Is AYA financial shariah compliant?

Answered according to Hanafi Fiqh by

Assalam u alaikum Mufti Sahab,

I have a friend who recently moved to Sarnia (closer to Toronto) and has inquired about Halal Mortgage financing similar to UIF in the US. He was told that Aya financial might be the closest halal source for mortgage financing in all of Canada and some people have doubts in the operating model. Can you please confirm if that is accurate? Have you seen Aya financial contracts to be considered halal and according to Shariah? I have a copy of the contract which i’ll attach for your reference.

I would really appreciate your guidance in this sensitive matter. 

JazakAllah khairan



In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh         

Aya Financial is an intermediary that has designed a home buying scheme. Aya financial is not the actual financer. Rather, they are the intermediary that links the customer and the financer. The financer and customer mutually agree to be bound by the provisions of the “declining balance AYA residential property financing agreement.”

In the enquired case, the financier is MOYA financial. MOYA financial is a credit union based out of Hamilton Ontario

There is no agreement between AYA and the customer on any of the contracts.

Framework of AYA Financial

  • Ø Customer selects a house and contributes a minimum of 20% of the cost 
  • Ø The financier contributes to the remaining portion and holds shares in proportion to the contribution. 
  • Ø Throughout the course of the agreement, the customer pays an equal monthly rate which is composed of (a) the user fee in exchange of exclusive use of the property and (b) in buying the remaining shares of the house 
  • Ø As the months go by, the shares decrease and the user fee decreases as well
  • Ø The customer pays the user fee until he becomes 100% owner of the house

You have attached four documents:

  1. Schedule B: AYA Residential Property Financing Agreement
  2. Schedule A: Additional Provisions
  3. Schedule of Additional Provisions
  4. General Assignment of Rents

After Studying the AYA financing model and thoroughly analyzing the above-mentioned documents, it is our submission that AYA is not Shariah compliant. It contravenes the laws of Shariah for the following reasons:

  1. AYA advertises a diminishing musharakah, however, the contracts do not reflect any shape or form of a musharakah. The financer is treating this contract to be a conventional diminishing balance mortgage.
  2. The financier does not share in the expenses of maintaining the property
  3. The financier does not share in profit or loss at the time of sale.
  4. At the end of the contract, if the shares are not bought, MOYA will charge a user fee for the “liquidated losses.” This shows that MOYA is treating this agreement as a loan and not an investment venture.

And Allah Ta’āla Knows Best

Mirza-Zain Ibn Ameer Baig

Student – Darul Iftaa

Montréal, Québec, Canada

Checked and Approved by,         


Mufti Ebrahim Desai.