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    Question ID: 7911Country: Canada

    Title: In Canada, when we buy a house, bank pays for us and then we pay monthly mortgage to the bank. Out of this mortgage amount, most part(about 700 out of 1000) is going to bank as interest and only a small amount is going to our payment and that way we are struggling whole life to get rid of this big amount. Alhamdolillah Im still away from this Riba problem but a lot of Muslims are involved in mortgages and im also pressed by friends to get a house(i live on rental), so my questions today are 1...Is this kind of mortgage is allowed assuming that there is no option other than living on rent! 2...People are doing business also like they buy a house and sell after some time with profit while paying riba to the bank as mortgage, is this property business is halal while involving in riba mortgage! 3...Most important, is paying sood is equally condemned and haram sin as getting(eating) sood! 4...After getting pressed by my friends to get mortgage, when I say its haram, they say Islam is not that narrow as you have made and Allah(SWT)forgives this kind of sins because they are necessary for life, what is your opinion!

    Question: Assalamo Alykum In Canada, when we buy a house, bank pays for us and then we pay monthly mortgage to the bank. Out of this mortgage amount, most part(about 700 out of 1000) is going to bank as interest and only a small amount is going to our payment and that way we are struggling whole life to get rid of this big amount. Alhamdolillah Im still away from this Riba problem but a lot of Muslims are involved in mortgages and im also pressed by friends to get a house(i live on rental), so my questions today are 1...Is this kind of mortgage is allowed assuming that there is no option other than living on rent! 2...People are doing business also like they buy a house and sell after some time with profit while paying riba to the bank as mortgage, is this property business is halal while involving in riba mortgage! 3...Most important, is paying sood is equally condemned and haram sin as getting(eating) sood! 4...After getting pressed by my friends to get mortgage, when I say its haram, they say Islam is not that narrow as you have made and Allah(SWT)forgives this kind of sins because they are necessary for life, what is your opinion! Jazak Allah!

    Answer ID: 7911Posted on: Aug 31, 2020

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 1754/1440=D/1429)

     

    (1) If the bank itself purchases a house, includes the benefits (whether in the name of interest and its rate) and then sells it to you on condition of paying the total price on instalments, and you pay the monthly instalment, then it is lawful as per the Shariah. If you face difficulty living in a rented room, then you can purchase a house form a bank as per the above mentioned way, it is allowable. Thus, you will not be avoiding the sin of giving or taking the interest.

    (2) In this way, one can also purchase a house and then sell it; this business is permissible for him.

    (3) In the abovementioned dealing, there is no interest, it is the bank which sells you the house while taking the benefits, it is allowed to take and give benefits on commodities and property.

    Yes, if the bank does not buy a house according to the abovementioned way, rather it gives you money to buy it, then whatever the additional amount out of the loan will be paid will surely be called interest which is haram to take and give. Thus, it will be unlawful to buy a house and then sell it to other while giving interest.

    (4) Using interest amount in any way is like eating it.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India