Mortgage Loan for House
  • Question:

    My question is regarding the permissibility of mortgages. Is it allowed to take a mortgage to own a home? From my research I've found that it is not, but other people have referred me to links of other Islamic leaders who are allowing it.
    What am I to follow?

    Assalamu Alaikum wa rahmatullahi wa Barakatuh

    Thank you for your question.

    The Holy Quran is very explicit on the fact that usery or interest based loans (mortgages) are prohibited. This ruling applies to Muslims, regardless, whether such loan is taken for purchasing a house, car or any other commodity.

    You have pointed out that your research also concludes the same.

    Please refer to the verses below:

    "Those who devour usury will not stand except as stands one whom the Satan by his touch has driven to madness. That is because they say, "trade is like usury", but Allah has permitted trade and has forbidden usury. Allah will deprive usury of all blessing, and will give increase for deeds of charity, for he does not love any ungrateful sinner. (Holy Quran 2:275, 276)

    "Oh you who believe! Fear Allah and give up what remains of your demand for usury if you are indeed believers. If you do not, take notice of war from Allah and his Messenger (pbuh) but if you repent you shall have your capital sum. Deal not unjustly and you shall not be dealt with unjustly." (Holy Quran 2:278, 279)

    "Oh you who believe! Devour not usury doubled and multiplied; but fear Allah that you may prosper." (Holy Quran 3:130)
    "That they took usury though they were forbidden and they devoured peoples wealth wrongfully; we have prepared for those amongst them who reject faith a grievous chastisement." (Holy Quran 4:161)

    "That which you give in usury for increase through the property of people will have no increase with Allah: but that which you give for charity seeking the countenance of Allah, it is these who will get a recompense multiplied." (Holy Quran 30:39)
    Jabir (ra) reported that the "Messenger of Allah (pbuh) cursed the devourer of usury, its payer, its scribe and its two witnesses. He also said that they were equal (in sin)" (Muslim)

    Abu Hurairah (ra) reported that the Messenger of Allah (pbuh) said, "I came across some people in the night in which I was taken to the heavens. Their stomachs were like houses wherein there were serpents, which could be seen from the front of their stomachs. I asked: O Gabriel! Who are these people? He replied these are those who devoured usury." (Musnad Ahmed, Ibn Majah)

    Umar bin Al-Khattab (ra) reported, "The last of what was revealed was the verse of usury . . . so, give up usury!" (Ibn Majah, Darimi)

    Abdullah bin Hanzalah (ra) reported that the Messenger of Allah (pbuh) said, "A dirham of usury that a man devours and he knows is greater than 36 fornications." (Musnad Ahmed, Darqutni)

    The other leaders or organizations you are referring to, that have allowed interest based loans are in clear contradiction to the dictates of the Holy Quran and Noble Sunnah.

    The only situation where something can become permissible that is clearly forbidden by the Holy Quran is in the situation of life and death. This is why the Holy Quran tells us that pork becomes permissible in a scenario where one has nothing else to eat for survival. This permissibility of a general Quranic prohibition is limited to the dire situation of life and death, as mentioned in the verses of the Holy Quran.

    "He has forbidden you only the Maitah (dead animals), and blood, and the flesh of swine, and that which is slaughtered as a sacrifice for others than Allah (or has been slaughtered for idols, on which Allah's Name has not been mentioned while slaughtering). But if one is forced by necessity without wilful disobedience nor transgressing due limits, then there is no sin on him. Truly, Allah is Oft-Forgiving, Most Merciful" (Holy Quran 2:173)

    My advice to you is to contact a reliable Islamic financial institution that has reputable Islamic scholars as a shariah advisory board, for your loan to purchase a house.

    And Allah knows best.

    Answered by Shaykh Yusuf Badat
    Hadith of the Day Imam
    Imam of the Islamic Foundation of Toronto and Director of Mathabah institute
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