Buying a House On Mortgage

Opinion, July 2003, www.aljazeerah.info

Adil Salahi

Arab News

Q. Could you please tell me whether buying a house on mortgage is permissible, considering that this is the only way I can buy a house for my family’s living.

A. Shikak • USA

A. The European Council for Islamic Rulings, presided by Sheikh Yusuf Al-Qaradawi, a leading authority, has recently published a ruling that it is permissible for Muslims living in Western countries to use the facility provided by banks and building societies to buy a house on mortgage. The two provisos the council makes are that the house is for one’s family’s living and that there is no comparable way for buying a house that meets Islamic requirements. The council bases its ruling on the fact that owning a house is a necessity for living, and the alternative of renting a house does not provide a satisfactory solution.

There is no doubt that the council’s ruling is right, and it answers a felt need of Muslims not only in the West but also in many other parts of the world. However, I feel that an added reason for considering the mortgage facility permissible to use is that the borrower gets more than the amount of the loan, which he pays back in a higher amount. He gets the full ownership of the house he buys, although, apart from the mortgage loan, he puts in the price of only a share of it. He also uses the house for the duration of the loan. Both these are quantifiable benefits, which are always greater than the increase in the amount he pays back on his loan.

Earth, a planet hungry for peace

The Israeli apartheid (security) wall around Palestinian population centers (Ran Cohen, pmc, 5/24/03).

The Israeli apartheid (security) wall around Palestinian population centers in the West Bank (Ran Cohen, pmc, 5/24/03).