Q. Is it permissible to purchase a home by taking a mortgage from the bank with the intention of not missing or making any late payments (to avoid interest penalties) for a fixed period with a fixed pay back amount?
A. With respect to your question it is the normal procedure of banks (with respect to home financing and other similar transactions) that they provide a loan by putting the home under mortgage, and on this loan they charge interest at fixed rates. If this is the case, then it will not be permissible for you to purchase a home by taking out a mortgage from the banks, even if you have the intention of not missing payments. (This is a case where you will be required to pay interest, and it will not be permissible).
And Allah knows best.
Mufti Waseem Khan