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Ruling on Buying a House Mortgaged to a Non-Islamic Bank

Answered as per Shafi'i Fiqh by Darul Iftaa Jordan
What is the Islamic ruling on buying a house, which is mortgaged to a non-Islamic bank, through Ijarah Muntahia Bittamleek(Lease to own) where an Islamic bank issues a cheque with the value of that mortgage to the non-Islamic bank, then issues another with the rest of the house`s value to the owner. Later on, all parties will meet at the Lands Department to carry on with the needed procedures?

All perfect praise be to Allah The Lord of the Worlds and may His peace and blessings be upon our Prophet Mohammad and upon all his family and companions.

Based on the above question, it is evident that the Islamic bank is going to buy the house from its owner and pay the value of the mortgage to the non-Islamic bank. This form of sale is permissible because, in principle, transactions are lawful and this form doesn`t entail any violation of Sharia.

In conclusion, there is no harm in carrying on with the transaction mentioned in the above question. And Allah knows best.

This answer was collected from the official government Iftaa Department of Jordan.

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