servus Credit Union has initiated testing for an option mortgage financing product.The Servus Halal Mortgage is slated for release to consumers in the fall of 2025 through its newly established, wholly owned subsidiary, Servus Halal.

conventional Canadian mortgages are structured around interest. Recent changes to Alberta legislation now permit provincially regulated financial institutions to provide diverse financing structures alongside conventional interest-based options. Servus Halal clients will have the option to finance home purchases via a cost-plus-profit agreement, aligning with Islamic finance principles that prohibit the payment of interest.

According to Ian Burns, Servus President and CEO, “Working together with key stakeholders to make halal mortgages widely accessible to consumers is an exciting demonstration of Servus’s innovation and leadership in the industry. One of the founding principles of the credit union system is to provide specialized products that meet the evolving needs of our diverse population while driving growth for members. We proudly continue this tradition today, making home ownership accessible to more Albertans through the Servus Halal Mortgage.”

Servus collaborated with key stakeholders including the Government of Alberta’s Treasury Board and finance ministry; the Canadian Islamic Finance Board (CIFB), an initiative led by Al Rashid Mosque; and the Credit Union Deposit Guarantee Corporation (CUDGC) to pave the way for alternative financing options, including halal mortgages. Each entity contributed specialized expertise to ensure legislative, regulatory, community, and industry perspectives were represented.

Nate Horner, President of Treasury Board and Minister of Finance, stated, “Access to alternative finance mortgages promotes inclusivity and fairness by providing Albertans with more options when buying their home.I am proud that we introduced legislation that made Alberta the first jurisdiction in Canada to enable provincially-regulated financial institutions to offer alternative finance mortgage products.”

CIFB has delivered specialized training in Islamic finance principles to servus Halal employees and will provide annual certification for Servus Halal’s products. During the testing phase, from June through August, CIFB will audit Servus Halal processes and documentation to ensure compliance with Islamic finance principles.

Islamic Finance principles

“This work marks a historic milestone for Islamic finance in alberta.”

Dr.Muammar Sawan, Chair, Canadian Islamic Finance Board, said: “This work marks a historic milestone for Islamic finance in Alberta. For the first time, Muslim albertans can access home financing from a regulated institution that respects their faith and values. At CIFB, our commitment is to uphold the highest standards of Islamic financial ethics while ensuring full openness and trust in every transaction. We are proud to be part of this transformative step toward inclusive, faith-aligned financial solutions.”

As the regulator of Servus, CUDGC provided subject matter expertise and regulatory guidance to the project, which was key to enabling alternative finance mortgages to be offered. CUDGC will continue to regulate and advise credit unions on their business practices as they develop innovative products and services for members. CUDGC oversight enables credit unions to remain financially sound.

Servus Halal products are available to anyone purchasing a home in Alberta and meeting the income and down payment requirements.

The Servus Halal Mortgage is a 25-year, cost-plus-profit home financing structure, meeting the requirements of a Murabaha agreement within Islamic finance principles.The consumer pays the cost of the home plus an agreed-upon profit amount for the financer. Payments remain consistent each month for the mortgage’s 25-year term, providing homeowners with predictability.

Updates will be posted to ServusHalal.ca. Servus Halal Mortgages are anticipated to be available to consumers in the fall of 2025, following the completion of the testing period.