Buying necessary property on interest : buying a property on mortgage to save one’s business

Fatawa Question

Assalamu Alaikum WW, I have a question about mortgage. A friend of my mine owned a restaurant business and he is paying $ 1300 rent. Now the owner of the property wants to sell the property and my friend is afraid that whoever is going to buy the property will increase the rent. So he has decided to buy the property himself. The problem is that the only option he has to get the loan is thru a mortgage company. And if he buys the property he will end paying between $ 800 and $ 1000. He read it somewhere that a Muslim should not be losing money like this. Now my question to you is it permissible to buy the property (paying interest) in this situation because he will end up paying less than the rent ? Jazakum-Allah-e Kahir. Notes : I know you guys have lots of questions to answer, I would greatly appreciate it if you can answer this sooner.

Fatwa

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Publication Date

2002-08-17

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Purchasing
• Real property
• Subprime mortgage

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-725485

• APA
• MLA
• AMA