Is there a Halal mortgage?

In order to allow Muslims avoiding interest to own homes, the concept of the Shared Equity Rental (SER) has been developed. The SER is an alternative to the conventional mortgage first worked out in Halifax, Canada in 1975. The structure of the SER is based on an idea similar to partnership. A number of investors pool funds in order to buy a home. One investor acts as the tenant-buyer. He lives in the house and pays rent to the other investors in the deal, who own shares of the property. This rent is based on the market value of the house, as determined through outside assessment. As the value of the house rises, the worth of a share goes up accordingly. The tenant-buyer can purchase shares from the other investors in order to secure ownership of the home. There is a degree of flexibility in the arrangement. Since the first SER deal, other organizations have used modified versions of the arrangement in North America and in Australia.