Ruling on mortgage
Fatwa No: 81377

  • Fatwa Date:9-8-1999 - Rabee' Al-Aakhir 27, 1420
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Question

What is the Islamic ruling about mortgage?

Answer

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) is His slave and Messenger.

Mortgage is confirmed by the Book of Allaah and the Sunnah of the Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) and by the consensus of the Muslim nation. Allaah Says (what means): {And if you are on journey and cannot find a scribe, then a security deposit [should be] taken. And if one of you entrusts another, then let him who is entrusted discharge his trust [faithfully] and let him fear Allaah, his Lord.} [Quran 2:283]

Moreover, ‘Aa’ishah  may  Allaah  be  pleased  with  her said: “The Prophet  sallallaahu  `alayhi  wa  sallam ( may  Allaah exalt his mention ) died while his shield was mortgaged with a Jew for 30 Saa’ (A Saa’ equals approximately one and half kilogram) of wheat.” [Al-Bukhaari and Muslim]

Also, the scholars of the Muslim nation  may  Allaah  have  mercy  upon  them agreed in a consensus that Mortgage is permissible.

Finally, it should be noted that according to the opinion of the majority of the scholars  may  Allaah  have  mercy  upon  them the mortgage is only valid when the mortgagee takes hold of the mortgaged object, and this is the view of the Shaafi’i School of jurisprudence as well.

Allaah knows best.

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