Making the choice: how do, reward and information shape Islamic mortgage decisions among millennial consumers?

Purpose This study aims to investigate the influence of risk perception, financial benefits and information quality on Islamic mortgage decisions among millennial consumers. It also examines the mediating role of information quality as a mediator for both risk perception and financial benefits on Islamic mortgage decision, offering a perspective beyond religiosity. Design/methodology/approach Data were collected from 202 millennial customers of a major bank in Indonesia offering Islamic mortgage and analyzed using partial least squares structural equation modeling. Findings This study reveals that only financial benefits and information quality that directly influence Islamic mortgage decisions, while risk perception does not have direct impact. The “Islamic” label in Islamic mortgage products reduces consumers’ uncertainty regarding perceived risk, making risk perception does not become a significant antecedent in driving mortgage decision. The authors also find that the indirect effect of information quality only applies to financial benefits because consumers more optimally use quality information to evaluate potential financial advantages rather than the risks associated with Islamic mortgages. Overall, financial benefits emerge as the primary determinant of mortgage decision, directly and indirectly. Practical implications Islamic bank managers and stakeholders may strengthen competitiveness by improving financial benefit offerings and ensuring high-quality information to gain positioning advantages over conventional banks. They need to project a public perception that Islamic mortgages are not just a means of religious obedience, but also a financially beneficial proposition. Originality/value This research sample comprised actual Islamic mortgage users, not just potential adopters or those with an intention, and incorporates information quality, which had been overlooked in previous studies.