The Nature of contract is a co-ownership. The transaction is not based on lending & borrowing of money but on the joint ownership of an asset. In Islamic Housing Finance, bank takes risk in property up to the extent of it’s ownership share. Incase musharakah property is collapsed, rental payment is stopped, as due to non-availability of asset, rent cannot be charged. No fixed penalty on early termination.  Bank’s profit on early purchase of musharakah share is subject to the appreciation of the musharakah property value.