I have mortgage for the home I am living with family, and also for the car I am driving for personal need. I have Nisab amount of gold. Should I take my mortgage instalment payment into account for Zakat calculation? Please make it clear. Thank you.

In the name of Allah, the most Beneficent, the most Merciful.

Answer

Regarding short-term and long-term loans, the preferred opinion is that only short-term loans will be deducted and not the long-term loans. Therefore, with regards to your question only the monthly mortgage repayments should be deducted from your zakatable assets and not the total mortgage. (Jadeed Fiqhi Masaail p.213 v.1)

Finally, as you have the gold nisab for zakat, it will be obligatory for you to give 2.5% of the total value of the gold. Zakat is compulsory upon a person who possesses the quantum of nisab (i.e. 612.35 grams of silver or 87.47 grams of gold or currency, wealth equivalent to that amount) for a complete lunar year; which is over and above his basic needs and also free from debts. (Raddul Muhtar p.171 v.3)

Only Allah Knows Best

Mohammed Tosir Miah

Darul Ifta Birmingham