the perspective of property valuers and professionals involved in housing industry. Thisstudy compares the perceive fairness between three types of home financing that are available in Malaysia, namely conventional home loan, al-bay’ bithaman ajil, and musharakah mutanaqisahpartnership (MMP) contracts among the customers in Malaysia. The study conducts a survey among 100 respondents to examine the relationship betweencustomer intentions to use Islamic home financing based of MMP. The study concludes that the MMP has several advantages and cheaper over the BBA for the customer. Apart from being unanimity Shari’ah-compliant, it can be made to keep away from interest completely by means of practicing rental or house price index at the same time as reducing the cost of homes and the duration of financing. This paper concludes by suggesting recommendations for the appropriate actions to address the issues and challenges facing the MMP home finance products and deregulate BBA in Malaysia.
format Article
author Noordeen, Mohamed Imtiyaz
Kassim, Salina
Haron, Nor Zalina
author_facet Noordeen, Mohamed Imtiyaz
Kassim, Salina
Haron, Nor Zalina
author_sort Noordeen, Mohamed Imtiyaz
title Perceived fairness in Islamic home financing: Comparison between Al-Bay’bithaman Ajil and Musharakah Mutanaqisah partnership contracts
title_short Perceived fairness in Islamic home financing: Comparison between Al-Bay’bithaman Ajil and Musharakah Mutanaqisah partnership contracts
title_full Perceived fairness in Islamic home financing: Comparison between Al-Bay’bithaman Ajil and Musharakah Mutanaqisah partnership contracts
title_fullStr Perceived fairness in Islamic home financing: Comparison between Al-Bay’bithaman Ajil and Musharakah Mutanaqisah partnership contracts
title_full_unstemmed Perceived fairness in Islamic home financing: Comparison between Al-Bay’bithaman Ajil and Musharakah Mutanaqisah partnership contracts
title_sort perceived fairness in islamic home financing: comparison between al-bay’bithaman ajil and musharakah mutanaqisah partnership contracts
publisher Malaysia Institute of Planners
publishDate 2017
url http://irep.iium.edu.my/60133/
http://irep.iium.edu.my/60133/
http://irep.iium.edu.my/60133/
http://irep.iium.edu.my/60133/1/015%20Imtiyaz%20Salina%20PMJ.pdf
first_indexed 2023-09-18T21:25:14Z
last_indexed 2023-09-18T21:25:14Z
_version_ 1777412147155828736

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