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Guidance residential re-financing

Answered as per Hanafi Fiqh by ShariahBoard.org

Asalamualaikum,

I have bought a house from guidance residential can I do refinancing with guidance residential to change my plan form 30 years to 15 years and to lower the monthly payments? 

Jazak Allah

بسم اللہ الرحمن الرحیم

الجواب وباللہ التوفیق

In order to reduce the mortgage while also reducing the period becomes an interest-based arrangement, which is illegal. However, it is permissible to reduce the period without reducing the mortgage. 

واما الرِّبَا فِي الدّين فَهُوَ على وَجْهَيْن :احدها ان يَبِيع رجلا مَتَاعا بِالنَّسِيئَةِ فَلَمَّا حل الاجل طَالبه رب الدّين فَقَالَ الْمَدْيُون زِدْنِي فِي الاجل ازدك فِي الدَّرَاهِم فَفعل فان ذَلِك رَبًّا وَالثَّانِي ان يَقُول رب الدّين للمديون قبل مَحل الاجل اعطني مَالِي فاحط عَنْك بَعْضًا من ديني فَفعل فان ذَلِك رَبًّا للمديون وَلَا يحل لَهُ ذَلِك (النتف فی الفتاویٰ:۱/۴۸۵)

فقط واللہ اعلم بالصواب

This answer was collected from Shariahboard.org. It was established under the supervision of the eminent faqih of our era, Hazrat Shah Mufti Mohammed Navalur Rahman damat barakatuhum.

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