The Mortgage System - Qazwini

One of the issues that frequently comes up is the mortgage system. The majority of people in the US purchase their homes through the mortgage system. In Islam, it’s haram to pay and receive interest, except for taking interest from a non-muslim. Why? Because we are dealing with that person according to his faith, which allows transactions involving interest. Some scholars say it’s haram to buy a house through the mortgage system as it involves paying interest. However, Sayed Sistani offers a loophole. He says that one can apply for a loan from the bank with the intention of not ‘taking a loan’ but ‘taking a gift’. When someone takes a gift, it’s not a loan to begin with, hence there is no expectation to pay interest. There is no issue with the regular payments to the bank as it is required by law (i.e. we are compelled to pay these regular payments). Any mandatory fees that we have to pay is considered a fine and there is no issue with paying fines in Islam.

[@zohaibazeb]

I see many issues with this concept, because no matter what we think of a loan or transaction you know the reality of what it is, your intention to take it as a gift can not be applied because it is not offered as a gift by the lender and when you sign the contracts you are bound by the loan as Allah says to be dutiful to your Oaths. So we can’t be treacherous in our dealings in all respect to our Shi’a brothers, and no evidence is provided via the Authentic Quran and sayings of the Prophet ﷺ or Ahlul Bayt عليهم السلام

[@AlHujjahIslamicSeminary]

Thank you for your feedback. Our scholars go by the guidelines Islam has put for us. Interest is haram, but if there is a religious solution then there is no problem with it. For example, in Islamic law it’s haram to exchange 14 karat gold with 18 karat gold with a difference in price or weight. It’s a form of interest. But there are two common solutions: the first is to conduct two separate transactions. The first gold is sold, then in a second transaction the other higher karat gold is bought for a higher price. This is acceptable. Another solution is to include an additional item (like a pen) and such an exchange is permissible (so the 18 karat gold is exchanged with the 14 karat gold plus a pen with it). As long as there is a religious solution it becomes acceptable

[@seektruth581]

So if you just imagine it isn’t Riba then it isn’t? Good one Sistani 👍

[@antonisk7837]

Sistani is urging his followers to fool their own minds 😂 what a laugh

[@aliful14]

Salam Agha.. Please could you advise me on home equity financing and if i buy second property with the intention of selling it off after a year.the rent coming from 1st mortgage is prohibited but could i make khums on my rental profit unless i sell my second property..

[@huzefaburhanuddin6334]

So by your concept anything coming from non muslim is allowed?? If not how interest is a exception ?? Also then why just western countries many of other countries banking system is controlled my non Muslims. Just because you don't want to go against some rich people you are bending the rules?? That another problem following marajas. Will marajas going to take the responsibility on judgment day?? And did maraja told you to go by his ruling or it is just his opinion?? Did he took an oath that I am taking this responsibility in the eyes of Allah swt??

[@aliwasi28]

I am a Shia and my mind cannot accept it as the loan is given by the bank as loan, it is not a gift. we need a bit more clarification as it hurts me to live in a home which is mortgaged by the bank and that's why I dont buy a second investment property as I dont want to get into Ribah deeper and deeper I pray to Allah Subhana wa Taalah every day to help me become debt and ribah free independent person as soon as possible

[@AlHujjahIslamicSeminary]

Thank you for your feedback. Our scholars go by the guidelines Islam has put for us. Interest is haram, but if there is a religious solution then there is no problem with it. For example, in Islamic law it’s haram to exchange 14 karat gold with 18 karat gold with a difference in price or weight. It’s a form of interest. But there are two common solutions: the first is to conduct two separate transactions. The first gold is sold, then in a second transaction the other higher karat gold is bought for a higher price. This is acceptable. Another solution is to include an additional item (like a pen) and such an exchange is permissible (so the 18 karat gold is exchanged with the 14 karat gold plus a pen with it). As long as there is a religious solution it becomes acceptable.

[@aliwasi28]

@@AlHujjahIslamicSeminary When you exchange commodities, it is gain or ROI which is perfectly fine but here we know that we are buying a home using mortgage and paying more then borrowed, it cannot be considered as a gift because isn't the intention of the bank also count or should count more then the intention of the mortgagee? I know you are trying to help but it isnt working, TBH and may I request Agha to reconsider this ruling and be clear on it as it can help many in Western countries to make an informed and conscious decision instead of assumption that it is halal without knowing because many other brothers did that, in fact I came to know that many Islamic centers are on mortgage, how we can justify that?

[@AlHujjahIslamicSeminary]

@@aliwasi28 Thank you. We are not here giving our ruling. We are simply relaying the Fatwa of our scholars and Maraje’. They have considered these technical aspects in detail, and they have done so by considering Islamic guidelines. It is not a simple discussion for us to explain all of its aspects here. You can take our course Contemporary Fiqh for a detailed discussion on what scholars have said.

[@aliwasi28]

@@AlHujjahIslamicSeminary Sure, thanks, jazakAllah and iltimas e dua, will do

[@roberthannah7983]

@@AlHujjahIslamicSeminary " As long as there is a religious solution" ..... but this makes a religious solution a joke!

[@aliasghar520]

Salam and thank you for the explanation. Just one more question. What is the ruling for Islamic banking? Where the intention is that we are paying rent to the bank and bank gifts the home to you after the loan has been repaid fully .

[@AlHujjahIslamicSeminary]

Salam Alaikom. This can be a potential workaround, but most banks would probably not accept to make such a transaction. They don’t consider it as rent.

[@sarasaske]

Here you can see power of the Ulama, making haram halal and halal haram. Doesnt fear Allah swt.

[@saadsiddiqui7289]

Is he joking or he is actually serious?

[@yusuf.alajnabi]

If I could make something haram it would be renting. Why because it would force the rich amongst the umma to act and assist in buying everyone a house.

[@roberthannah7983]

The reality is that we shouldnt follow scholars who dont know much about finance. Take a mortgage if the payments are affordable and you are not exploiting anybody, and if you are not being exploited and the home suits your needs. This has little to do with greedy moneylenders explointing poor indebted farmers and selling them into slavery at the time pf the prophet.

[@masterboss444]

Astaghfillah

[@saadjamil8575]

What?!?!!!

[@zafarrizvi7671]

Go live on road . Dont buy a house . Live on rent. That is the only way out.