I’m confused here and I need some light on this matter. I have a question regarding mortgage, whether it’s halal or haram. I believe there is interest involved and interest is haram. Is taking mortgage excused because it’s sort of a necessity?
Thanks.
Re: Mortgage
Islamically, it is Haram...if you go by fatwa, some allow it...but, fatwa can be had whatever your and my whims desire...you just have to find the right mufti who will do it for whatever reason and/or whatever incentive.
same thing for the car loans/financing and other loans.
it's strange that if a lot of people do justify such anti-Islamic practices, there is always some muftis who will find a 'leeway/loophole' for the people and people thing they have been absolved because all the sin [if there is any] will be on that mufti. sad but true!
for the ease in life and to avoid hardships, Muslims now a days tend to fit Islam in their life-styles rather than fit ourselves in Islam.
Allah says in Qur'aan that Muslims should enter into the folds of Islam COMPLETELY and not HOVER over the grey areas.
Re: Mortgage
thanks for the reply kkf bhai. Also an interesting mention of financing? is it the same stuff as getting stuff on instalments with APR?
In my family we avoid all this stuff, better buy it by paying full amount rather then paying kist. I need to have a deep look into this stuff.
Completely agree with the last two lines.
In islam, if you are buying anything on instalments, then it's totally ok for the seller to ask for the higher price, meaning that the total of all your monthly payments would be greater than the amount of your one lump sum payment. Aft long as buyer and seller are agreeing to the terms and conditions, the monthly instalment purchase is halal.
Mortgage
I think since you are paying interests as per a condition on business transaction it should be ok. Ofcourse I'm no mufti but u aren't taking interest to make money rather just subject to pay as per the loan you took from bank. Again my advice to you is to consult a proper aalim you trust in order to be satisfied
Re: Mortgage
You will find differing views on this. The banking system we have at the moment is interest based, does that mean Muslims should avoid banking altogether? Due to these issues Muslims have been left far behind. Without loan one can't buy property or start a business, does that mean Muslims should keep on renting And working in businesses set up by others? Some food for thought. The Islamic banking options will also have to evolve from the system in place at the moment.
Re: Mortgage
Depends on the contract, if against mortgage a loan is given then it is not allowed to take excess, but if the mortgage is done through some Islamic finance mode then it is halal(though still in present case not ideal).
in Islamic finance the bank purchases the land and then rent it to you (selling portion of the asset to the customer on regular intervals through separate sale/purchase). Risk of property in this case remains on the pro rata basis to both owners.
This is good read to understand the basics.
Re: Mortgage
In islam, if you are buying anything on instalments, then it's totally ok for the seller to ask for the higher price, meaning that the total of all your monthly payments would be greater than the amount of your one lump sum payment. Aft long as buyer and seller are agreeing to the terms and conditions, the monthly instalment purchase is halal.
AsSalaamo Alaikum TLK bhai,
But how will the conscience be at rest when you look at the monthly statement, and it gives a break down of the payment. x Amount towards principle, and x Amount for interest. Unless the seller knows the subject, and agrees to mask riba in the transaction in the form of justifiable profit that he/she/the organization is asking for because they're taking on a risk. I'm just asking.
Mortgage, or any loan for that matter is a, what is the word, tricky subject because there are different points of view present on it. Those that are for it, rightly so. And those that are against it, again also rightly so.
What felt closer to my heart was what one scholar said in answer to a question about taking Mortgage to buy a house out of necessity. Which is why we all seek it because why not pay the same amount to own something instead?
This is what the Aalim had to say on it in response, and I'll paraphrase: "Necessity means when there are no other choices; almost last resort. Quran allows for consuming of what has been made haram only if it becomes absolutely necessary and turns into a life or death situation. But we are commanded not to transgress in our necessity of the moment, and consume only enough to ensure survival. But how can buying a house become a necessity when renting is an available option in most parts of the world (The question was specific to U.S.)? Isn't a muslim's goal to treat life as a test, and live as a wayfarer as Prophet Muhammad (s.a.w.) commanded, and strive for Jannah instead which is an eternal abode? So would you justify risking indulging in Riba although another less desireable option is available, or would you rather take the difficult path out of fear of Allah and the command in Quran that says Allah and His Messenger (pbuh) declare war on the one who indulges in Riba, the one who becomes a witness to the transaction, and the one who writes the contract of riba".
Allahu Alim. As SID_NY said earlier, it is best to consult a trusted scholar around where you live because you will get advise that is suited to your locality, and circumstances there.
Re: Mortgage
Thanks for the responses guys. I'm not really convinced that's it's halal probably due to the lack of references or something. And when someone can't afford to pay back it keeps pilling up so I think that's not really halal. Please do correct me if I say something wrong.
I'll stay away from all this interest/APR and loans, big purchases can wait
Re: Mortgage
^ May Allah (SWT) reward you Ethan Hunt …
That sounds like an ending line in a Mission Impossible film … 