Specific aspects and comparative analysis of traditional and islamic mortgage

Аннотация

Islamic economy and finance, which entered the economy and finance system of the world countries as a new direction and a unique method, became a big turning point in the world finance system. The specific aspects of Islamic financial instruments and the increase in regular profitability indicators have attracted the attention of economists. Nowadays, the introduction of elements of Islamic economy and finance into the economy is on the agenda of many countries. Establishing investment activities in our country, diversifying banking services and products taking into account the needs of the population and business entities will have a positive effect on other sectors of the economy. Mortgages are long-term loans with constant nominal payments, interest and amortization. A fixed-rate mortgage has a fixed nominal interest rate and constant nominal payments for the entire term of the loan; A variable rate mortgage, on the other hand, sets nominal payments over periods so that the loan is expected to be paid off in full over the remaining term, given the current short-term nominal interest rate. Belgium, Denmark, Germany, France and the United States are countries where the mortgage market has traditionally been dominated by fixed-rate mortgages with fixed interest rates for at least 10 years .