I live in New Zealand for the past 15 years with my children and my wife left me and my children in 2010. I am fed up of living in rental properties with home owners demands and rents goes up and up and up I pay weekly $420 which is very high. I am renting since 2000. Can I buy a home for myself to live in on bank loan or it is totally forbidden. Please advise in the light of Quran and Sunnah.
بسم الله الرحمن الرحيم
(Fatwa: 387/421/L=04/1436)
It is haram to take interest based loan in the light of the holy Quran. The holy Prophet Muhammad (صلى الله عليه وسلم) cursed those who receive interest, pay it, record it and bear witness to it.
Hence if you avoid taking interest based loan it is better for you. However, if it is very much difficult for you to stay in rented home and it is very tough to buy land or house then in this case if you take loan then it is hoped that you may be safe from the curse of interest.
Allah knows Best!
Darul Ifta,
Darul Uloom Deoband