Minister Dismisses BQ MP’s Claim That Emphasizing ‘Halal Mortgages’ Implies Introducing ‘Sharia Law’

The federal government has responded to criticism from an MP regarding its recent budget plan to explore the concept of “halal mortgages” for Muslim Canadians, refuting claims that it could lead to the recognition of Sharia law in government financing.

Mr. Champoux expressed concerns, stating that introducing an element of Sharia law into Canadian legislation would set a dangerous precedent, as reported by Blacklock’s Reporter.

The budget document Fairness For Every Generation, released recently, mentioned that cabinet is considering new measures to “expand access to alternative financing products,” including halal mortgages.

Halal mortgages would provide modified payment structures to avoid lending money and charging interest, in accordance with Islamic law that forbids usury.

The budget document proposed options such as “changes in the tax treatment of these products or a new regulatory sandbox for financial service providers, with appropriate consumer protections,” to facilitate the implementation of halal mortgages.

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Revenue Minister Marie-Claude Minister Bibeau addressed Mr. Champoux in the House, assuring that the government is examining the issue “to ensure it is done properly, nothing more.”

She emphasized that the government is not proposing the financial tool and is simply interested in determining its fairness and compliance with regulations. The primary goal is to assess the issue, with no intention of supporting it until its fairness is confirmed.

Key findings from the research highlighted the necessity of developing non-interest-based financing options to cater to the housing needs of Canada’s 1.8 million observant Muslims, along with providing culturally relevant housing services.

The discussion on halal mortgages stemmed from in-house Privy Council research involving Muslim focus groups in 2023.