Saturday | 27 November 2021 | 22 Rabiul-Thani 1443
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Fatwa Answer

Question ID: 1200 Category: Dealings and Transactions
Buying house

Assalam u alaikum , I am writing this question about buying a house . I am living in Canada and originally belongs to Pakistan . In Pakistan I was living in my fathers house . In Canada I am living in rent house and was Looking to buy house . As interest is involved while going in mortgages , but there is also no other way in Canada that one can own a house in start without going on mortgage . Can you please advise in this regard whether I can buy house on mortgage or it will put me in interest paying situation . Jzk 

بسم اللہ الرحمن الرحیم
الجواب ومنہ الصواب

The method of buying a house through interest-bearing loans in Western countries is “haraam” because of its interest.

However, to make the deal permissible, the following two conditions must be agreed:

1. The matter is settled with the homeowner in such a way that the entire price of the house is set higher than the market price which is then paid in agreed installments.

2. The lender agrees that price of the house will hold firm, whether a payment is paid in advance of its due date or a payment is delayed.  

If the lender is a bank or any other financial institution, it is important that it first buys the house for itself, takes possession and then sells it to you on credit.

When determining the value of this loan, the lender should fix the price by adding as much more as it deems appropriate from the market price. But at the time of closing the deal, it is important to decide what the total cost will be and how many installments will be paid and in case of delay in payment, no surcharge will be charged.

واللہ اعلم بالصواب