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What is the ruling on mortgage?

Answered as per Hanafi Fiqh by DarulIftaBirmingham

What is the ruling on mortgage?

It should be borne in mind that buying properties on a mortgage is not permissible as it is interest related and taking & giving interest is counted as one of the greatest and heinous sins in Islam.

Allah Tala has declared war on those who do not give up taking interest.

“O’ you who believe! Be afraid of Allah and give up what remains from riba (interest) if you are believers. And if you do not do it, then be ready for war with Allah and his Prophet Sallallahu Alahi Wasalam. (Al-Baqarah v.228)

Therefore, one could derive that purchasing such properties on mortgages should be avoided. Similarly, the brothers who are planning to use the property as a mosque should look for alternative premises, which have been bought with halal money.

If the brothers cannot find alternative premises after looking around and choose the aforementioned premises, then the rent they will give to them will be permissible, even though they know it will be used to pay for the mortgage. The reason being is that one is not accountable for the actions of others.

In the Holy Quran Allah Tala has said:

“And nobody does anything but to his own account and no bearer of burden shall bear the burden of another.” (Al-Anam v.164)

Finally, after the mortgage gets paid off, then it will be permissible for the brothers to donate it for free. Even though it was purchased with unlawful wealth, but their ownership has been done on the property. Therefore, if they want to donate it to the mosque afterwards this will be correct. (Fatawa Rahimiyah p.158 v.9)

Mohammed Tosir Miah

Darul Ifta, Birmingham.

This answer was collected from DarulIftaBirmingham.co.uk, which is run under the supervision of Mufti Mohammed Tosir Miah from the United Kingdom.

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