What is an Islamic mortgage and how is it different from a conventional one?

An Islamic, Sharia-compliant home finance avoids interest (riba). Instead of lending at interest the bank uses structures like Ijara (it buys the property and leases it to you, transferring ownership at the end) or Murabaha (it buys and resells at a fixed, marked-up profit), and you pay rent or profit instalments. Costs are broadly comparable — the difference is the structure.