1. You are recently appointed as a credit officer with a universal banking system that offers Islamic and conventional products. One of your potential clients is applying for a home mortgage or financing facility. The price of the unit is 650,000. Based on his initial credit scoring report, he is eligible for 90% margin financing. He was interested to know the value proposition of the Islamic home financing. The prevailing interest rate for conventional loan and the profit rate for the Islamic financing are at 4.25% per annum respectively. The maximum tenure of the facility is 35 years.

By using appropriate diagram(s), critically illustrate TWO Islamic home financing structures for your client (Hint: You must clearly indicate the flow of funds between parties, the underlying asset, the contract used, the transfer of ownership at the end of the contract, and the monthly instalment, among others).