Are conventional mortgages halal if there’s no alternative?

We get asked about Islamic mortgages a fair amount, but with recent market turmoil and high interest rates, Islamic banks have taken a step back. So what does a muslim looking to get on the property ladder do? Does the one-house fatwa by Sh Yusuf Al-Qaradawi permitting one mortgage out of necessity still apply? In this video, we share our view.
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TIMESTAMPS
00:00 - Sh Yusuf Al-Qaradawi's Famous Mortgage Fatwa
00:15 - IFG's historic view
00:31 - IFG U-Turn?
01:15 - Are conventional mortgages an option?
01:49 - Has the situation changed?
03:21 - Ibrahim's personal view
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#islamicmortgage #mortgage #shariacompliant #halal #islamicfinance #ifg #halalmortgage #yusufalqaradawi #fatwa

[@Jamalk96]

I agree with your personal view as well, I’m 26 and it’s incredibly tempting to go for a conventional mortgage but to justify it from a religious perspective is incredibly dangerous in my opinion. It makes sense I guess to play it safe for now. Maybe once this upcoming recession is over there might be future opportunities that rise up inshallah

[@IFGuru]

Appreciate you sharing

[@paidsurveys6561]

You can buy homes all cash with no riba you have to study creative real estate investing as far as riba it's never halal Allah swt said take notice of war those who do riba

[@mjilani4252]

It’s good to show different perspectives

[@user-mr6je9yg3w]

ɢʟᴀᴅ ʏᴏᴜ ʟᴏᴠᴇ ᴛʜᴇ ᴄᴏᴍᴍᴇɴᴛ., ʜᴇʟᴘʟɪɴᴇ ɪꜱ ꜱʜᴏᴡɴ ᴀʙᴏᴠᴇ ᴛᴇxᴛ ᴍᴀx ʜᴇ ᴡɪʟʟ ɪɴᴛʀᴏᴅᴜᴄᴇ ʏᴏᴜ ᴛᴏ ᴀ ʟɪꜰᴇ ᴄʜᴀɴɢɪɴɢ ʙᴜꜱɪɴᴇꜱꜱ ᴏᴘᴘᴏʀᴛᴜɴɪᴛʏ☝️••

[@lentilsouper]

Weak fatwa. Can't afford a house? Rent. Simple. My parents have been renting for over 30 years and I've been renting for around 8 myself. Imagine knowingly waging war against Allah and his messenger.

[@kas5857]

Just wondering how you deal with the fact renting feels like throwing money down the drain. Feels like the biggest hurdle working day in day out and knowing I have to rent

[@huzaifaahmed5870]

@@kas5857 Even in a conventional mortgage, you are paying over 80-90% interest for the first few Years of the mortgage term. It will take 15-25 years of your life to finally own a piece of land bought on the basis of one of the major sins of Islam. This simply perpetuates the scam financial system we live in - debt based economy

[@IFGuru]

This is also my personal view. Ultimately though, senior scholars have given some leniency and there are legitimate situations where conventional can be justified. Best of course to stay away unless absolutely necessary.

[@kas5857]

@@huzaifaahmed5870 totally agree with you here. Have you through of any halal alternatives for getting on the property ladder?

[@huzaifaahmed5870]

@@kas5857 Honestly it's a systemic issue so there's no easy way here. Fundamentally, I truly believe that all Muslims should free themselves from this "slave-mindset" of permanent debt. As the old adage goes, "Cash is King". If you can't afford it, don't buy it. In Canada, there was a scheme from developers where they offered 0% interest for the first 3 years of home purchase. So I know of a few people who bought the house, payed whatever they could within the first 3 years and then sold the house for a significant markup at the end of the 3 years. This could help you save up a chunk of cash towards eventually owning a home. Another idea is to invest in HALAL VC funds where the risk is greater but the potential rewards are extremely profitable. Your investment could literally 20x-30x if the company goes public or is sold in a few years.

[@qimtiaz]

I agree with your personal view and I think it is a no-brainer decision considering the gravity of riba. The bit that I hated in your video is from 3:57 to 4:00 where there is a flag out of many which represents an evil entity.

[@iramshah4398]

Ibrahim, Muslims can buy profit share schemes with the help of private investor funds as an alternative to banking finance, to purchase property (not their own residential), as well as look at the tenant buy market.

[@user-mr6je9yg3w]

ɢʟᴀᴅ ʏᴏᴜ ʟᴏᴠᴇ ᴛʜᴇ ᴄᴏᴍᴍᴇɴᴛ., ʜᴇʟᴘʟɪɴᴇ ɪꜱ ꜱʜᴏᴡɴ ᴀʙᴏᴠᴇ ᴛᴇxᴛ ᴍᴀx ʜᴇ ᴡɪʟʟ ɪɴᴛʀᴏᴅᴜᴄᴇ ʏᴏᴜ ᴛᴏ ᴀ ʟɪꜰᴇ ᴄʜᴀɴɢɪɴɢ ʙᴜꜱɪɴᴇꜱꜱ ᴏᴘᴘᴏʀᴛᴜɴɪᴛʏ☝️••

[@afzalshaikh2128]

Even people in Canada had the debacle with UM financial that went bankrupt and that lowered confidence in the community. There is no halal finance option that does not deal the bank as primary lender.

[@GhostAES]

In these times of uncertainty it is very difficult to choose an option and becomes easier to choose the conventional haraam mortgage, but at the end of the day it's still haraam. And companies like wayhomr in the UK do exist. Yes you will end up paying more over the long term but at the same time you will still be on the property ladder in a halal manner. Personally, I myself will be using wayhome to purchase a home until all the rates and uncertainty go away.

[@anwarabushaala8797]

Any options you can suggest for Scotland?

[@SohaibAshraf]

Love it

[@user-mr6je9yg3w]

ɢʟᴀᴅ ʏᴏᴜ ʟᴏᴠᴇ ᴛʜᴇ ᴄᴏᴍᴍᴇɴᴛ., ʜᴇʟᴘʟɪɴᴇ ɪꜱ ꜱʜᴏᴡɴ ᴀʙᴏᴠᴇ ᴛᴇxᴛ ᴍᴀx ʜᴇ ᴡɪʟʟ ɪɴᴛʀᴏᴅᴜᴄᴇ ʏᴏᴜ ᴛᴏ ᴀ ʟɪꜰᴇ ᴄʜᴀɴɢɪɴɢ ʙᴜꜱɪɴᴇꜱꜱ ᴏᴘᴘᴏʀᴛᴜɴɪᴛʏ☝️••

[@Hassan-Cher]

I think young people need to be presented with a viable alternative to buying a house. Btw I have a strong suspicion that the housing finance system in the UK was specifically designed so that people ended up with lifetime or long term (20/25 year) mortgages. (In the banking sector this is known as inter-generatonal equity i.e. that each person is indebted for the lifespan of one generation). Land and property prices were kept artificially high by restricting supply through the planning system. Self build was made impossible. Renters were not protected etc,

[@ali.ottawa]

Sh. Yusuf Al-Qaradawi, Rahimaullah 🙏

[@user-mr6je9yg3w]

ɢʟᴀᴅ ʏᴏᴜ ʟᴏᴠᴇ ᴛʜᴇ ᴄᴏᴍᴍᴇɴᴛ., ʜᴇʟᴘʟɪɴᴇ ɪꜱ ꜱʜᴏᴡɴ ᴀʙᴏᴠᴇ ᴛᴇxᴛ ᴍᴀx ʜᴇ ᴡɪʟʟ ɪɴᴛʀᴏᴅᴜᴄᴇ ʏᴏᴜ ᴛᴏ ᴀ ʟɪꜰᴇ ᴄʜᴀɴɢɪɴɢ ʙᴜꜱɪɴᴇꜱꜱ ᴏᴘᴘᴏʀᴛᴜɴɪᴛʏ☝️••

[@idealshaqiri1994]

The options you give wayhome ecc are available only in the uk I live in Italy, do you know any company like this that operates here? Thanks

[@user-mr6je9yg3w]

ɢʟᴀᴅ ʏᴏᴜ ʟᴏᴠᴇ ᴛʜᴇ ᴄᴏᴍᴍᴇɴᴛ., ʜᴇʟᴘʟɪɴᴇ ɪꜱ ꜱʜᴏᴡɴ ᴀʙᴏᴠᴇ ᴛᴇxᴛ ᴍᴀx ʜᴇ ᴡɪʟʟ ɪɴᴛʀᴏᴅᴜᴄᴇ ʏᴏᴜ ᴛᴏ ᴀ ʟɪꜰᴇ ᴄʜᴀɴɢɪɴɢ ʙᴜꜱɪɴᴇꜱꜱ ᴏᴘᴘᴏʀᴛᴜɴɪᴛʏ☝️••

[@TheSkywalker4100]

What would you say regarding someone who is currently on a variable rate with Al rayan but now the monthly payment has become difficult to pay?

[@user-mr6je9yg3w]

ɢʟᴀᴅ ʏᴏᴜ ʟᴏᴠᴇ ᴛʜᴇ ᴄᴏᴍᴍᴇɴᴛ., ʜᴇʟᴘʟɪɴᴇ ɪꜱ ꜱʜᴏᴡɴ ᴀʙᴏᴠᴇ ᴛᴇxᴛ ᴍᴀx ʜᴇ ᴡɪʟʟ ɪɴᴛʀᴏᴅᴜᴄᴇ ʏᴏᴜ ᴛᴏ ᴀ ʟɪꜰᴇ ᴄʜᴀɴɢɪɴɢ ʙᴜꜱɪɴᴇꜱꜱ ᴏᴘᴘᴏʀᴛᴜɴɪᴛʏ☝️••

[@Jamal-Ahmed786]

It's alright to save outright for a house if your not having to pay rent. But what if your having to pay rent, how will you save then?

[@TheTemporary1ne]

Asalaamualaikum, is re financing a house using Islamic broker halal? Refinancing for the sake of releasing equity and using that money for personal use.

[@IFGuru]

No issues with it as long as done in an Islamic way.

[@studentofknowledge6431]

Gatehouse is back. But high rates.

[@IFGuru]

Correct. Return of the Jedi

[@khalidasubie9521]

Do you have a deal with them because you’re listed on the recommended section.

[@user-mr6je9yg3w]

ɢʟᴀᴅ ʏᴏᴜ ʟᴏᴠᴇ ᴛʜᴇ ᴄᴏᴍᴍᴇɴᴛ., ʜᴇʟᴘʟɪɴᴇ ɪꜱ ꜱʜᴏᴡɴ ᴀʙᴏᴠᴇ ᴛᴇxᴛ ᴍᴀx ʜᴇ ᴡɪʟʟ ɪɴᴛʀᴏᴅᴜᴄᴇ ʏᴏᴜ ᴛᴏ ᴀ ʟɪꜰᴇ ᴄʜᴀɴɢɪɴɢ ʙᴜꜱɪɴᴇꜱꜱ ᴏᴘᴘᴏʀᴛᴜɴɪᴛʏ☝️••

[@billybob3279]

So have you bought a property yourself Mr Ibrahim? What's your situation?

[@IFGuru]

Bought with Gatehouse.

[@sadaoshi6110]

Allah did not prohibit a thing except that it is harmful for us. To what extend can we justify any sin, particularly one which our Prophet, peace be upon him, said “There are seventy degrees of usury, the least of which is equivalent to a man committing zina with his mother”. Owning a home is by no way a necessity. There are alternatives. Would the Western Muslim eat harām meat if there were no halal alternatives, or simply eat vegetables (i.e rent)? If the situation is such that there is no food at all but harām meat then it’s a different topic. Let’s not try hide behind fatāwa’s that are anomalous. We are answerable to Allāh individually and we shouldn’t deceive ourselves in thinking Qardawi or any other mufti will help us because of following fatāwa that meet our desires. Upon conquering Al-Aqsa, Umar ibn al-Khattab, may Allah be pleased with him, said, “Verily, we were a disgraceful people and Allah honored us with Islam. If we seek honor from anything besides that with which Allah honored us, Allah will disgrace us.” (Sahīh)

[@user-mr6je9yg3w]

ɢʟᴀᴅ ʏᴏᴜ ʟᴏᴠᴇ ᴛʜᴇ ᴄᴏᴍᴍᴇɴᴛ., ʜᴇʟᴘʟɪɴᴇ ɪꜱ ꜱʜᴏᴡɴ ᴀʙᴏᴠᴇ ᴛᴇxᴛ ᴍᴀx ʜᴇ ᴡɪʟʟ ɪɴᴛʀᴏᴅᴜᴄᴇ ʏᴏᴜ ᴛᴏ ᴀ ʟɪꜰᴇ ᴄʜᴀɴɢɪɴɢ ʙᴜꜱɪɴᴇꜱꜱ ᴏᴘᴘᴏʀᴛᴜɴɪᴛʏ☝️••

[@joshcaraballo5151]

Listen I’m new to Islam and still learning. I understand the idea of being Harám and not living above your means . But I’m the U.S. unless you’re a millionaire it is almsot impossible to buy a house flat out with cash and owe nothing . You would still need some kind of mortgage . Then even if you could buy it flat out you still have maintenance fees unless you do the work yourself and property taxes . So no matter how you look at it you’re going to owe something at some point .

[@tahamohd1409]

I have seen many financial advisors debating whether buying a house is a good or bad thing to do, ultimately, it's probably not an absolute necessity for anybody, right? and Riba is a major major sin. How does Al Qaradawi justify his fatwa?

[@lentilsouper]

​@@hamza361you can't. The scholars differ on that more so due to it in their view not meeting the criteria for a loan with riba to begin with. But that's a whole different discussion.

[@user-mr6je9yg3w]

ɢʟᴀᴅ ʏᴏᴜ ʟᴏᴠᴇ ᴛʜᴇ ᴄᴏᴍᴍᴇɴᴛ., ʜᴇʟᴘʟɪɴᴇ ɪꜱ ꜱʜᴏᴡɴ ᴀʙᴏᴠᴇ ᴛᴇxᴛ ᴍᴀx ʜᴇ ᴡɪʟʟ ɪɴᴛʀᴏᴅᴜᴄᴇ ʏᴏᴜ ᴛᴏ ᴀ ʟɪꜰᴇ ᴄʜᴀɴɢɪɴɢ ʙᴜꜱɪɴᴇꜱꜱ ᴏᴘᴘᴏʀᴛᴜɴɪᴛʏ☝️••

[@AliTunio]

I disagree with the implications of this video. You may have shared your personal view that you would be reluctant to get a conventional interest mortgage. However you have given those people who are on the fence about Islamic mortgages because they are leaning more towards the convenience of a conventional interest mortgage and ambiguous green light. I think it's incumbent upon you to mention the Islamic View on the severity of Interest and debt. It is more preferable for migration to a car than for somebody to go ahead and remain in the place that is forcing them into such a great sin. Of course if they cannot find a way that's a different story and yes a real Islamic scholar should be involved at all steps. However how many compassionate imams and so-called Scholars go ahead and give people the green light to go utilize interest. They start with one house they become desensitized and then they go on to buy multiple properties changing their viewpoints and losing that resistance they had towards interest. This video is irresponsible with the following that you have and the platform that you represent. I say this because I'm one of your fans.

[@TheTenners]

Fully agree. Allah swt promises in the Quran to destroy RIBA and a War if you partake in it. Chapter 5 verse 3 mentions the conditions to eat meat, but says if compelled by extreme hunger - not intended to sin - Allah is forgiving. If Allah swt wanted to mention a condition for riba, wouldn’t He? I am just asking Question and not giving a fatwa, may Allah guide us all.

[@IFGuru]

We appreciate you sharing your thoughts and comments like this add to the debate of people watching and they can benefit from these perspectives. Our view I think was clear in the video. There are some very senior scholars with good reasons for allowing leniency in some instances. I think it's fair to discuss that. It's not like the fatwa is hidden 🙂.

[@tahamohd1409]

I love this comment

[@KhanNakash]

Well said, I couldn't agree more. Scholars on the panel who approved islamic mortgages have said candidly that islamic mortgages provide problems for scholars BUT they have given the green light to expand the industry to eventually get a fully halal option. Ibrahim you interviewed the imam who said this on Islam Channel, please discuss this more! People need to know this.

[@user-mr6je9yg3w]

ɢʟᴀᴅ ʏᴏᴜ ʟᴏᴠᴇ ᴛʜᴇ ᴄᴏᴍᴍᴇɴᴛ., ʜᴇʟᴘʟɪɴᴇ ɪꜱ ꜱʜᴏᴡɴ ᴀʙᴏᴠᴇ ᴛᴇxᴛ ᴍᴀx ʜᴇ ᴡɪʟʟ ɪɴᴛʀᴏᴅᴜᴄᴇ ʏᴏᴜ ᴛᴏ ᴀ ʟɪꜰᴇ ᴄʜᴀɴɢɪɴɢ ʙᴜꜱɪɴᴇꜱꜱ ᴏᴘᴘᴏʀᴛᴜɴɪᴛʏ☝️••

[@Mzd10006]

No, you can rent

[@I24Y]

I don't who gave that fatwa, we shouldn't take the deen lightly and Allah made it simple and clear in the Quran that interest is haram. you don't have to be a scolor to understand that. Allah gave examples of what happened to the people in the past. Wallahi the deen is simple and Allah promises are true. so don't ever fall into interest. because on the day of judgement, we alone have to answer to Allah and no one will answer for us. so fear Allah

[@abdullahassaffah]

Mortgage insurance is harram there's no such thing as halal mortgage or Islamic interest doing it once is halal all these are modern day nonsense no scholars of past would agree with the opinions being thrown today whether its sheikh haitham on student finance or others whom I respect but disagree with this as they are mistaken

[@uteshcharon3109]

Blood comes out either way!!!!!!!!!!!!

[@haych6782]

Brothers, beware of Qardawi chief innovator, propagating misguidance and bidah

[@majidhussain3896]

mortgage is haram. Just rent and make Hijrah.

[@user-mr6je9yg3w]

ɢʟᴀᴅ ʏᴏᴜ ʟᴏᴠᴇ ᴛʜᴇ ᴄᴏᴍᴍᴇɴᴛ., ʜᴇʟᴘʟɪɴᴇ ɪꜱ ꜱʜᴏᴡɴ ᴀʙᴏᴠᴇ ᴛᴇxᴛ ᴍᴀx ʜᴇ ᴡɪʟʟ ɪɴᴛʀᴏᴅᴜᴄᴇ ʏᴏᴜ ᴛᴏ ᴀ ʟɪꜰᴇ ᴄʜᴀɴɢɪɴɢ ʙᴜꜱɪɴᴇꜱꜱ ᴏᴘᴘᴏʀᴛᴜɴɪᴛʏ☝️••

[@princeabs247]

looool

[@AftabAliProperties]

There is still an alternative. AAP (Aftab Ali Properties LTD) provides 0% interest on property purchase plans on selected properties. How do we (AAP) get in contact with IFG to explain this further? We are on Facebook and Instagram atm.

[@furqonlanang9250]

haram 100% cash brother this fiat money si corrupt the whole thing is rigged

[@user-mr6je9yg3w]

ɢʟᴀᴅ ʏᴏᴜ ʟᴏᴠᴇ ᴛʜᴇ ᴄᴏᴍᴍᴇɴᴛ., ʜᴇʟᴘʟɪɴᴇ ɪꜱ ꜱʜᴏᴡɴ ᴀʙᴏᴠᴇ ᴛᴇxᴛ ᴍᴀx ʜᴇ ᴡɪʟʟ ɪɴᴛʀᴏᴅᴜᴄᴇ ʏᴏᴜ ᴛᴏ ᴀ ʟɪꜰᴇ ᴄʜᴀɴɢɪɴɢ ʙᴜꜱɪɴᴇꜱꜱ ᴏᴘᴘᴏʀᴛᴜɴɪᴛʏ☝️••

[@sweetmaanu]

Keep in gold and buy when the gold is enough to buy home