Acceptance Of Islamic Equity-Based Mortgage Product: An Extension Of Decomposed Theory Of Planned Behaviour

This study examines the determinants that may predict consumers’ intentions to accept equity-based products, namely mushÄ rakah mutanÄ qisah (MM), an Islamic mortgage. A survey was conducted using multi-stage and purposive sampling. For the purpose of the analysis in the current research, a structural equation modelling technique was used. Moreover, 306 responses were gathered from MM Islamic mortgage users. The theoretical framework of the current study draws upon the decomposed theory of planned behaviour (DTPB) because of its predictive power and robustness on which to base a model. The findings of the study revealed that behavioural intentions appeared to have been directly and indirectly influenced by all constructs and, above all, the most significant factors are peers and perceived behaviour control. All the main beliefs, namely, attitude, subjective norm, perceived behaviour control (predicted by compatibility), relative advantage, peers and self-efficacy affect consumers’ intentions to accept MM home financing. The effect of pricing variables on intentions was also significant. The pricing variable is yet to be tested; therefore, this paper will be a useful reference for policymakers, academicians, and future researchers.