From Mortgagebrokernews.ca: Shariah-compliant mortgages and other types of Islamic financing would be legal in Canada, but the CMHC has no plans to insure them or change any legislation or administrative practices to accommodate them, concluded a report.

“Islamic financial products should not present any particular difficulties under Canadian accounting standards,” said a study conducted by the CMHC that noted the growing demand for these types of loans……………………………….Full Article: Source