Factors affecting consumer's willingness to choose Islamic mortgage product / Nursyafeza Razali

Islamic mortgage or Islamic home financing is defined as a type of financing that is secured by real property and provides a schedule of payments of profit rate. For example, the profit rate charged by Islamic banks and the repayment of the principal to a bank. Islamic mortgage providers practice profit rate and the rate remain stable and will not fluctuate, even during inflation. However, buyers normally go to bank for a financing facility for home mortgage whether Islamic or Conventional. Thus, conventional home mortgage is interest based and forbidden in Islam. Accordingly, Islamic financial institutions have introduced number of Shariah compliant modes for home financing which is the al Bay Bithaman Ajil (BBA) and the Musharakah Mutanaqisah Partnership (MMP) contracts. The consumer preference for Islamic home financing plays a crucial role for Islamic banks due to ability to predict consumer demand on Islamic home financing products. The objective of this paper is to examine factors affecting consumer's willingness to choose Islamic mortgage product. It is specifically studies on Maybank, Tapah. In this research, it is empirically to examine the factors which including the demographic profile, affect, social factors, perceived risks, perceived financial benefit and facilitating conditions that influence consumer's willingness to choose Islamic mortgage product. The data is collect using the primary sources which is by distribute 120 set of questionnaires through Google form to consumer in Maybank, Tapah. The result will then be code and run using the Statistical package for Social Science (SPSS) version 22.