Taking interest (riba) from banks (Answered)

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Shana
Posts: 128
Joined: Sun Jul 12, 2020 12:50 pm

Question:​ Is a mortgage with interest (even low interest like 1%) permissible If it is not possible to purchase a house with cash? Or must a believer keep renting and hope that one day they can buy in cash (even housing market keeps going up and making that seem less real)?

Answer: Mortgage is not permissible and it is Haram (forbidden), and if you believed that Allah swt is the One who sustains and that He is the Compassionate and the Intensely Merciful, you would have not said that and you would have had two houses instead of one. I ask Allah to sustain you and make you well in your religion and in your world and in your hereafter, verily, He is the All-Hearing, All-Knowing. ​

– Ahmed Al-Hassan / Shawwal 1436

Every day is Ashura, and every land is Karbala
AdamSterling
Posts: 19
Joined: Mon Jul 20, 2020 1:46 am

Shana wrote:
Thu Jul 16, 2020 5:01 pm
Question:​ Is a mortgage with interest (even low interest like 1%) permissible If it is not possible to purchase a house with cash? Or must a believer keep renting and hope that one day they can buy in cash (even housing market keeps going up and making that seem less real)?

Answer: Mortgage is not permissible and it is Haram (forbidden), and if you believed that Allah swt is the One who sustains and that He is the Compassionate and the Intensely Merciful, you would have not said that and you would have had two houses instead of one. I ask Allah to sustain you and make you well in your religion and in your world and in your hereafter, verily, He is the All-Hearing, All-Knowing. ​

– Ahmed Al-Hassan / Shawwal 1436

Asalaamu alaikum. Does this also include financing through "islamic" mortgaging companies where they buy the house and you essentially lease the house until the debt is repaid?
Korddad
Posts: 30
Joined: Tue Jul 14, 2020 3:50 am

Assalammualaykum Wr Wb. Forgive for my ignorance, I wanted to know that is loan money from bank with interest to buy a house and buy a house throught mortgage(which also included interest) is the same thing?
AdamSterling
Posts: 19
Joined: Mon Jul 20, 2020 1:46 am

Korddad wrote:
Fri Nov 13, 2020 1:35 pm
Assalammualaykum Wr Wb. Forgive for my ignorance, I wanted to know that is loan money from bank with interest to buy a house and buy a house throught mortgage(which also included interest) is the same thing?
Walaikum assalam wa rahmatullahi wa barakatuhu,
The mortgage thru the bank carries interest.
The mortgage thru "islamic" finance is explained to me as the financing company purchased the house with you as a partner with "x" amount invested out of pocket. Then you as the partner buyout the remaining equity from the financer over years at a fixed payment each month until debt is repaid. Their is a "business fee" each month explained as cost of doing business. I wonder is the "business fee" really interest with another name.
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