asalam o alaikum, I am presently residing in a rented house and i have to pay considerable amount as rent. My question is that can i take home loan to buy a house to prevent myself from frequent shiftings and also save money (rent) which could be given as installment. Kindly guide me.Jazakallah
Answer
(Fatwa: 659/515=L/1430)
The Quran and Hadith warn those making transaction of interest in strongest terms. The Prophet (صلی اللہ علیہ وسلم) cursed those who receive interest, give it, write it and bear witness to it. Therefore, Muslims should avoid interest-based transaction as much as possible. But, if a house is purchased through bank in a way that the bank purchases the house and sells it to you for total price including the additional amount and you pay the total amount as price, it is lawful.
Allah (Subhana Wa Ta’ala) knows Best
Darul Ifta,
Darul Uloom Deoband