Kia mortgage per ghar laiyna jayes hai ya nahee?
Re: Question regarding Mortgage???????
jee yehi maloum kerna chah rahee hoon k yahan in countries mein hum loug mortgage k baghair ghar layina afford nahee ker saktay tou islamic point say ye jayes hai ya nahee?
Re: Question regarding Mortgage???????
dealing in interest in any form is not allowed in Islam....
Re: Question regarding Mortgage???????
jee yehi maloum kerna chah rahee hoon k yahan in countries mein hum loug mortgage k baghair ghar layina afford nahee ker saktay tou islamic point say ye jayes hai ya nahee?
Peace EEMAAN
Iss zamane mein har cheez jaiz banai jai saktee hai, bas ek mufti ko dhundlo jo aap ki baat samaj sakta hai ... lekin ...
bro armughal is right
Advice for a Muslim: Tarry in this world as though you are a traveller ... Rent takes your money but mortgage owns you until you pay off the property. These days we truly cannot buy straight out, but we are getting to a point where mortgage itself is totally binding.
If you have a mortgage say interest is about 5.5% per annum and the payback duration is about 20 years, then:
1.055^20 = 2.92
This means that you will pay back your original house worth and two times on top of the value of the house. Say it is worth £200,000 today, then in 20 years with a similar mortgage rate as above then you will end up giving £584,000 back. Not only is interest bad ... but giving that much money is just silly.
Re: Question regarding Mortgage???
:salam: Bro
Even if you got a mortgage from an Islamic bank you would end paying just as much. Trust me I’ve done it.
Its not really the rate of interest or profit that makes it interest but other factors. It depends on your situation. Like me I have a big family Mashallah! 3 kiddos, wife and my parents as well. I cannot live in an apartment anymore. Renting a house of the size I need is more expensive. I have studied the Islamic schemes available to me here in USA and I have not been convinced as of yet that they do what they claim to do.
I absolutely agree when you say the mortgage owns you till you pay it off.
The theory of Islamic banking is pretty sound but the practice is not:
Sister, for information on it, I suggest reading Mufti Taqi Usmani’s book on Islamic finance:
http://www.darululoomkhi.edu.pk/fiqh/islamicfinance/islamicfinance.html
Mufti Usmani sits on the Shariah board of Guidance Financial here in USA however I have not been able to reconciliate their practice with the model they claim to follow.
Re: Question regarding Mortgage???????
lol psyah brother i dont want to consult any mufti just wanna right guidance according to islam..
Thanks US brother but this site doesn't open.
Re: Question regarding Mortgage???
Wa’alaikumSalam
Yes the interest amount is not the issue, but with Islamic finance there are too many problems as well I agree. Such as for example they ask for a very large deposit … How is anyone other than a rich family likely to get a large deposit? They also estimate the value in the future and do not sell according to the current price.
Lending money in Islam is supposed to be a charitble activity not an exploitative exercise. But I agree with you about what you said.
Re: Question regarding Mortgage???
please check this site: http://www.qurtuba.ca/eng/home.html
Re: Question regarding Mortgage???????
In today's economy, no one considers 5.5% exploitive by any means. If you want to own a house, you pay interest. Or you are very rich. How could there be enough charitable people/organizations to loan money with no interest? That would be an undue burden on those people (if they existed).
Renting is a far more exploitive practice. After years and years of paying and living in the same house you will end up with nothing. The whole time praying for repairs, upkeep and a fair landlord. When you purchase you get equity and you are in charge of your life and finances.
Re: Question regarding Mortgage???????
There are couple of Islamic Financing options available.
1. Guidance (already mentioned by USResident)
2. Lariba.com (their method is slightly different from Guidance)
Re: Question regarding Mortgage???????
Is it something that Faith preaches, but cannot be implemented in real life? Is interest-free even do-able?
If I loan you $1000, and you return it after 2 years, should we account for inflation part (Currency losing or gaining value)?
Don't hate me for asking questions.
Re: Question regarding Mortgage???????
Is it something that Faith preaches, but cannot be implemented in real life? Is interest-free even do-able?
If I loan you $1000, and you return it after 2 years, should we account for inflation part (Currency losing or gaining value)?
Don't hate me for asking questions.
Absolutely and that is not interest. Interest is when two things of par value are traded for more. For instance, if you came to me to break your $100 dollar bill into $1 bills and I kept $1 for doing that, it is Riba. The 100 $1 bills and 1 $100 bill have the same instrinsic value. If the $1000 you loaned me is equivalent to $999 after 2 years then that is what I should return you.
Re: Question regarding Mortgage???????
In today's economy, no one considers 5.5% exploitive by any means. If you want to own a house, you pay interest. Or you are very rich. How could there be enough charitable people/organizations to loan money with no interest? That would be an undue burden on those people (if they existed).
Renting is a far more exploitive practice. After years and years of paying and living in the same house you will end up with nothing. The whole time praying for repairs, upkeep and a fair landlord. When you purchase you get equity and you are in charge of your life and finances.
Semi, you have no idea what it is we are talking about. Its not solely about exploitive but there are a lot more factors than just exploitation. There are different rules in Islam for profit and loss sharing in trade and sales.
Re: Question regarding Mortgage???????
"Riba has seventy-three doors. The least one (in sin) is as that of a man who sleeps with his mother. And worst form of Riba is harming the honor of a Muslim man." (Al-Hakim, who graded it Sahih)
Money Lending in Islam is purely for a charitable basis. I disagree with the arguments about inflation being of any real worth.
People need to understand riba to understand why it is prohibited. Financial gains can only be undertaken in trade but not as interest. The difference between trade and interest is:
1) The value added on the item due to trade is intrinsic to the value of the item in the eye of the beholder/wanting purchaser, whereas the interest is added on due to external factors outside the benefit function of the item on sale.
2) The contract understood at point of trade is absolute and binding where both seller and purchaser know what they are giving and what they are getting. However, this is not the case with interest.
These reasons help us understand why exchanging small volume of good quality dates directly with a large volume of bad quality dates is classed as riba ... it is because the standard has been taken out of the equation. The standard in this sense is the monetary value.
Absolute contracts and Standards are necessary in halal transactions ... furthermore these definitions help us understand why the hadith says that;
incest with mother and harming the honor of a Muslim brother are considered riba.
These are relationships that should not exist. A relationship is a contract be it physical or otherwise ... the aspect of every contract is a trust and a trust is considered sacred - refer to the last sermon.
Standards, absolute legal contracts, trust and sacred duties should all be considered when trying to avoid riba.
The stuff that is now there to trap the Muslim into finance is amazing.
Robert - The loan given at the time of lending is the agreed amount to be paid back regardless of external factors.
Re: Question regarding Mortgage???????
If you ask people you would end up confused. Do what your own heart tells you. My logic to get a traditional mortgage from a USA bank is this. Quran prohibits the money lenders to accept riba/interest. Quran has condemned the money lenders to accept riba/interest which is interest. Quran has encouraged people with money to engage in the practice of buying and selling.
Nowhere in Quran people who are forced to pay interest by money lenders have been condemned . That tells me that Quran understand that there will be situations where people will be forced to pay interest by people who have money . The people with money have been given a better alternative of using their money for trading purposes instead they use it for earning interest . They choose not to use their money for trading. The builders who build house do not engage in the practice of selling the house at easy installment. These builders insist that you get money from a money lender to pay the builder in this situation the people have no option other than borrowing money on interest to fulfill their basic need of having a shelter for their family .
Now people will prove to you from hadees that paying interest is also haram.
But the basic principle I follow is that the thing which is not proved haram from Quran then it is not haram.
Quran has questioned Rasool Alllah ( SAW) in surah Tahreem for making something haram for himself which Allah did not make haram for him, Then how can Allah give His Rasool ( SAW) the authority of making things haram for masses which Allah Himself did not make haram for them.
This is the translation of text of the Surah Tahrim: 66 verse 1.
The actual words used are taharam meaning "you make it haram" and ahala meaning "made halal"]يَـٰٓأَيُّہَا ٱلنَّبِىُّ لِمَ تُحَرِّمُ مَآ أَحَلَّ ٱللَّهُ لَكَۖ تَبۡتَغِى مَرۡضَاتَ أَزۡوَٲجِكَۚ وَٱللَّهُ غَفُورٌ۬ رَّحِيمٌ۬
066.001 *
**YUSUFALI:* O Prophet! Why holdest thou to be forbidden that which Allah has made lawful to thee? Thou seekest to please thy consorts. But Allah is Oft-Forgiving, Most Merciful.
PICKTHAL: O Prophet! Why bannest thou that which Allah hath made lawful for thee, seeking to please thy wives? And Allah is Forgiving, Merciful.
SHAKIR: O Prophet! why do you forbid (yourself) that which Allah has made lawful for you; you seek to please your wives; and Allah is Forgiving, Merciful.
*066.001 *
Re: Question regarding Mortgage???????
The Islamic mortgage is just a sugar coated form of your regular mortgage...
Re: Question regarding Mortgage???????
Semi, you have no idea what it is we are talking about. Its not solely about exploitive but there are a lot more factors than just exploitation. There are different rules in Islam for profit and loss sharing in trade and sales.
I was specifically addressing the post that said "Lending money in Islam is supposed to be a charitble activity not an exploitative exercise". That is from what I understand is taught in the Quran. Immoral and exploitive lending practices are forbiden. Please convince anyone that buying a house with a 25 year mortgage is immoral or exploitive. To me renting your home for 25 years without antying to show for is exlpoitive and immoral.
But it seems you think losing $1 is immoral and exploitive. You have a different interpretation. I wouldn't too cocky when saying who "has no idea of whatit is we are talking about".
Re: Question regarding Mortgage???????
Absolutely and that is not interest. Interest is when two things of par value are traded for more. For instance, if you came to me to break your $100 dollar bill into $1 bills and I kept $1 for doing that, it is Riba. The 100 $1 bills and 1 $100 bill have the same instrinsic value. If the $1000 you loaned me is equivalent to $999 after 2 years then that is what I should return you.
and if that $1000 were spent on a business, should I get a share in the profit? Is Loaning = investing?
Re: Question regarding Mortgage???????
I was specifically addressing the post that said "Lending money in Islam is supposed to be a charitble activity not an exploitative exercise". That is from what I understand is taught in the Quran. Immoral and exploitive lending practices are forbiden. Please convince anyone that buying a house with a 25 year mortgage is immoral or exploitive. To me renting your home for 25 years without antying to show for is exlpoitive and immoral.
But it seems you think losing $1 is immoral and exploitive. You have a different interpretation. I wouldn't too cocky when saying who "has no idea of whatit is we are talking about".
Peace Seminole
You need to ask me this question for it was I who asserted that idea in the first place. So I will answer it, inshaAllah to the best of my ability.
Rent is based on a continuous basis a person knows that they have the money stream available to pay the required asking price for the tenancy. The agreement is made based on an actual value that the tenant agrees to based on the value he/she holds on the property in question. Also there is no assurance that 25 years will be spent it could be less it could be more, people will rent according to their capability and/or they could die without any debt on their hands.
On the other side however, if a person binds himself to a mortgage that is so highly priced that it becomes riskier to pay it off, but then is only offered to pay even more money out of his cash flow only so to insure the chance that he may die and thus the property will belong to his kin. However, inheritance tax will cripple them anyway.
The truth is when we die we do not take our property with us, nor is grandeur and righteousness defined by how many properties we have. If I was to count 25 years from now for me if I live till then inshaAllah, in good faith I will have lived through most of my life for what purpose did I bind myself? I could have paid less for rent and lived through a better lifestyle which was my right. USResdient threw the real curve ball when he said that rent in his area is the same as the mortgage, but in most places that is not the case. And I still believe there are hidden extra costs that do not exist in rent situations too.
And generally if you want the Islamic stance on patience then it is to rent, but if you are asking about the Islamic stance on the solution that is a different question.
The link by cricketplaya I thought was going to be promising, but it is again about profit. The solution is indeed to create a community cooperation group, that has the money and finances to buy land and build flats 'in one go' that are sold based on interest free loan basis to tenants. Here is the breakdown:
Coop property is rented at higher rates than similar flat in private market. However, the percentage extra being paid goes towards a buy portion of the value of the property.
Typical rent of 2 bed appartment = say $800
Coop rent will be something like = say $1000 where $300 dollars goes towards buying portions of the property every month. i.e. true rent is lower than going rate.
When family want to leave they will get the cash value of the amount they have bought. They will have to vacate to allow other people to step on to the property market but they walk away with a handsome deposit for a good Islamic mortgage in the private sector.
The Coop will not alter or raise their rents unless by inflation and perceived value, but will attempt to make their rents lower than the private sector.