Servus Credit Union and working group announce Halal Mortgage for Albertans
6-25-2025
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Edmonton, Alberta | June 6, 2025
In a historic move for financial inclusivity, Servus Credit Union has announced the development of Alberta’s first halal mortgage product through its new wholly owned subsidiary, Servus Halal. The product, officially called the Servus Halal Mortgage, is currently in a testing phase and is expected to become available to the public in fall 2025.
This initiative is made possible following recent amendments to Alberta’s financial legislation, which now allow provincially regulated financial institutions to offer alternative financing models beyond conventional interest-based mortgages. This shift paves the way for products that align with the principles of Islamic finance, which prohibits the payment or receipt of interest.
A Faith-Aligned Alternative
Unlike traditional Canadian mortgages, the Servus Halal Mortgage will be structured as a cost-plus-profit agreement—also known in Islamic finance as a Murabaha. Under this model, the lender purchases the property and resells it to the buyer at an agreed-upon profit margin. The buyer then repays the total amount over a fixed 25-year term in equal monthly installments. This structure is designed to be both predictable and ethically compliant for Muslim consumers.
"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," said Ian Burns, President and CEO of Servus Credit Union. “We’re proud to provide products that reflect the diversity of Alberta’s population while empowering our members with inclusive financial solutions.”
A Collaborative Effort
The launch of Servus Halal was made possible through a collaboration between Servus Credit Union and key institutional partners:
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Alberta Treasury Board and Finance, which introduced the enabling legislation.
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The Canadian Islamic Finance Board (CIFB), led by Al Rashid Mosque, which is providing Islamic finance certification, employee training, and Shariah audits.
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The Credit Union Deposit Guarantee Corporation (CUDGC), the provincial credit union regulator, which provided compliance and risk management oversight.
“This work marks a historic milestone for Islamic finance in Alberta,” said Dr. Muammar Sawan, Chair of CIFB. “For the first time, Muslim Albertans can access home financing from a regulated institution that respects their faith and values. We are proud to help enable this shift toward inclusive, faith-aligned financial solutions.”
Provincial Leadership and Legislative Reform
The Servus Halal Mortgage is a direct result of legislative changes that make Alberta the first jurisdiction in Canada to allow alternative financing structures within its credit union system.
“Access to alternative finance mortgages promotes inclusivity and fairness,” said Nate Horner, Alberta’s President of the Treasury Board and Minister of Finance. “I am proud that we introduced legislation that made this possible.”
During the testing phase, which runs from June through August 2025, CIFB will review Servus Halal’s internal processes to ensure they align with the ethical and operational standards of Islamic finance. Upon successful audit and approval, the product will become publicly available in Alberta this fall.
What to Expect
Key features of the Servus Halal Mortgage include:
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A 25-year fixed repayment plan based on a Murabaha agreement.
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No interest charges—only the original cost of the home plus a fixed profit margin.
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Equal monthly payments to ensure financial stability and transparency for the buyer.
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Available to any Albertan who meets Servus Halal’s income and down payment criteria.
Servus Halal is currently Alberta’s only provincially regulated halal mortgage offering, marking a significant development in Canada’s evolving financial landscape.
About the Stakeholders
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Servus Credit Union, now merged with connectFirst Credit Union, is one of Alberta’s largest financial institutions, operating 147 branches across 80 communities.
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Servus Halal is a wholly owned subsidiary dedicated to delivering Islamic-compliant home financing.
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Canadian Islamic Finance Board (CIFB) is a nonprofit organization led by Canadian Islamic scholars, founded by Al Rashid Mosque, and committed to providing ethical financial solutions for Muslim communities.
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Alberta Treasury Board and Finance oversees policy for Alberta’s financial sector and played a key role in enabling this product through legislative change.
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Credit Union Deposit Guarantee Corporation (CUDGC) ensures regulatory compliance and deposit protection across Alberta’s credit unions.
For updates and more information, visit ServusHalal.ca.
Footnotes: https://www.globenewswire.com/news-release/2025/06/06/3095109/0/en/Servus-Credit-Union-and-working-group-announce-Halal-Mortgage-for-Albertans.html
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