EXPLAINING THE EFFECTS OF SHARIAH COMPLIANCE, FINANCIAL FREEDOM AND RELIGIOSITY ON ISLAMIC HOME FINANCING ACCEPTANCE IN KOTA KINABALU, SABAH

Abstract

At present, home finance exists because the most important in someone's life is to have shelter meanwhile the house is the place to dwell in comfort with their family. Someone can have their own home by buying a house whether using cash or monthly installment. As for Islamic finance institutions, they have introduced the Shariah-compliant to have their own house the same goes to a conventional loan. However, a conventional loan may serve the interest that prohibited in Islam where there are known as Riba. Home financing gives impact to people where home financing takes a large chunk from their income. This study intends to examine the impacts of Shariah compliance, financial freedom, and religiosity on Islamic home financing acceptance. A total of 150 respondents are collected to meet the research objective. Likewise, SPSS software is used to analyze the research findings. The results obtained suggest that Shariah compliance, financial freedom, and religiosity are instrumental in determining Islamic home financing acceptance. Limitations and future research are provided.