The Tawakkul Mortgage Investment Corporation

What it is

A Shariah-compliant alternative to a conventional mortgage fund: income produced by financing Canadian homes through contracts in which the financier owns something and carries risk, rather than by lending money at interest. It is built for investors who want distributions sooner rather than at the end of a development cycle.

Why it exists

Because the Trust is a development-stage property fund and the asset manager does not anticipate distributions during the first one to five years. That is the right structure for growth and the wrong structure for someone replacing an income. Rather than pretend otherwise, the answer is a second vehicle designed for that purpose.

What makes it different from a conventional MIC

A conventional mortgage investment corporation earns interest on loans, which is riba on the dominant scholarly view. A compliant structure has to replace lending with ownership — through cost-plus sale, diminishing partnership or lease — so the return arises from an asset the financier owns and the risks it carries. The mechanics are explained in full here, including the two places where it is genuinely difficult.

The distinction that matters most

It is a separate corporation, not a series of Tawakkul REIT. It will have its own offering document, its own risks, its own certification and its own decision to make. Subscribing to the Trust today does not buy any part of it, and nothing about the Trust's structure or performance tells you anything about it.

Where it stands

It is not open. Nothing is being offered, no money is being taken, and no terms are published. When it opens it will be through a registered dealer with its own offering document, and the people who asked to be told will be told.

What to do if you want it

Ask us to note your interest. That is a note on a list and nothing more — no commitment, no allocation, no priority claimed. When there is an actual document to read you will get it, and you can decide then.