Fatwa ID: 07726

Answered by: Molana Sibghat Ullah

Question:

I wanna buy a house in the USA, and take it with an APR from a non-Islamic bank, is this halal or haram? 

In the name of Allah, the Most Gracious, the Most Merciful

Answer: 

Conventional mortgages in the U.S. involve interest, where a bank loans money at a specific interest rate. Riba, or interest, is explicitly prohibited in Islam.

Allah says in the Quran: –

Those who consume interest will stand ˹on Judgment Day˺ like those driven to madness by Satan’s touch. That is because they say, “Trade is no different than interest.” But Allah has permitted trading and forbidden interest.

Our prophet Peace be upon him said: – 

Cursed is the one who accepted interest, the one who paid it, the one who recorded it, and the two witnesses to it, saying they were all alike.

To conclude, it is haram according to the Quran and Hadith to buy a house on interest.

Hope this answers the question.

Only Allah knows best.

Written by Molana Sibghat Ullah

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham

 Quran, Sura Baqarah, Ayat: 275

ٱلَّذِينَ يَأْكُلُونَ ٱلرِّبَوٰا۟ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِى يَتَخَبَّطُهُ ٱلشَّيْطَـٰنُ مِنَ ٱلْمَسِّ ۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوٓا۟ إِنَّمَا ٱلْبَيْعُ مِثْلُ ٱلرِّبَوٰا۟ ۗ وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا۟ ۚ فَمَن جَآءَهُۥ مَوْعِظَةٌۭ مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمْرُهُۥٓ إِلَى ٱللَّهِ ۖ وَمَنْ عَادَ فَأُو۟لَـٰٓئِكَ أَصْحَـٰبُ ٱلنَّارِ ۖ هُمْ فِيهَا خَـٰلِدُونَ 

Those who consume interest will stand ˹on Judgment Day˺ like those driven to madness by Satan’s touch. That is because they say, “Trade is no different than interest.” But Allah has permitted trading and forbidden interest. Whoever refrains—after having received a warning from their Lord—may keep their previous gains, and their case is left to Allah. As for those who persist, it is they who will be the residents of the Fire. They will be there forever.

 Sahih Muslim, Book of Transaction, Chapter of usury.

: عن جابر رضي الله عنه قال: “لَعَنَ رَسُولُ اللهِ صلى الله عليه وسلم آكِلَ الرِّبَا، وَمُوكِلَهُ، وَشَاهِدَيْهِ، وَكَاتِبَهُ.” كتاب المساقاة، باب لعن آكل الربا وموكله وشاهديه وكاتبه