Taking interest bearing loan to buy house

22-8-1999 | IslamWeb

Question:

First I would like to say that I have no intention to buy a house, but many people say that taking a loan from banks and paying interest for buying a house in occidental countries when the house is not for commercial purpose is allowed. Can you please clarify this for me? wa jazaqumu ALLAHU khairan WASSALAMU ALAIKUM
Answer:

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

Riba (interest and/or usury) is forbidden by the text of the Quran; Allah Says (what means): {But Allah has permitted trade and has forbidden interest.} [Quran 2:275]

Moreover, Allah declared war against the people who did not repent from dealing with Riba. There are no details in usury whether or not it is for a necessity, so in principle, if it is confirmed that there is Riba in the money, it is not permissible to take it whether it is for a house or else. It is also known that whoever resorts to this dealing, he would be in necessity, but Allah did not forgive [or excuse] the person who is in necessity. Therefore, one should avoid this abominable transaction.

Allah knows best.

www.islamweb.net