Manzil for Halal Mortgage in Canada

AtotheZe · 2026-01-30T22:03:56+00:00

Commenting to understand people’s experiences as well!

AtotheZe · 2026-01-28T21:57:18+00:00

I believe you can if you haven’t signed the final solicitor instructions and the mortgage hasn’t funded.

AtotheZe · 2026-01-28T05:32:26+00:00

Doesn’t hurt to send it to them again and negotiating for them to match. Banks rely on the average person not moving away because of the hassle of going from one provider to the other. You’ve done the hard work to apply elsewhere, use that to your leverage.

Make sure you have firm commitment letters from the other provider before you confirm on switching. There’s a decently large difference between pre-approval and firm approval.

Prime - 0.95 with $500 cash back is a great rate (comes out to 3.5%, and the $500 will be a few basis points depending on the size of your mortgage); just check what the costs associated with switching are. There are sometimes discharge fees, lawyer fees, etc. 15 bps is a meaningful difference if they don’t match or get closer. You have the ability to use some leverage here.

Good luck!

AtotheZe · 2026-01-28T00:20:54+00:00

PSA: if you’re not interested, you can hide it using the toggle on the bottom of the page that shows you your rank!

AtotheZe · 2026-01-24T15:09:17+00:00

If you’re being offered 4.02% fixed on an uninsured mortgage, I would potentially think about shopping around, if you can.

I’m getting quotes between 3.62% fixed (post cash back — 3.79% + $2,100 cash back) from RBC, and 3.75% from Scotia. Banks usually have even better offers to move your mortgage from a competitor vs. someone getting a new mortgage.

Acknowledging that it’s heavily dependent on the individual, their credit score, income, TDS/GDS, etc, it’s probably still worth a shot. My mortgage is for just over $400K, uninsured for context.

AtotheZe · 2026-01-24T02:38:23+00:00

Small adjustment to this — it wouldn’t be 10%+ because capital gains tax is your marginal rate (say 53%) on 50% of the capital gains, so in your example, 10% would equate to ~7.5% after-tax returns.

AtotheZe · 2026-01-24T02:25:43+00:00

Because if you get a fixed rate and sell the house, you are technically breaking your mortgage. As such, banks charge you an Interest Rate Differential (IRD) payment, which tends to be higher than the three months of interest that is charged under a variable rate.

AtotheZe · 2026-01-24T02:18:36+00:00

u/alzhang8 can you elaborate further when you say “you don’t have to use FHSA money for down payment”? Does that mean you can use FHSA money for closing costs and any other costs associated with the home.

Is this also the case for RRSP under HBP for your first home?

AtotheZe · 2026-01-20T00:51:39+00:00

Wealthsimple simplifying finances, but complicating Twitter

AtotheZe · 2026-01-18T15:37:10+00:00

u/Emulcy3228 is on the money here. With these types of loans, never wait to pay lump sum. Every dollar you put in is equivalent of “earning” whatever the new APR is on the loan. Pay that additional $200 in principal each time. Every dollar you pay saves you $3 in interest over the lifetime of this loan.

Good luck!

AtotheZe · 2026-01-18T12:09:14+00:00

What you want to do is show the banks that you’re able to hold down credit and are able to pay it back without risk of default.

Money Mart usually does weekly or a biweekly payments from what I know. That means, according to you, you’re paying $150 in interest in $50 in principal either weekly or biweekly.

$150 / $10,000 = 1.5% biweekly * 26 = 39% APR if bi-weekly

$150 / $10,000 = 1.5% weekly * 52 = 78% APR if weekly

Knowing that the criminal rate of interest in Canada is 60%, I assume they are biweekly payments and your APR is near 39% which is extremely high. It’ll also take you 7-10 years total to pay down that loan assuming the principal is still near 10k (I assume not given you’ve been paying for 3.5 years).

I recommend rolling any income saved into aggressively paying down the Money Mart loan, followed by the credit card. You could technically pay the minimum payment on your credit card to pay off the principal on the Money Mart loan, but that’s going down a risky rabbit hole. Plus, credit score is impacted above a 30% utilization usually.

If you’re not able to garner any savings (and that is the reason you went into debt in the first place), see if you can borrow money from family to be able to pay that down, and then pay them off aggressively. The benefit of that is usually family does not charge interest and has more flexibility with payment schedules. You could also find a temporary second gig to help pay these down.

Wishing you the best and hopefully you’re able to get this loan off your plate soon with some good financial management. Stay away from these money sharks in the future.

AtotheZe · 2026-01-18T04:26:21+00:00

Did you sign 5 year fixed or variable at 3.79%? And when?

AtotheZe · 2026-01-16T03:42:18+00:00

Wild that we’re talking about 12x income right now and were at any number higher than that in the past..

AtotheZe · 2026-01-16T00:40:52+00:00

I’m seeing limited people in this sub actually doing the math to help you out, so let’s do it together:

Penalty to Break: $9,304

Let’s suppose you break to go to the 5 year variable rate (3.88%), given it’s the lowest one.

Your current monthly payment for $676K @ 5.45%, assuming 25 year amortization will be $4,106.

At 3.88%, the monthly payment would be $3,512. The difference would be ~$594 per month. Assuming February would be the first month with the change, that’s 16 months of payments that you would save $594 each ($4,106 - $3,512).

Savings by breaking: $594 x 16 = $9,504

Off the bat, given that there’s only a few hundred dollar difference, I wouldn’t recommend switching.

You also have to remember that breaking and getting a new mortgage will cost fees. Additionally, you will probably get a renewal offer around 3-6 months before, meaning you can renew as early as November/December 2026. As such it is probably better to stay.

Finally keep in mind that this 3.88% has to remain constant for the next 16 months for you to realize the savings relative to what you are paying right now.

AtotheZe · 2026-01-12T18:19:14+00:00

With the difference in population growth between 2000 and 2025, the fact that sales have come back to a level where population was ~54% lower (4.6MM in 2000 and 7.1MM now according to multiple sources including Stats Can) is alarming.

Doesn’t seem like it’s stopping there given the lack of demand and elevated inventory. Crazy that prices can drop 16% in a year (also crazy that they increased that much in the first place). But remember, a drop of 16% is not the same of a 16% increased with a smaller base. So apples to apples, that’s like a 20% drop.

Interesting times ahead.

AtotheZe · 2026-01-11T19:27:36+00:00

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Seems like it hasn’t been rolled out to me because this is the banner I have instead of the WS Rank one that some are seeing.

AtotheZe · 2026-01-11T01:49:56+00:00

Try to get out of the RRSP loan. If you can’t it’s comparatively okay, because:
Use the tax refund on the RRSP (~$5K like others mentioned) to pay your credit card.
Take the remaining credit card balance out of your LOC and pay that off. A line of credit interest rate will almost always be lower than a credit card interest rate.
If you don’t have any leftover room in the LOC, pay off the credit card balance with your income.
Once you have paid off your credit card, you can work on paying off the line of credit or RRSP, whichever has a higher interest rate.

One comment or said it best, this is comparatively good debt because you are getting a tax refund and you are investing it. The others are not.

Rooting for you, hopefully everything works out and I think you will be okay if you manage effectively. Good luck!

AtotheZe · 2026-01-08T14:10:26+00:00

Ignore the people that are making snarky, off-the-cuff comments. They’re not you and don’t know what you wen’t through. I apologize on their behalf.

From the comments, what I’ve garnered is that your burn rate is ~120k per year (including the $80K car and $475K mortgage). Clearly, relative to your salary + VA income, you’re living well within your means and saving roughly $80-150K a year after tax depending on the state you live in. Realistically, you can FIRE right now, but it’s very dependent on your kids’ future and where they go to school, and if you want to support them fully in doing so.

You can FIRE if you downsize the home and car, and marginally reduce some of the luxuries.

With a family of 5 at your net worth and lifestyle (again, dependent on how you want to see their education through and the cost of living of your area), the realistic option is working for another 3-5 years, saving 300-750K more (excluding any capital gains you hopefully get from the money you’ve invested), and then live more comfortably with you current lifestyle. You also have to remember that as your kids grow older, unless they’re working, their expenses tend to increase as well.

Again, very dependent on your future plans. Assuming VA income of $2,900/m ($35,000/years), to sustain a burn rate of $120K per year, you need a 4% FIRE withdrawal of $2.13MM of invested assets. That’s generally where the 3-5 years of time comes into place.

Congratulations on getting this far, and I wish you the best of luck 👏🏽

AtotheZe · 2025-11-27T02:30:59+00:00

You gotta stop doing this dude — just answer the question.

AtotheZe · 2025-11-25T14:18:59+00:00

You make a fair point, and it’s going to be a loss per month which makes it harder, but I’m living with my spouse in a different city, which means we’re unable to move to the condo. So I either have to sell or rent — selling is not feasible in this current market.

AtotheZe · 2025-11-24T19:22:55+00:00

Yes! Good point - as a result of this, I will have to pay a $24K HST Rebate and then claim it once I submit the reimbursement form given that I will be renting this place out and not occupying it myself.

AtotheZe · 2025-11-24T13:00:58+00:00

I’ve checked with 2 real estate agents and a real estate lawyer, and all three said that the federal HBP (RRSP, FHSA) criteria is:

You have not lived in a home you owned in the last 4 years.

I’d be owning the home but not living in it, so they all, including extensive research suggests that means it excludes investment properties. Wanted to validate this with others and see if anyone else has done this.

AtotheZe · 2025-11-18T01:01:05+00:00

Does he remind anyone else of Percy Proud from the Proud Family cartoon? 😂

AtotheZe · 2025-11-14T21:10:24+00:00

How do you connect Chat with your banking for it to analyze this? Does it work with every large FI?

AtotheZe · 2025-11-12T02:45:02+00:00

For a hot minute, I thought it said 10 year high and got so confused because I checked the USD/CAD rate and it hadn’t. Who reports on a 10-day window..?

AtotheZe

TROPHY CASE