WHEN Islamic home financing came on the scene, interest rates were neither as low, nor as attractive, as today. House buyers opt for them because the “interest”, or what banks called “profit sharing”, was capped at 10%.
Having seen interest rates going up to 14% during the 1997/98 crisis, 10% may be acceptable for some of them. How times have changed! Today, it is still volatile but interest rates are also at a 33-year low. And it looks like it will remain low for a while.
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