Buying a house with mortgage
Question: Is paying mortgage interest to buy a house considered riba (usury)? What should we do if we did not know this for many years, and it is difficult for us to move now?
Summary:
As Muslims, we are obligated to avoid what Allah has clearly forbidden and seek permissible (halal) alternatives. Even if interest-based mortgages are common in society today, that does not change their ruling in Islam. We must fear Allah, trust in His provision, and make sincere efforts to live within the boundaries He has set. Choosing halal over haram, even when difficult, is a sign of true faith and reliance upon Allah. May Allah guide us all to what is lawful and bless us with homes obtained through halal means.
Answer:
In the name of Allah, all praise is due to Allah, and may Peace and Blessings be upon the Messenger of Allah (ﷺ).
Buying a house through a mortgage involves riba (interest), and riba is categorically haram in Islam, rather it is from the major sins.
From the Qur'an:
- Surah Al-Baqarah, Ayah 275
"But Allah has permitted trade and forbidden interest."
From the Sunnah:
- Musnad Ahmad 3799Abdullah ibn Mas'ud reported: The Prophet (ﷺ) said:
“Allah has cursed the one who consumes usury, its client, its witness, and its recorder. Usury and adultery do not become widespread among a people except that they become vulnerable to the punishment of Allah Almighty.”
Therefore, there is no doubt that taking a mortgage with interest is haram and considered a major sin in Islam. It is well known between the muslims that Riba(usury) is haram. In the case of a convert who wasn't aware of this rule, then Allah will forgive but they should try to pay it off fast. But if a person was tricked by the name of mortgage and didn't know then they should repent.
From the Qur'an:
- Surah nur Ayah 31
Turn to Allah in repentance all together, O believers, so that you may be successful
And Allah knows best.
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