Is interest on mortgage allowed in Islam?

[gazza619]

I have heard about two schools of thought. One which says you need to avoid interest no matter what and the other says that you can have a mortgage on a property if you are living in it.

What do you guys think? Which is right?

 

[Gayle_Force]

People can live on rent too so I don’t understand why mortgage interest will get any kind of leniency over other forms of interest. In fact, in Canada, many people have over leveraged themselves because of a period of very low mortgage rates and are now feeling the heat in a time of rising interest rates.

 

[Justcrazy]

I have heard about two schools of thought. One which says you need to avoid interest no matter what and the other says that you can have a mortgage on a property if you are living in it.

What do you guys think? Which is right?

Brother the question of which is right and wrong is wrong itself. That is because all the shariah laws can be implemented only when you have power , you have khilafat. Without which you cannot apply them.

When Muhammad SAW was praying in Mecca , where there no idols there ? There were . He could not do anything about that. This shows that even when prophet is present , unless he has administrative power he cannot implement certain things.

Those scholars and Muslims who say Mortgage is wrong , ask them have they devised any alternative way ? I can point out to several things that is going on wrong against shariah , but what can be done ? Individually we all Muslims but we living under secular laws , this is kufr in itself.

 

[Musakhel]

Brother the question of which is right and wrong is wrong itself. That is because all the shariah laws can be implemented only when you have power , you have khilafat. Without which you cannot apply them.

When Muhammad SAW was praying in Mecca , where there no idols there ? There were . He could not do anything about that. This shows that even when prophet is present , unless he has administrative power he cannot implement certain things.

Those scholars and Muslims who say Mortgage is wrong , ask them have they devised any alternative way ? I can point out to several things that is going on wrong against shariah , but what can be done ? Individually we all Muslims but we living under secular laws , this is kufr in itself.

Dar ul Islam is not only defined on the basis of the implementation of the sharia, otherwise except for the first few decades of muslim rule there was all types of justice systems which went against the shariah in some ways.

Dar ul Islam is any land controlled by muslims, so 50 odd muslim countries today are all Dar ul Islam.

As for alternatives to mortgages, how about rent?

 

[Tusker]

I have heard about two schools of thought. One which says you need to avoid interest no matter what and the other says that you can have a mortgage on a property if you are living in it.

What do you guys think? Which is right?

Do you know of any bank/Mortgage lender in the world that wont charge interest on Mortgage ?

 

[UP]

An interest free world will come crashing down. The world economy will collapse. There’s no way you can escape interest on anything you borrow.

 

[Madplayer]

An interest free world will come crashing down. The world economy will collapse. There’s no way you can escape interest on anything you borrow.

No it wont come crashing down.
Risk sharing is a better alternative, safer in the long run and more ethical obviously.
Currently, the collective debt in the world exceeds the total amount of money present in the world. This means that the world will always be in debt no matter how hard we try. This shouldnt have been possible under normal circumstances but thanks to interest system it has happened.

 

[Kroll]

I'd say it is haraam, no matter how much you spin it or sugar coat it. Interest is interest no matter what you call it or the circumstances in which it used. Let's see what other members have to say.

 

[Justcrazy]

Dar ul Islam is not only defined on the basis of the implementation of the sharia, otherwise except for the first few decades of muslim rule there was all types of justice systems which went against the shariah in some ways.

Dar ul Islam is any land controlled by muslims, so 50 odd muslim countries today are all Dar ul Islam.

As for alternatives to mortgages, how about rent?

Which country is Darul Islam ?

How can rent be a alternative to owning a house ?

 

[gazza619]

An interest free world will come crashing down. The world economy will collapse. There’s no way you can escape interest on anything you borrow.

Thats true. The question is how do muslims avoid it. I guess I could have been renting instead of getting a mortgage but then I would have been worse off by not having a property

 

[Kroll]

Getting a house without a mortgage can be done. I have a couple of friends who own their own homes but have bought homes outright. They saved for years after graduating and getting good jobs. But of course, this is not the norm.

I have also heard of people selling up and begin to rent as soon as they realized it was haraam to be in a property with interest on it.

 

[Musakhel]

Which country is Darul Islam ?

How can rent be a alternative to owning a house ?

Pakistan, Bangladesh, egypt, Indonesia etc etc

If Allah has not blessed you with the means to outright purchase a home it is better to rent than get involved in usury.

 

[Tusker]

Thats true. The question is how do muslims avoid it. I guess I could have been renting instead of getting a mortgage but then I would have been worse off by not having a property

how do you know the rent that you have been paying is not going towards interest by the landlord ? I will give another example : Pakistan as a nation borrows money from other countries, IMF on which it pays interest from money collected by taxing its citizens so anybody who is paying taxes in Pakistan is essentially indulging in un-Islamic activities. At-least the govt is.

 

[Musakhel]

how do you know the rent that you have been paying is not going towards interest by the landlord ? I will give another example : Pakistan as a nation borrows money from other countries, IMF on which it pays interest from money collected by taxing its citizens so anybody who is paying taxes in Pakistan is essentially indulging in un-Islamic activities. At-least the govt is.

Your agreement with the landlord is for rent, it is not your problem what he than does with that money.

 

[Kroll]

how do you know the rent that you have been paying is not going towards interest by the landlord ?

It would be fine as long as you're not the one paying interest.

 

[Kroll]

Your agreement with the landlord is for rent, it is not your problem what he than does with that money.

Yep, as this could apply to any situation where money is exchanged for a commodity.

 

[Tusker]

Your agreement with the landlord is for rent, it is not your problem what he than does with that money.

It would be fine as long as you're not the one paying interest.

but you are aiding and abbetting unlawful activities. Also what is your take on Pakistan paying interest on IMF and other loans ?

 

[Kroll]

but you are aiding and abbetting unlawful activities. Also what is your take on Pakistan paying interest on IMF and other loans ?

You're not cos as the other poster says, your agreement is only with the letting agent or the landlord and this doesn't include interest. Don't have a take on the IMF/Pakistan thing.

 

[UP]

Is ‘profit’ another word for interest?

 

[Tusker]

You're not cos as the other poster says, your agreement is only with the letting agent or the landlord and this doesn't include interest. Don't have a take on the IMF/Pakistan thing.

Would you still rent or do business with any person/company/bank that you know will use your money to pay towards interest which is a bad thing ?

And by accepting IMF loans that require interest payments Pakistani govt is indulging in un-islamic activities. Heck as a official govt banking policy Pakistan should ban their banks from collecting interest.

 

[Musakhel]

Would you still rent or do business with any person/company/bank that you know will use your money to pay towards interest which is a bad thing ?

And by accepting IMF loans that require interest payments Pakistani govt is indulging in un-islamic activities. Heck as a official govt banking policy Pakistan should ban their banks from collecting interest.

Morally I would not, but practically once I have paid my rent I can not control what that person than does with that money, since legally it is no longer mine but theirs, they are ultimately responsible for it.

Yes and I condemn the Pakistani government for doing so, riba is a serious Crime.

 

[Justcrazy]

Pakistan, Bangladesh, egypt, Indonesia etc etc

If Allah has not blessed you with the means to outright purchase a home it is better to rent than get involved in usury.

Those countries are Muslim dominated countries , not Islamic Countries.

 

[shaz619]

Interest is allowed you can't avoid it when you need to put a deposit towards a house and am sure many school's of thought have provided a ruling on this. Moreover, there are some Islamic banks who charge you even higher rates lol bunch of dossers

 

[shaz619]

Rent is a waste of money, I am currently renting but am throwing money away essentially. It is better to be in a position where you are putting those sums towards a monthly mortgage. It is beyond ignorant isn't it to see how this would be an unforgiveable sin, if folk are constantly taking loans out or re-mortgaging their home etc and putting their family at risk that's a different story but if your goal is quite the opposite and still not acceptable that is just stupid, anyhow many folk in the faith have different views on this but largely you are allowed to be a home owner. Don't listen to the extremists.

 

[Musakhel]

Those countries are Muslim dominated countries , not Islamic Countries.

This also fits into the definition of Dar ul Islam.

 

[Musakhel]

Rent is a waste of money, I am currently renting but am throwing money away essentially. It is better to be in a position where you are putting those sums towards a monthly mortgage. It is beyond ignorant isn't it to see how this would be an unforgiveable sin, if folk are constantly taking loans out or re-mortgaging their home etc and putting their family at risk that's a different story but if your goal is quite the opposite and still not acceptable that is just stupid, anyhow many folk in the faith have different views on this but largely you are allowed to be a home owner. Don't listen to the extremists.

You can't make halal what Allah has made haram.

 

[Musakhel]

Is ‘profit’ another word for interest?

Those who devour ‘Riba’ interest (usury) will not stand (on the Day of Resurrection) except like the standing of a person beaten by ‘Shaitan’ Satan leading him to insanity. That is because they say: “Trading is only like ‘Riba’,” where as Allah has permitted trading and forbidden ‘Riba’. So who-so-ever receives an admonition from his Lord and stops eating Riba, shall not be punished for the past; his case is for Allah (to judge); but whoever returns (to Riba), such are the dwellers of the Fire—– they will abide forever therein.

 

[Halaribo]

Interest is allowed you can't avoid it when you need to put a deposit towards a house and am sure many school's of thought have provided a ruling on this. Moreover, there are some Islamic banks who charge you even higher rates lol bunch of dossers

The only endorsers of Islamic banks and "halal" mortgages that I ever find are the well off and maulvis that are sponging off the local mosque, and would never qualify for a £10 loan let alone one for £200k plus.

I'm saying that as someone who rents and is looking to get a "halal" mortgage when I blatantly know it's just haram haribo in halal haribo packaging.

 

[shaz619]

You can't make halal what Allah has made haram.

Thing is that's your opinion and interpretation on what is permissible. But while you're at it may as well live under a cave.

 

[shaz619]

The only endorsers of Islamic banks and "halal" mortgages that I ever find are the well off and maulvis that are sponging off the local mosque, and would never qualify for a £10 loan let alone one for £200k plus.

I'm saying that as someone who rents and is looking to get a "halal" mortgage when I blatantly know it's just haram haribo in halal haribo packaging.

You should try and find the best rate possible, Islamic banks will rip you off in order to give you 'peace of mind'. But you should ask yourself what your intentions are before you're doing something, it's just common sense; you got a family to take care off and want to ensure their security so instead of wasting money paying rent the long term / sensible plan is to take out a mortgage. You're not going to kill someone mate, there are plenty of holy folk who do such worse and don't practice what they preach; the prayers don't seem to benefit them either.

 

[Justcrazy]

This also fits into the definition of Dar ul Islam.

It does not fit .

 

[Musakhel]

It does not fit .

Regardless of the definition are you saying that Mortgage is allowed just because there is no Khilafa state?