How does AHL Work?
An Ansar member wishing to buy a house or re-finance his existing interest-based mortgage is required first to invest his savings (buy shares) in Ansar Housing Limited (“AHL”) for a certain length of time. Afterwards, upon fulfilling all the application requirements of the institution, he may locate and negotiate the purchase of a house with financial support from AHL under its diminishing musharakah contract. AHL pays cash for the house and obtains legal title in its name. At this time the client transfers his investment in the institution to this house and becomes a co-owner. This process forms a partnership (Mudhaarabah) relationship with the institution and the individual. This partnership leases the house to the client at an agreed rent. According to the terms of the agreement between partners, the client may purchase extra ownership shares in the house at future dates and thereby in due course come to own the property in its entirety. The price of ownership shares is calculated b
