Updated: Jul 1, 2023
We are introducing our mortgage vs. rental comparison tool! Before making any decisions about signing up for a mortgage, it's crucial to assess your options carefully. With our tool, you can easily compare the financial implications of mortgage property income versus rental expenses. By modifying variables such as mortgage amount, interest rate, basement income, and expenses in the input fields, you can observe how these factors impact your overall savings. One important consideration is that the larger the mortgage amount, the higher the mortgage interest, which can result in a longer repayment period. However, many houses are constructed with legal basements or side units that can serve as additional sources of income for homeowners. Our calculator enables you to evaluate whether a home with a basement would be feasible based on your specific data. It's worth noting that embracing interest, also known as riba, is prohibited in Islam. We understand that navigating the complexities of interest and debt can be challenging for Muslims, with no truly Halal mortgage option available. Therefore, our tool aims to assist you in visualizing potential savings objectively, helping you make an informed decision. Dealing with interest and debt is a challenging task. As a Muslim, it's important to prioritize meeting financial obligations before death. Improper debt handling can have long-term implications for estate planning goals, even after one's passing. Therefore, it's crucial to approach mortgage decisions carefully and understand the potential consequences. Our comparison tool objectively assesses the financial aspects involved, allowing you to make the right decision. By visualizing your potential savings, you can better understand options' long-term impact, whether staying in renting or buying your own property. Responsible financial planning is essential to ensure a secure future for yourself and your loved ones, especially when dealing with interest and debt.
Observe the change in "Savings" by modifying Mortgage amount, interest rate, Basement income, and expenses in the input field to learn more about how does impact your selection. The bigger the mortgage amount, the bigger the mortgage interest, which would take a long time to pay off. However, many houses are built with a legal basement or side unit, which may serve as an income generator while owning a house. Our calculator will help you evaluate, based on your data, whether a house with a basement could be a feasible choice or not. If the calculated value under "Savings" is positive, you save; if negative, you lose money. Larger mortgage amounts and higher interest rates may give you negative results due to losing money even though you have basement rental income.
DISCLAIMER: We strive to offer users accurate information to the best of our knowledge. However, laws are subject to change; therefore, the user assumes full responsibility and should utilize the information on our website and this tool as a reference per our terms and conditions. If you believe any part of the calculation is incorrect or contains errors, we kindly request your feedback here.