Wednesday | 24 April 2024 | 15 Shawaal 1445

Fatwa Answer

Question ID: 1670 Category: Dealings and Transactions
Buying second house for investment with mortgage from Devon Bank Islamic Financing!

Assalamoalikum Warrakhmatullah!

My name is Waseem and i am resident of Fremont CA.

I already have a house with mortgage from Devon Bank Islamic Financing and this house is ALHAMDOLILLAH enough for my residential needs.

I have some savings and in order to invest it i was looking forward to buy another property on mortagage from Devon Bank Islamic Financing.

My question is that is it permissible if i mortgage another house for investment when the existing one is already enough for my residential needs. The reason i am asking this question is that if there is any hujjat in mortgage because of the other ribah based banking systems in the world i would like to avoid.

Jazak Allah Khairun.

Waseem  

بسم اللہ الرحمن الرحیم

الجواب و باللہ التوفیق

Devon Bank is certified by the Shariah Board of America. Its method is Islamic, which is “Murabahah with al-Taqseet". So you can buy a house again from this bank in the present case. 

Since these schemes are indirectly established, therefore, unless absolutely necessary, it is better to avoid them.

فقط واللہ اعلم واتم