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Article
FACTORS INFLUENCING THE ADOPTION OF ISLAMIC HOME FINANCING IN MALAYSIA
Nur Fadhli Bassir, Zarina Zakaria, Haslida Abu Hasan, Ervina Alfan
ABSTRACT. This study considers factors influencing the adoption Islamic home financing in Malaysia. By exploring the costumers' perceptions towards Islamic home financing as the selection criteria, this study identifies a demographic profile of the Islamic home financing customers and their adoption profile. Several independent variables namely religiosity, price or cost, brand or reputation and level of awareness have been used in exploring their effects on adoption. From 143 responses, the findings indicate that Islamic home financing adoption is determined by high religiosity combined with brand/reputation of the financial institutions, cost of financing and high level of knowledge and awareness among Muslims. Of these, religiosity and cost of financing appear to be the strongest determinant for adoption of Islamic home financing in Malaysia..
KEYWORDS: Islamic banking, developing countries, Malaysia.
JEL classification: M14, M19, P2.