Posts

Are House Mortgages Permissible?

Answered by Ustadh Tabraze Azam Question: Assalam alaykum Are house mortgages permissible? Answer: Wa alaikum assalam wa rahmatullah, Generally, mortgages from conventional, usurious banks are going to be impermissible as they stipulate the kind of increase in a loan contract which was expressly prohibited in the Qur’an. Allah Most High says, “O believers! Fear Allah, […]

What Is the Difference Between a Mortgage and a Rent-To-Own?

Answered by Shaykh Abdul-Rahim Reasat Question: Assalamu alaykum In a mortgage, the bank buys a house in my name and I pay the bank the principal plus interest for using their money. On the other hand, in rent to own, the bank buys the property in their name and I pay them rent which includes […]

Debt: How It Destroys Lives, How You Can Fight It

The good folks at Rizqwise have a very worthy multi-part series on debt that you should really listen to. If you haven’t got the time, this concluding episode is not to be missed. Rizqwise speak to Rehan Huda, a prominent investment banker and leading authority in Islamic Finance, about some of the key lessons we […]

Is Zakat Due When My Mortgage is Greater Than My Assets?

Answered by Ustadh Tabraze Azam Question: When I calculated all my assets my liabilities are greater due to my house mortgage payment.  In this case, zakat is due on me? Answer: Assalamu alaikum wa rahmatullah, I hope you are in the best of health and spirits, insha’Allah. A house mortgage is considered a long-term debt. […]

Renting Out Property Purchased Through Mortgage, and Wearing Shirts Sponsored by Unlawful Companies

Answered by Shaykh Faraz A. Khan Question: (1) One of my family properties we have on rent is on mortgage. So is the rent from the mortgaged house classified as haram income? We do not consume interest money from the bank because we told the bank not to give us interest money. But i know […]

Do I Have to Move Out if My Parents Get a Home by Contemporary Mortgage?

Answered by Shaykh Faraz A. Khan Question: My parents recently bought a house on mortgage. I tried to advise them against it, but they won’t listen. Sheikhs I’ve asked have given me two main alternatives, (1) live with my parents and refuse to pay any of the mortgage payments, just paying the basic bills (my […]