A comparative analysis of financial affordability in Islamic home financing instruments in Malaysia

Purpose – This study aims to compare and contrast the financial affordability of Islamic home financing instruments such as bay’ bithaman ajil and musharakah mutanaqisah (MM) offered by various home financing institutions in Malaysia. Design/methodology/approach – Mathematical simulations were ca...

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Main Authors:	Md Zabri, Mohd Zaidi, Haron, Razali
Format:	Article
Language:	English English
Published:	Emerald Publishing Limited 2019
Subjects:	HB126.4 Islamic Economics HG Finance HG3368 Islamic Banking and Finance
Online Access:	http://irep.iium.edu.my/72407/ http://irep.iium.edu.my/72407/ http://irep.iium.edu.my/72407/1/IJHMA-11-2018-0090.pdf http://irep.iium.edu.my/72407/7/72407_A%20comparative%20analysis%20of%20financial%20affordability%20in%20Islamic%20home%20financing%20instrumentsin%20Malaysia_Scopus.pdf

id	iium-72407
recordtype	eprints
spelling	iium-724072020-02-14T07:58:28Z http://irep.iium.edu.my/72407/ A comparative analysis of financial affordability in Islamic home financing instruments in Malaysia Md Zabri, Mohd Zaidi Haron, Razali HB126.4 Islamic Economics HG Finance HG3368 Islamic Banking and Finance Purpose – This study aims to compare and contrast the financial affordability of Islamic home financing instruments such as bay’ bithaman ajil and musharakah mutanaqisah (MM) offered by various home financing institutions in Malaysia. Design/methodology/approach – Mathematical simulations were carried out in examining the financial affordability (or lack thereof) of various Islamic home financing by both Islamic commercial banks (ICB) and financial cooperatives (FC). Findings – This study has shown that MM by FC is a workable, more financially affordable option to potential homeowners. Unlike ICB, MM by FC uses rental rates as a benchmarking tool because of its inherent nature of flexibility. Research limitations/implications – MM by FC has the potential to reduce the cost of home acquisition (purchase affordability) and the amount of monthly installments (repayment affordability) of homeowners in Malaysia. Originality/value – This study shows the financial implication of unaffordable Islamic home financing instruments may have on the Malaysian households, which were derived from using official data from various government agencies. Emerald Publishing Limited 2019-05-29 Article PeerReviewed application/pdf en http://irep.iium.edu.my/72407/1/IJHMA-11-2018-0090.pdf application/pdf en http://irep.iium.edu.my/72407/7/72407_A%20comparative%20analysis%20of%20financial%20affordability%20in%20Islamic%20home%20financing%20instrumentsin%20Malaysia_Scopus.pdf Md Zabri, Mohd Zaidi and Haron, Razali (2019) A comparative analysis of financial affordability in Islamic home financing instruments in Malaysia. International Journal of Housing Markets and Analysis. pp. 1-20. ISSN 1753-8270 (In Press) https://doi.org/10.1108/IJHMA-11-2018-0090
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English English
topic	HB126.4 Islamic Economics HG Finance HG3368 Islamic Banking and Finance
spellingShingle	HB126.4 Islamic Economics HG Finance HG3368 Islamic Banking and Finance Md Zabri, Mohd Zaidi Haron, Razali A comparative analysis of financial affordability in Islamic home financing instruments in Malaysia
description	Purpose – This study aims to compare and contrast the financial affordability of Islamic home financing instruments such as bay’ bithaman ajil and musharakah mutanaqisah (MM) offered by various home financing institutions in Malaysia. Design/methodology/approach – Mathematical simulations were carried out in examining the financial affordability (or lack thereof) of various Islamic home financing by both Islamic commercial banks (ICB) and financial cooperatives (FC). Findings – This study has shown that MM by FC is a workable, more financially affordable option to potential homeowners. Unlike ICB, MM by FC uses rental rates as a benchmarking tool because of its inherent nature of flexibility. Research limitations/implications – MM by FC has the potential to reduce the cost of home acquisition (purchase affordability) and the amount of monthly installments (repayment affordability) of homeowners in Malaysia. Originality/value – This study shows the financial implication of unaffordable Islamic home financing instruments may have on the Malaysian households, which were derived from using official data from various government agencies.
format	Article
author	Md Zabri, Mohd Zaidi Haron, Razali
author_facet	Md Zabri, Mohd Zaidi Haron, Razali
author_sort	Md Zabri, Mohd Zaidi
title	A comparative analysis of financial affordability in Islamic home financing instruments in Malaysia
title_short	A comparative analysis of financial affordability in Islamic home financing instruments in Malaysia
title_full	A comparative analysis of financial affordability in Islamic home financing instruments in Malaysia
title_fullStr	A comparative analysis of financial affordability in Islamic home financing instruments in Malaysia
title_full_unstemmed	A comparative analysis of financial affordability in Islamic home financing instruments in Malaysia
title_sort	comparative analysis of financial affordability in islamic home financing instruments in malaysia
publisher	Emerald Publishing Limited
publishDate	2019
url	http://irep.iium.edu.my/72407/ http://irep.iium.edu.my/72407/ http://irep.iium.edu.my/72407/1/IJHMA-11-2018-0090.pdf http://irep.iium.edu.my/72407/7/72407_A%20comparative%20analysis%20of%20financial%20affordability%20in%20Islamic%20home%20financing%20instrumentsin%20Malaysia_Scopus.pdf
first_indexed	2023-09-18T21:42:36Z
last_indexed	2023-09-18T21:42:36Z
_version_	1777413239825498112

A comparative analysis of financial affordability in Islamic home financing instruments in Malaysia

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