Toronto-based Islamic fintech startup Manzil has surpassed $100 million CAD in total halal mortgage financings after doubling its mortgage business in less than a year, positioning the company as Canada’s leading provider of Sharia-compliant home financing solutions, according to an exclusive interview with BetaKit published in October 2025.
Filling a Critical Gap in Canadian Banking
The achievement demonstrates a significant advancement in meeting the financial needs of Canada’s Muslim population, which has grown to 1.8 million people, according to recent census statistics. Manzil CEO Mohamad Sawwaf stated that the achievement proves both the power of their mortgage product and the large market need from the community.
Since its 2020 launch, Manzil has issued halal mortgages to 240 Muslim-Canadian families. According to Sawwaf, the company has achieved more halal mortgage business than any other Canadian halal mortgage financier has accomplished to date.
$10 Billion Waitlist Reveals Massive Untapped Demand
“The goal of that is to create an additional product that we know our community needs and there’s demand for, and attract a different set of deposits that we can also augment and supplement our mortgage program.”
Strategic Vision Beyond Mortgages
The actual level of unmet demand becomes evident through Manzil’s impressive waitlist numbers. The company grows by $100 million each month without any marketing efforts.
The large number of applicants reveals a critical process, with $10 billion in mortgage applications following the introduction of halal mortgages in 2020, and a shortage of Sharia-compliant mortgage solutions within Canada’s conventional banking sector. The absence of halal mortgage options at the Big Six Canadian banks forces Muslim Canadians to obtain financing from smaller, specialized institutions.
Sharia-Compliant Structure
The startup offers halal mortgages through the Manzil Mortgage Fund, which is listed on the Cboe Canada exchange as a fixed-income fund. Manzil operates as an AAOIFI member to create financial products through murabaha (cost-plus sale) and musharaka (co-ownership partnership) structures that meet international Islamic finance standards and obtain IFAAS independent certification.
The financial structures at Manzil operate without interest payments because Sharia law prohibits them; instead, they utilize leasing and profit-sharing models to deliver homeownership benefits that align with Islamic principles.
Market Expansion and Growth Trajectory
The halal mortgage services of Manzil operate in British Columbia, Alberta, Ontario, and Quebec, and the company plans to introduce services to all remaining provinces during the next twelve months. The company provides its services to over 10,000 Canadian Muslims through its various product offerings.
Sawwaf estimated the Canadian halal mortgage market size at $250 billion, which indicates substantial market expansion possibilities. The $100 million achievement sets the stage for Manzil to reach $1 billion and higher, according to the CEO.
Government Recognition and Industry Impact
The 2024 federal budget included plans to study new ways for Canadians to access alternative financial products, such as halal mortgages, due to their growing popularity. The ever-increasing economic power of Canada’s Muslim population has led to official recognition of the need for financial solutions that include everyone.
The North American Islamic financing market reached $1.01 billion in 2024, with experts predicting an annual growth rate of 8.7% over the next decade. The company stands as a leading force in this fast-growing market segment because its success demonstrates that faith-based financial solutions are effective in Canada’s evolving banking industry.