My husband and I have been thinking about purchasing a house soon insha’Allah. We don’t want to get a mortgage through the conventional banks as we are aware that Riba is haram. Therefore, we want to buy a house through Halal Mortgage from a Halal Institution that is interest-free. We know that if you give a down payment less than 20%, there’s a regulatory CMHC Insurance that we need to pay. Since giving 20% will be very difficult for us, we wanted to put 10% down but we must pay for the CMHC insurance as this is a Canadian regulation for home buyers who cannot give 20% down payment. My question is, would this be permissible to do? I know insurance is also not allowed but since it is quite difficult for us to pay 20%, we can only afford to pay 10%, which means we are unable to avoid the CMHC Insurance even with a Halal Mortgage as this is something that is regulated within Canada.
Please get back to me on this at your earliest convenience and let me know if you have any questions.