Canadian Halal Investor.

EQRAZ Halal Mortgage, Reviewed

Mississauga-based monthly Murabaha home financing — published rates, eligibility, fees, and Shariah governance, straight from EQRAZ's official documents.

8.70%Special-offer profit rate · 5-yr fixed (Sept 25, 2026)
700Minimum beacon / FICO score
80%Maximum finance-to-value
$750KMaximum financing · up to $1.25M exceptional
Last verified: September 2026, against EQRAZ's published rates page, product guide, qualification criteria, closing-process documents, and Shariah certificates. Profit rates update monthly — confirm current terms with EQRAZ directly.

What EQRAZ is

EQRAZ Inc. ("Your Home for Halal Finance") is a halal home-financing company based at 2068 Mississauga Rd, Mississauga, Ontario. Its sole mortgage product is a monthly Murabaha contract: you hold full title to the property from day one, and EQRAZ holds a standard Canadian legal mortgage charge on it. One important distinction the company makes itself: in one of its published fatwas it states, "This certificate does not imply that EQRAZ is the Financier. Rather, EQRAZ' role is to ensure end-to-end Shariah compliance of your halal home financing." The company says its funding flows through a Wakala agreement with a Canadian Schedule One bank, and its CEO has stated publicly (to the outlet Livabl) that EQRAZ secured halal funding from a Canadian bank.

This review covers only what EQRAZ has published in its own official documents: its rates page (effective September 25, 2026), product guide, Halal Mortgage Qualification Criteria (dated January 23, 2026), approval-and-closing process documents, and its Shariah board certificates. Anything EQRAZ has not published or we could not verify is flagged as missing, not guessed at.

Important for Ontario readers. EQRAZ's homepage states, verbatim: "EQRAZ Inc. is not licensed as a mortgage brokerage in Ontario and is not offering, arranging, or soliciting mortgages in Ontario. Nothing on this website constitutes an offer or solicitation of mortgage brokerage services to Ontario residents. This notice applies to Ontario only; EQRAZ's services remain available in provinces where it is authorized to operate." The company is headquartered in Ontario but is not currently offering its mortgages there.

Provinces served

EQRAZ advertises "funding available immediately across Canada" and "across all provinces," but its homepage notice carves Ontario out explicitly. No province-by-province list was found in EQRAZ's published documents. A third-party comparison site lists EQRAZ in all 10 provinces, but that is a third-party claim, not EQRAZ's own list. One detail to reconcile before applying: EQRAZ's January 2026 qualification criteria set property-location rules for Ontario (large population centres with posted population over 100,000, versus over 250,000 in the rest of Canada), even though its current homepage notice says it is not soliciting Ontario mortgages. Ask EQRAZ directly which provinces it currently serves and gets funded in, and in writing.

The structure: monthly Murabaha

EQRAZ offers one contract type only — monthly Murabaha (cost-plus sale). It deliberately does not offer Musharaka or Ijara in Canada: EQRAZ states those structures would break either Shariah law or Canadian law here, citing double capital-gains and land-transfer taxation, the co-owner obligations a financier must bear, and the absence of institutional funding willing to take property-price risk. The company also argues a traditional Murabaha — where the financier buys the home and resells it at the full-term price — is prohibitive: its example is an $800,000 financing sold back at $1.3 million, which you would owe in full even if you closed out three months later. The "monthly" design is meant to solve that.

How it worksper EQRAZ's product guide

After selecting a property, a mortgage broker assists your application. On approval, EQRAZ issues a standard Offer Letter for your lawyer's review. You then sign a Murabaha Agreement and a standard Canadian legal mortgage charge. You hold full title from the beginning — EQRAZ holds only the mortgage charge.

Monthly payments stay constant through each renewable term, per the amortization schedule in the Murabaha Agreement, and are automatically deducted from your designated bank account. You can partially or fully prepay at any time (prepayment charges apply — see below).

The Tawarruq questionEQRAZ addresses it head-on

EQRAZ's own scholar FAQ includes the question: "EQRAZ product seems to be based on Tawarruq. How is this halal, and how is Tawarruq used by EQRAZ different from organized Tawarruq?" The scholars answer it in EQRAZ's video series, alongside questions on how EQRAZ maintains Shariah compliance when its capital comes through a Wakala agreement with a bank or credit union, and why profit calculated on an amortization schedule differs from riba.

The substance you should check yourself: the three contracts you sign are the Offer Letter, the Murabaha Agreement, and the Legal Mortgage Charge. EQRAZ also names the other legal paperwork standard in Canada. Scholars differ on Tawarruq-based products generally — the honest move is to read the contracts and ask a scholar you trust, not to take any reviewer's word for it.

Late payments, per EQRAZ's own FAQ: default charges payable to its mortgage administrator are beyond EQRAZ's control; EQRAZ pays them on your behalf and recovers them from you, and applies SSB-approved delay penalties (compliant with AAOIFI) to discourage delays. The additional amounts are donated to charity — EQRAZ does not profit from them. For Shariah questions, EQRAZ invites direct emails to its scholars (shariah@eqraz.com) with a 48-hour response, and offers a direct call with a scholar on request.

Current rates

EQRAZ publishes its profit rates on its website and updates them monthly. The current page is effective September 25, 2026:

TermPosted profit rateSpecial offer
1-year9.03%8.03%
2-year9.39%8.39%
3-year9.47%8.47%
4-year9.60%8.60%
5-year9.70%8.70%

Three caveats from the rates page itself. First, all financing is contingent on meeting the financier's credit criteria. Second, special-offer eligibility is subject to additional terms and conditions the financier sets — the headline 8.70% is not automatically your rate. Third, rates may be changed or withdrawn at any time without notice. As with Manzil, only the signed commitment letter binds both parties.

Eligibility

From EQRAZ's Halal Mortgage Qualification Criteria (dated January 23, 2026). One honesty note: the document carries a disclaimer that these are "draft guidelines for internal use only," so treat them as EQRAZ's published criteria rather than a binding offer — and confirm any change in writing:

CriterionPublished requirement
Minimum credit score700 beacon / FICO — derogatory history needs a reasonable explanation; only one major credit occurrence (bankruptcy, consumer proposal, etc.)
Gross debt service ratio39% max
Total debt service ratio44% max
Maximum finance-to-value80% (minimum 20% down payment from own resources)
Acceptable down payment sourcesGifted family funds, RRSP, TFSA, FHSA, non-registered investments, asset sales, chequing/savings — payments only through a Canadian bank account with 90-day history; no cash or overseas transfers
Minimum / maximum financingCAD $100,000 minimum; CAD $750,000 maximum (up to CAD $1,250,000 on a case-by-case exceptional basis)
Amortization / termUp to 25 years (300 months); terms up to 5 years, renewable
Stress testN/A (not applied)
Financing purposesPurchase, transfer-switch
Income rulesStandard salaried guidelines (paystubs, T4s, employment letter, 90-day bank history) plus self-employed documentation (2 years T1/NOA, business statements, license). Rental income is not allowed as qualifying income. Canada Child Benefit allowed with conditions. US/foreign employer income acceptable if declared in Canada.
AppraisalFull appraisal from the financier's approved, AACI-accredited appraisers list
PrepaymentsAnnual prepayments up to 20% of the original principal per year without charge; early payout above that costs the greater of 3 months' profit or the profit rate differential (PRD)
Property rulesPrimary owner-occupied residential, in major urban centres with demonstrated ongoing resale demand (population over 100,000 in Ontario / over 250,000 elsewhere); max 4 units with 1 owner-occupied; residential zoning; minimum 700 sq ft for houses, 500 sq ft for condos. Ineligible: pre-construction, commercial zoning, condo hotels, agriculture, mixed use
Other limitsNo second mortgages allowed; maximum 2 owned properties

One inconsistency to flag: EQRAZ's marketing materials (product page and FAQ) state "offers second and third mortgages, subject to credit approval," while the January 2026 qualification criteria say "no second mortgages allowed." The criteria document is the newer and more specific source — ask EQRAZ which is current before counting on it.

Fees

EQRAZ's product guide points readers to an "EQRAZ Fee Schedule" on its documents page, but we could not retrieve a current published fee schedule. What we could verify, from EQRAZ's closing-process documents published on its own site (2023–2025):

Because these figures come from process documents rather than the referenced fee schedule, confirm every fee — application, commitment, legal, appraisal, discharge — in writing before you compare total cost. If a broker fee is involved, get it disclosed the same way.

Shariah governance — as EQRAZ states it

Presented exactly as EQRAZ states it — the company's claims about its own governance, not our endorsement:

Two honest caveats. First, the published certificates are from 2021–2022; ask EQRAZ for the current annual Shariah compliance report and the latest audit. Second, EQRAZ's own fatwa disclaimer (quoted above) says it is not the financier — so also ask who the financier is, and which Shariah review covers that financing arrangement specifically. Scholars differ on Tawarruq-based products generally. Our Ask a Scholar service can relay your specific question to a scholar.

Strengths & trade-offs

StrengthsTrade-offs
Rate transparency. EQRAZ publishes profit rates and updates them monthly — the most transparent rate disclosure of any Canadian halal mortgage provider.Rates are high. Even the 5-year special-offer rate (8.70%) sits well above Manzil's 5-year Musharaka starting rate (6.65%) and above conventional posted rates. EQRAZ's own blog ("Why Are Halal Mortgages More Expensive") explains the cost of halal capital — read it before you compare.
Full title from day one. You hold title and absorb all property-price upside; EQRAZ holds only a mortgage charge.Not licensed in Ontario. A Mississauga-headquartered company that cannot currently offer mortgages to Ontario residents — Canada's largest market.
Prepayment flexibility. Partial or full prepayment allowed at any time; 20% of principal per year free of charge.Early exit is expensive. Above the 20% annual allowance, the payout is the greater of 3 months' profit or the profit rate differential — the classic PRD formula that can be large early in a term.
Four named scholars + SRB audits. A named SSB, published certificates, published audit reports, and a direct scholar contact channel with 48-hour response.Certificates are 2021–2022. No current annual compliance report was verified; and the company's own fatwa says EQRAZ is not the financier — know who is.
No stress test in the published qualification criteria (N/A).Internal-draft disclaimer on the qualification criteria document; internal marketing and the criteria disagree on second mortgages.
Late-payment penalties go to charity, not to EQRAZ — approved by its SSB under AAOIFI.No current published fee schedule was retrievable; process-document fees are from 2023–2025.

What it costs — illustrative math

The rates page gives profit rates, not total cost. The example below is illustrative only, not a quote: it uses the 5-year special-offer rate from the September 25, 2026 page to show how the numbers scale. Your actual rate, amount, and amortization will differ — and confirm whether the special-offer conditions apply to you.

$400,000 financed · 25-year amortization · 8.70% profit rate

$3,275monthly payment
$982,500total paid over 25 years
$582,500profit to the financier

In the first five years alone, about $196,500 is paid while the financed balance falls to roughly $371,900.

How this compares to a conventional mortgage: at the same rate, the monthly arithmetic of an amortizing contract looks essentially the same — the difference is legal, not mathematical. The profit is fixed for the term and does not compound; late-payment penalties are donated to charity rather than kept by the financier. EQRAZ's early exit runs through the greater of 3 months' profit or the profit rate differential; a conventional lender typically charges an interest-rate-differential or three-months'-interest penalty instead.

We do not show a side-by-side conventional total here because any conventional rate we picked would be invented. Compare EQRAZ's written commitment letter against a conventional lender's written offer yourself, over the full term — not just the monthly payment.

Before you sign

Sources

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Questions, answered

Is EQRAZ's halal mortgage actually Shariah-compliant?

EQRAZ's Shariah Supervisory Board — chaired by Mufti Irshad Ahmad Aijaz, with Mufti Faraz Adam, Shaikh Salah Fahd Al Shahloub, and Shaikh Muhammad Ahmad Sultan — approved the monthly Murabaha product documents, with the Shariyah Review Bureau (Bahrain) leading ongoing supervision and Shariah audits on the board's behalf. EQRAZ's own certificate notes that it is not the financier; its role is ensuring end-to-end Shariah compliance. Scholars differ on Tawarruq-based products generally, so consult a scholar you trust before signing.

What are EQRAZ's current profit rates?

On EQRAZ's rates page effective September 25, 2026, posted profit rates run 9.03% (1-year), 9.39% (2-year), 9.47% (3-year), 9.60% (4-year), and 9.70% (5-year), with special-offer rates of 8.03%, 8.39%, 8.47%, 8.60%, and 8.70% respectively. Rates update monthly and can be changed or withdrawn without notice; special-offer eligibility is subject to additional terms.

Which provinces does EQRAZ serve?

EQRAZ's homepage states it is not licensed as a mortgage brokerage in Ontario and is not offering, arranging, or soliciting mortgages to Ontario residents, while advertising funding "across all provinces" for provinces where it is authorized to operate. No province-by-province list was found in its published documents — confirm your province is served before applying.

What credit score and income ratios does EQRAZ require?

EQRAZ's Halal Mortgage Qualification Criteria (dated January 23, 2026) list a minimum beacon/FICO score of 700, a maximum gross debt service ratio of 39%, and a maximum total debt service ratio of 44%. Maximum financing is CAD 750,000 (up to CAD 1,250,000 on a case-by-case basis) at up to 80% finance-to-value, with amortization up to 25 years. Rental income cannot be used as qualifying income.

What fees does EQRAZ charge?

EQRAZ's published closing-process documents list a CAD 500 application fee, a CAD 2,500 non-refundable partial commitment deposit (applied toward the commitment fee at closing), and a commitment fee of the higher of CAD 5,000 or 2% of the financing amount. The product guide references a separate "EQRAZ Fee Schedule," but a current version of that schedule was not retrievable — get every fee confirmed in writing before comparing.

What happens if I pay off an EQRAZ mortgage early?

EQRAZ allows partial or full prepayment at any time, but prepayment charges apply: up to 20% of the original principal per year is free of charges, and amounts above that trigger a fee equal to the greater of three months' profit or the profit rate differential (PRD) — the difference between the remaining profit at the posted rate and at your rate.

Is EQRAZ the company actually financing my mortgage?

By EQRAZ's own account, no. One of its published fatwas states: "This certificate does NOT imply that EQRAZ is the Financier. Rather, EQRAZ' role is to ensure end-to-end Shariah compliance of your halal home financing." EQRAZ says its funding flows through a Wakala agreement with a Canadian Schedule One bank, and its CEO told the outlet Livabl that EQRAZ secured halal funding from a Canadian bank.

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