Dear Mufti Sahab, Am I excused to pay mortgage for my house instead of paying rent when the amount of rent is higher than the amount of mortgage (given the fact that the extra amount I am paying for my rent actually belongs to me)? Your early reply will be beneficial for me to make a decision. JazakAllah.
In the name of Allah, Most Gracious, Most Merciful
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh
We understand your predicament and also the need and concern to have a personal house.
However, it is important to note that taking out any conventional loan will result in one being involved in riba. You also know that interest is prohibited as interest incurs the wrath of Allah Ta’ala. One must endeavor to follow the commandments of Allah. The need to pay a mortgage for your house instead of paying rent(even though the payment of the rent is higher than the amount of mortgage) does not justify breaking the commandments of Allah Tala. Consider the point. Is it worth compromising the Dīn of Allah for some worldly gain in this temporary world? We are not against the idea of owning a house. It is comfortable and has a lot more benefits than renting a house. Our only worry is that this freedom should not come with the price of Dīn.
See the following Ayāt:[1]
يَا أَيُّهَا الَّذِينَ آمَنُوا لَا تَأْكُلُوا الرِّبَا أَضْعَافًا مُضَاعَفَةً وَاتَّقُوا اللَّهَ لَعَلَّكُمْ تُفْلِحُونَ (سورة العمران: 130(
“O you who believe! devour not usury, doubled and multiplied; but fear Allah;
that ye may (really) prosper.” [Āl-῾Imrān 3:130]
أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ سورة البقرة: 278)
“O those who believe fear Allah and give up whatever remains of Ribā, if you are believers.” [Al-Baqarah 2:278]
فَإِنْ لَمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِنَ اللَّهِ وَرَسُولِهِ وَإِنْ تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ (سورة البقرة:279)
But if you do not (give it up), then you are warned of the declaration of war from Allah and His Messenger. However, if you repent, shall have your principal. Neither wrong (others), nor be wronged. (Al-Baqarah 2: 279)
Furthermore, we are also aware of the great challenges of life we are being faced with today, especially in the western environment. Islam is indeed a Dīn that provides a solution for all conditions and times and does not make it difficult for people. You may consider other alternatives like arranging a private interest-free loan from friends or relatives. You may even consider entering into a Diminishing Musharakah project with a partner.
One can understand the Diminishing Musharakah project from Mufti Taqi Uthmani in his book An introduction to Islamic Finance.
Below is a brief explanation on Diminishing Musharakah.[2]
A client wants to purchase a house for which he does not have adequate funds. He approaches the financier who agrees to participate with him in purchasing the required house. 20% of the price is paid by the client and 80% of the price by the financier. Thus, the financier owns 80% of the house while the client owns 20%. After purchasing the property jointly, the client uses the house for his residential requirement and pays rent to the financier for using his share in the property.
At the same time, the share of the financier is further divided into eight equal units, each unit representing 10% ownership of the house. The client promises the financier that he will purchase one unit after three months. Accordingly, after the first term of three months, he purchases one unit of the share of the financier by paying 1/10th of the price of the house. It reduces the share of the financier from 80% to 70%. Hence, the rent payable to the financier is also reduced to that extent. At the end of the second term, he purchases another unit increasing his share in the property to 40% and reducing the share of the financier to 60% and consequentially reducing the rent to that proportion. This process goes on in the same fashion until after the end of two years, the client purchases the whole share of the financier reducing the share of the financier to ‘zero’ and increasing his share to 100%.
This arrangement allows the financier to claim rent according to his proportion of ownership in the property and at the same time allows him a periodical return of a part of his principal through purchases of the units of his share.
However, the following steps must be strictly adhered to as mentioned in order:
1. To create joint ownership in the property (Shirkat-al-Milk).
2. Giving the share of the financier to the client on rent.
3. A promise from the client to purchase the units of share of the financier.
4. An actual purchase of the units at different stages.
5. Adjustment of the rental according to the remaining share of the financier in the property.
And Allaah Ta’ala Knows Best.
Akhyar Uddin
Student, Darul Iftaa
Buffalo, New York, USA
Checked and Approved by
Mufti Ebrahim Desai.
صحيح مسلم (3/ 1218
حدثنا عثمان بن أبي شيبة، وإسحاق بن إبراهيم، واللفظ لعثمان، قال إسحاق: أخبرنا، وقال عثمان: حدثنا جرير، عن مغيرة، قال: سأل شباك إبراهيم، فحدثنا عن علقمة، عن عبد الله، قال: «لعن رسول الله صلى الله عليه وسلم آكل الربا ومؤكله»
130/3) سورة آل عمران
يا ايها اللذين امنوا لا تاكلوا الربوا اضعافا مضافعة
تبيين الحقائق – ث (4/ 85)
وفي اللُّغَةِ هو مُطْلَقُ الزِّيَادَةِ قال اللَّهُ تَعَالَى { وما آتَيْتُمْ من رِبًا } إلَى قَوْلِهِ { فَلَا يَرْبُوَ عِنْدَ اللَّهِ } وَسُمِّيَ الْمَكَانُ الْمُرْتَفِعُ رَبْوَةً لِزِيَادَتِهِ على سَائِرِ الْأَمَاكِنِ ارْتِفَاعًا وَالرِّبَا مُحَرَّمٌ بِالْكِتَابِ وَالسُّنَّةِ وَإِجْمَاعِ الْأُمَّةِ أَمَّا الْكِتَابُ فَقَوْلُهُ تَعَالَى { وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا } وَأَمَّا السُّنَّةُ فما رُوِيَ عن ابْنِ مَسْعُودٍ أَنَّ النبي صلى اللَّهُ عليه وسلم { لَعَنَ آكِلَ الرِّبَا وَمُوَكِّلَهُ وَشَاهِدَيْهِ وَكَاتِبَهُ } رَوَاهُ أبو دَاوُد وَأَحْمَدُ وَالتِّرْمِذِيُّ وَصَحَّحَهُ وقال عليه الصَّلَاةُ وَالسَّلَامُ { الذَّهَبُ بِالذَّهَبِ وَالْفِضَّةُ بِالْفِضَّةِ وَالْبُرُّ بِالْبُرِّ وَالشَّعِيرُ بِالشَّعِيرِ وَالتَّمْرُ بِالتَّمْرِ وَالْمِلْحُ بِالْمِلْحِ مِثْلًا بِمِثْلٍ يَدًا بِيَدٍ فَمَنْ زَادَ أو اسْتَزَادَ فَقَدْ أَرْبَى الْآخِذُ وَالْمُعْطِي فيه سَوَاءٌ } رَوَاهُ الْبُخَارِيُّ وَأَحْمَدُ وَعَنْ عبد اللَّهِ بن حَنْظَلَةَ غَسِيلِ الْمَلَائِكَةِ أَنَّهُ قال : قال رسول اللَّهِ صلى اللَّهُ عليه وسلم { : دِرْهَمُ رِبًا يَأْكُلُهُ الرَّجُلُ وهو يَعْلَمُ أَشَدُّ من سِتٍّ وَثَلَاثِينَ زَنْيَةً } رَوَاهُ أَحْمَدُ وَأَجْمَعَتْ الْأُمَّةُ على تَحْرِيمِهِ حتى يُكَفَّرُ جَاحِدُهُ
سنن الدارقطني (3/ 403)
ثنا أَحْمَدُ بْنُ الْعَبَّاسِ الْبَغَوِيُّ , نا يَحْيَى بْنُ يَزْدَادَ أَبُو الصَّقْرِ الْوَرَّاقُ , نا الْحُسَيْنُ بْنُ مُحَمَّدٍ , نا جَرِيرُ بْنُ حَازِمٍ , عَنْ أَيُّوبَ , عَنِ ابْنِ أَبِي مُلَيْكَةَ , [ص:404] عَنْ عَبْدِ اللَّهِ بْنِ حَنْظَلَةَ غَسِيلِ الْمَلَائِكَةِ , قَالَ: قَالَ رَسُولُ اللَّهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ: «دِرْهَمٌ رِبًا يَأْكُلُهُ الرَّجُلُ وَهُوَ يَعْلَمُ أَشَدُّ مِنْ سِتَّةٍ وَثَلَاثِينَ زِنْيَةً»
مشكاة المصابيح (2/ 860)
وعن علي رضي الله عنه أنه سمع رسول الله صلى الله عليه وسلم لعن آكل الربا وموكله وكاتبه ومانع الصدقة وكان ينهى عن النوح. رواه النسائي
[2] An introduction to Islamic Finance page 81-83