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Amanah mortgage from HSBC

Answered as per Hanafi Fiqh by Tafseer Raheemi

Assalamualaikum w w

HSBC provide amanah finance which is supposed to be shariah compliant.

But I am a bit wary of taking their word for it.

They provide a mortgage which you can repay over a number of years.. And until that is paid off you also pay rent.

Now the rent is reviewed every 3 months… This is the bit I am unsure about… If the rent goes up and down based on the interest rates, does that still keep the mortgage shariah compliant?


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Walaikumussalm w w

You are quite right in your doubts. When they keep reviewing and changing every 3 months, then it is definitely interest based. You can hold your ear from one side or the other, they are both the same.

Plus, you end up paying more on this mortgage than a conventional one. Therefore my advice would be to avoid it.

Buy cash or borrow from family and friends, or buy a small affordable house rather than a large one.

If you cannot afford to buy with your own money, nor can you undertake a private interest-free loan, we would advise you to adopt Taqwa, and to continue living on rent. Insha Allah, Allah will grant you Barakah and pave some way out for you.

Hazrat Umar R.A said,

“فَدَعُوا الرِّبَا وَالرِّيبَةَ”

“Leave interest and anything that has the doubt of interest. (Ibn Majah)

The Hadith says

دع ما بريبك الي ما لا بريبك
“Leave that which creates suspicion and take which is free from doubt”

And Allah is All Knowing

Many people live in rented accommodation. Hazrat mawlana Ahmed Ali lahori ra spent his whole life in a rented property. I am in Vancouver at the moment. My host has been living in this rented house for 20 years, with his parents, family and brother. He has always refused offers of mortgage and finance.

This answer was collected from Tafseer-Raheemi.com the official website of Sheikh Abdul Raheem Limbada (Hafizahullah) of UK.

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