THE CONSTRUCTION OF A NEW MATHEMATICAL MODEL FOR ISLAMIC HOME FINANCING

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Published: Mar 20, 2019
DOI: https://doi.org/10.21315/%20aamj2019.24.s1.3
Keywords:
mortgage takaful, total permanent disability, Islamic home financing, integration model, Barakah model home financing

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Puspa Liza Ghazali
Faculty of Economic and Management Science, Universiti Sultan Zainal Abidin, 23100 Kuala Nerus, Terengganu, Malaysia
Sharifah Arni Syed Jaaffar
Faculty of Economic and Management Science, Universiti Sultan Zainal Abidin, 23100 Kuala Nerus, Terengganu, Malaysia
Nik Hazimi Mohammed Foziah
Faculty of Economic and Management Science, Universiti Sultan Zainal Abidin, 23100 Kuala Nerus, Terengganu
Abdul Malek A Tambi
Faculty of Economic and Management Science, Universiti Sultan Zainal Abidin, 23100 Kuala Nerus, Terengganu
Farah Amalina Md Nawi
Faculty of Economic and Management Science, Universiti Sultan Zainal Abidin, 23100 Kuala Nerus, Terengganu, Malaysia
Mustafa Mamat
Faculty of Informatics and Computing, Universiti Sultan Zainal Abidin, 22200 Besut, Terengganu, Malaysia
Saiful Bahri Mohammad
Faculty of Informatics and Computing, Universiti Sultan Zainal Abidin, 22200 Besut, Terengganu, Malaysia
Wan Mohd Nazri Wan Daud
Faculty of Economic and Management Science, Universiti Sultan Zainal Abidin, 23100 Kuala Nerus, Terengganu, Malaysia
Mohd Sadad Mahmud
Faculty of Economic and Management Science, Universiti Sultan Zainal Abidin, 23100 Kuala Nerus, Terengganu, Malaysia

Abstract

Islamic financial institutions apply few mathematical formulas in constructing Islamic home financing models. However, the available products in the markets are deemed to be a burden to the low to medium income earners, while the mortgage takaful only compensates selected cases such as death and total permanent disability without including the protection against those who loss an effort to work. Hence, this study derives a new formula of Islamic home financing where the profit is calculated based on one-third of the total amount of financing, while the new model of mortgage takaful will compensate those who are losing effort to work. Therefore, this study aims to derive a new formula of home financing and mortgage takaful model by using an integrated model.

Article Details

How to Cite
Puspa Liza Ghazali, Sharifah Arni Syed Jaaffar, Nik Hazimi Mohammed Foziah, Abdul Malek A Tambi, Farah Amalina Md Nawi, Mustafa Mamat, Saiful Bahri Mohammad, Wan Mohd Nazri Wan Daud, & Mohd Sadad Mahmud. (2019). THE CONSTRUCTION OF A NEW MATHEMATICAL MODEL FOR ISLAMIC HOME FINANCING. Asian Academy of Management Journal, 24(Supp. 1), 33–41. https://doi.org/10.21315/ aamj2019.24.s1.3
Issue
Vol. 24 No. Supp. 1 (2019)
Section
Original Articles
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This work is licensed under a Creative Commons Attribution 4.0 International License.

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