The federal government is facing criticism from an MP regarding its recent budget plan to explore the concept of “halal mortgages” for Muslim Canadians, with concerns raised about the potential recognition of Sharia law in government financing.
Mr. Champoux expressed his reservations, stating that allowing a religious exception of this nature could set a troubling precedent. He highlighted the introduction of Sharia law into the Canadian legislative regime as a serious concern.
The budget document titled Fairness For Every Generation revealed that cabinet is considering new measures to “expand access to alternative financing products,” including halal mortgages. These mortgages are designed to comply with Islamic law, which prohibits usury, by offering modified payment structures that do not involve charging interest.
The document suggests potential options such as “changes in the tax treatment of these products or a new regulatory sandbox for financial service providers, while ensuring adequate consumer protections are in place.”
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Responding to Mr. Champoux in the House, Revenue Minister Marie-Claude Minister Bibeau emphasized that the government’s focus is on ensuring proper implementation rather than endorsing the concept. She stated, “This is a financial tool that is absolutely not being proposed by our government. We are interested in the product. We want to know if it is fair, if it complies with the rules. We are simply going to look at the issue, but our government has no intention of supporting it. We just want to make sure that it is fair.”
The research highlighted the necessity of developing “financing options that are not interest-based, providing culturally sensitive housing” for the 1.8 million observant Muslims in Canada, as well as offering “culturally relevant housing services.”
The discourse surrounding halal mortgages stemmed from in-house Privy Council research targeting Muslim focus groups in 2023.
