Fatwa No : 82842
Taking an Interest-Based Loan from a Bank to Purchase a House

Taking an Interest-Based Loan from a Bank to Purchase a House

Banks offer loans, commonly referred to as mortgages, for individuals who do not have enough money to purchase a house. These loans are repaid in installments with high interest rates. Is it permissible for a Muslim to avail this facility? If it is not permissible, then what is the solution for a person who does not have the money to purchase a personal residential home?

الجوابُ حامِدا ًو مُصلیِّا ً

Dealing in interest-based loans with any bank is strictly impermissible and prohibited (ḥaram) in Shari‘ah, and must be avoided. However, it is Islamically permissible and valid to obtain an interest-free loan by pledging something as collateral (rahn/mortgage) and repaying it in installments.

مأخَذُ الفَتوی

ففي الدر المختار: و في الأشباه كل قرض جر نفعا حرام فكره للمرتهن سكنى المرهونة بإذن الراهن. (5/ 166)۔
و في حاشية ابن عابدين:(قوله كل قرض جر نفعا حرام)أي إذا كان مشروطا كما علم مما نقله عن البحر (5/ 166)۔
و في الفقه الإسلامي وأدلته: قال الحنفية في الراجح عندهم: كل قرض جر نفعاً حرام إذا كان مشروطاً، فإن لم يكن النفع مشروطاً أو متعارفاً عليه في القرض، فلا بأس به، (5/ 444)۔