Answered by: Maulana Irfan Ali
Question
Why is life insurance Haram? Why is interest in mortgages Haram even though you pay less for the house you bought over time? Meaning your house will be worth more in 25 years than the amount you bought it at.
بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم
In the name of Allah, the Most Gracious, the Most Merciful
Answer:
The Quran mentions in numerous places the prohibition of dealing with interest.[1]
The Prophet (peace be upon him) mentions that may the curse be upon the eater, witness, and writer of interest.[2]
The principle of interest transaction being unlawful is due to the Qurans explicit order. If one was to calculate the amount of sum borrowed over a period of time and the sum repaid there will be a significant difference.
Only Allah knows best
Written by Maulana Irfan Ali
Checked and approved by Mufti Mohammed Tosir Miah
Darul Ifta Birmingham