Search all the listings in this section
Browse by Category:|
What is the Islamic mortgage? What is the difference between it and the regular loan from banks?
Praise be to Allaah.
The ruling of Riba does not change. It is the same in the land of Islam and the land of Kufr. This is the opinion of the majority of Muslim scholars including Imam Malik, Shafie, Ahmad, Ishaq, Awza'e, as well as Abu Yusuf, and Muhammed from the Hanafi School.
Their evidence for this is the texts of Quran and Hadith that forbid Riba without distinction between the land of war (Kufr) and the land of Islam, or the distinction the dealing of a Muslim with another Muslim or with a non-Muslim.
There are two procedures in buying a house through the bank:
1) The bank really buys the house or the car, and once it is in its possession sells it back to the customer by instalments with a higher price. This method is permissible. This is known by buying and selling with a benefit [the original price of purchase is made known to the buyer], and Islamic banks deal with it.
2) The bank does not really buy the house or the car, but it just pays the money on your behalf in return of repaying (the bank) a higher price than what it actually paid. This method is forbidden because it is usury. In reality it is a loan with interest and this is the practice in banks that deal with usury and interest. So it is not permissible for a Muslim to enter this transaction because usury and interest are forbidden and have bad consequences in this life and in the Hereafter.
Allaah knows best.
Question Date: 2010-04-11
* The views posted are the opinions of the individual author of each posting, and are solely meant for education, discussion, and debate, not for any illegal purpose. The authors are not responsible or liable for the intentional, reckless, or negligent actions of any individual, and we assumes no responsibility for the content of the authors. Thus, the articles and materials posted do not represent, endorse or express the views of Muslims of Calgary or any of its affiliate organizations.
* A Spacious House and Happiness (2012-01-07)* Adoption & Last Name (2010-05-04)* Animals and Prayers (2011-06-19)* Any Rewards in this World (2013-01-03)* Ayahs of Quran & Names of Allaah in the Newspaper (2011-11-22)* Between Lotto and Shares (2012-12-06)* Bought a Car & Financed by Bank (2012-11-27)* Bowing the Head in Karate Class (2012-05-20)* Boys Circumcision is Act of Fitrah (2012-03-20)* Buying & Selling Shares / Mutual Funds (2012-03-22)* Cannot Find a Job, Forgiveness and Dua'a (2012-08-08)* Caring for My Relatives and Family Friends (2012-01-24)* Cat Spaying (2010-02-08)* Cats as Pets (2011-05-30)* Changing Name After Becoming a Muslim (2010-02-02)* Clarification on Ijara Loan (2013-02-08)* Cleanliness and Washing Private Parts (Istinja) in Public Places (2012-05-03)* Commemorating the Deceased (2012-08-17)* Committed Adultery and Lost Virginity (2012-10-06)* Committing Suicide to Escape a Stalker Threat (2012-10-04)* Companionship at School (2010-10-08)* Confession of Past Sins to Spouse (2012-05-20)* Constant Whispers That I Divorced My Wife (2012-06-16)* Cow for Akikah / Aqeeqah (2010-11-01)* Cow for ‘Aqeeqah (2012-09-22)* Credt Cards Cash Back Awards (2012-08-22)* Cutting Nail and Hair While Planning to Sacrifice Udhiyah (2012-10-23)* Date of Death in Dream (2011-03-28)* Dealer Covering Interest of Financed Purchased Car (2012-04-13)* Deeply Concerned About a Friend, Help Please (2012-11-09)* Depression and Many Calamities (2011-07-28)* Description of Wiping Over the Head in Wudoo’ (2011-04-10)* Did the Dinosaurs and Huge Animals Exist? (2012-10-31)* Differences Among the Scholars (2010-08-12)* Divorced and Dreaming of Dead Relatives (2013-01-16)* Donating Bone Marrow (2011-07-21)* Donating Received Interest (2012-11-13)* Dreaming of a Cow or Dog Running After Me (2012-02-16)* Dua'a & Prayers of the Sick (2010-08-30)* Dua'a to Stop Pain & Sickness (2012-08-07)* Dua`a (Supplications) for All Circumstances (2011-06-17)* Dua’a for Well-Being or Protection (2013-01-03)* Eid: Etiquette and Rulings (2011-11-03)* Exam Tips for Students (2011-11-13)* Fasting in a Dream (2012-08-29)* Fear of Darkness & Concentration Issue (2012-01-02)* Fed Up of Life (2012-01-27)* Feeling Depressed & Unwanted (2010-08-19)* Female Participation in Sports (2012-11-28)* Flying on Airlines that Serve Alcohol (2012-08-14)* Friendship Between Youth Boys & Girls (2011-08-31)* Gelatin in Medication (2011-06-13)* Giving Money to a Sick Relative Without Our Parents Knowledge (2011-09-09)* Gold / Diamond Ring for Men (2010-12-27)* Guide Dogs (2012-07-26)* Halal Mortgage & Ijara Loan (2013-01-25)* Hanging Pictures on Wall (2010-08-21)* Hopelessness and Depression (2010-10-19)* House Financing through Ansar Housing (2012-09-12)* How to be Successful in Life? (2011-05-03)* Hymen Repair Surgery (2012-10-16)* Ijara Loan (www.ijaracanada.com) (2012-11-22)* Immunity and Protection Against Black Magic (2013-04-18)* Interpretation of Visions and Dreams (2010-03-01)* Investing in Mutual Funds (2011-07-02)* Is al-Masjid al-Aqsa Considered to be a Sanctuary? (2011-06-25)* Is Feet Considered Awrah? (2010-12-07)* Is Sacrifice / Qurbani Obligatory? (2012-10-20)* Islamic Healing (2011-03-09)* Istikhaarah / Istikhara (2010-04-29)* Joining Canadian Army (2010-11-06)* Joula Practice of Tableeghi Jama’at (2012-04-29)* Kalima Reciting (2011-07-04)* Khatam & Gathering for the Deceased (2012-09-10)* Life Support - Resuscitation Equipment (2010-05-23)* Little Gold in a Ring for Man (2012-12-23)* Major Sins and Judging Others (2012-02-01)* Making Donation via Credit Cards (2012-11-02)* Man Living Alone (2012-01-07)* Marrying Daughters or Performing Hajj (2011-09-10)* Mortgage from Ijara Loans (2013-03-24)* Muhammed (PBUH) Gift to His Daughter When She Got Married (2011-03-30)* My Work and the Mix of Ice Cream with Gelatin (2012-07-30)* Naming a Baby Boy Siyam (2011-09-13)* Naming a Child (2010-02-04)* Our Attitude Towards Yazeed ibn Mu’aawiyah (2011-05-25)* Perfume with Alcohol (2011-01-21)* Photography (2010-10-10)* Possessed Jinni Speaks on Her Lips (2011-05-03)* Prayers for the Sick (2010-07-16)* Prize of Raffle Draw (2010-06-14)* Protect Oneself Against the Evil Eye (2012-01-30)* Refund of Life Insurance Policy & Bonus (2011-10-25)* Rent-to-Own House (2012-07-15)* Ruling on Buying & Keeping Stuffed Animals (2011-03-08)* Ruling on Celebrating Valentine’s Day (2011-02-13)* Ruling on Facial Piercings (2012-12-13)* Ruling on Jury Duty (2011-11-07)* Ruling on Keeping Pets (2013-03-18)* Ruling on Khulwah (being alone with a member of the opposite sex) (2010-10-27)* Ruling on Piercing Women’s Ears (2011-04-09)* Ruling on Using Kohl, Henna and Cosmetics While Fasting (2011-08-05)* Ruling on Wine Vinegar (2012-07-12)* Rulings on Kafaarat Yameen (2011-04-08)* Satan & Sin While Repenting (2011-12-21)* Seeing Names of Allah & Muhammad (2011-05-03)* Serving Pork Products (2011-03-02)* Shaving Beard for Job Requirement (2012-12-03)* Shaving Head of a Newborn Girl (2013-01-02)* Smoking & Marijuana (2011-11-07)* Smoking & Patches During Ramadan (2010-08-12)* Source of Income (2010-10-29)* Student Loan (2010-02-20)* Suffering From Laughing Too Much (2011-06-17)* Suing Insurance Company (2010-10-19)* Surgery to Lift Breasts After Losing Weight (2011-08-16)* Swearing by Allah's Name (2012-03-12)* Swearing by the Quran, Kafaarat Yameen (2011-08-30)* Taking Car Loan on Fixed Interest Rate (2011-04-13)* Teaching Children About Removing Body Hair (2011-11-28)* Teenage Emotions (2011-11-07)* The Minimum Length of Time for I’tikaaf (2011-08-15)* The Ninth and Tenth of Muharram (2011-12-05)* The Proper Way of Celebrating the New Hijri Year (2012-11-14)* There is a Jinni in My House? (2010-08-18)* Thoughts and Imaginations in the Hereafter (2012-05-21)* To Whom Shall I Give Interest Money (2013-01-30)* Two Adopted Children Living Together (2011-06-11)* Vacationing in a Beach Resort & Cruise Trips (2012-04-16)* Video / Electronic Games (2010-07-27)* Visiting Graves of Rightous People - Karamat and Shirk (2012-10-15)* Want to Payback Debt But She is Dead (2012-08-28)* Waswaas About Tahaarah (State of Purity) (2011-12-28)* Wearing Hijab When Traveling (2012-10-04)* What Constitutes Intercourse? (2011-05-22)* When to Pray if Menstruation Period Last Long (2012-03-27)* Whey Powder in Food (2012-09-09)* Why Muslim Men Can! (2011-07-13)* Widow Observing ‘Iddah Traveling to Another Country (2011-04-23)* Will Distribution After the Death of Husband & First Wife (2012-04-30)* Women Swimming (2010-07-05)* Working as a Registered Nurse (2013-06-03)* Working for Telus, Shaw, etc Telecom Co. (2011-04-08)* Working Where They Deal With Liquor (2012-03-27)* Worldly Education at Religious Education (2010-10-27)* Wudu and Nail Polish (2012-09-12)* Zina Before Marriage (2011-08-19)