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To rent or to mortgage

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#1 [Permalink] Posted on 21st March 2021 14:43
Asalamu alaykum,

I was wondering what peoples thoughts on this subject was based in the UK. All countries welcome to comment on the issue based on their area too.

Is getting a mortgage justified as rent
ends up costing more than mortgaging And prices are so high an average earning person will not be able to afford to buy a house.
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#2 [Permalink] Posted on 21st March 2021 15:38
Please post questions such as the ones posed in this topic to the Ulamaa. Or click here for a vast library on islamqa.org. Alternatively, you can get support locating available answers online in the Q&A Support section of this form here


islamqa.org/hanafi/qibla-hanafi/37324

Mortgage versus Rent (Paying someone elses Mortgage perpetually?)

Answered according to Hanafi Fiqh by Qibla.com

Answered by Shaykh Ilyas Patel

Question
It is obvious that interest is Haram. But could you please answer the following question on “minimising” involvement in the interest based economic system: One in the West has two ‘choices’ (if no Islamic finance is available) – either to take out a mortgage and pay it off as soon as possible; or to pay rent for the rest of their life – which in practice usually means paying off some body else’s interest payments on their mortgage(s). My point being is that the Muslim who rents may over their lifetime pay a lot more interest (indirectly – since many rental properties are ‘investment properties’ on a mortgage); wheras as the Muslim who takes their own mortgage and pays it off within a few years – can spend the rest of their life free from the interest system. Looking at it from this perspective – there may be a “net minimisation of usury” by taking a mortgage oneself. Please explain why it is better to rent (when renting may just mean a lifetime of supporting the usury system by paying off someone elses mortgage)?

Answer:
In the name of Allah Most Compassionate Merciful

I hope you are fine and in the best of health and iman.

You have a good question though it would be better to rent than take an interest-based mortgage. If your point of question is taken into consideration and people were allowed to take mortgage in order to minimise involvement then the question would be how many people will pay off or will be able to pay off their mortgage as soon as possible? In addition, it will open a door to many people taking mortgages when they do not need to.

The Prophet (Allah bless him and give him peace) said, there will come a time when interest will become widespread and those who are not dealing in interest its smoke will reach one.’

In the light of the hadith, every person will be affected by interest. If we take every point into consideration, many of our dealings and transactions would be forbidden (haram). Therefore, one has to try not to deal with it directly, and that which is indirect involvement, we have to leave it to the mercy of Allah, as we are not responsible for what is beyond our capacity.

And Allah alone knows best
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