Conventional and Islamic finance of home purchase : permissibility of mortgage in Canada

Fatawa Question

Assalamo Alikom Wa Rahmatu Allahi Wa Barakatuh. My name is Abdullah I came here with my family from 10 months I have 3 kids (1 girl 5 years and twins 7 months) we live in rental town house with monthly rent 1350 $ and the hydro cost me around 200 $ so the total is 1550 $,, cause we were looking for big place as my mother in law and father in law live here with us from beginning to help my wife in caring of the twins and when they will travel they will come back or my mother will do as we need always help for the kids as my wife will search for work to help in the income.... I worked in Wal-Mart night shift from 6 months… and I feel I wasting all my money in the rent and all my friends advise me to save this money for my kids with buying house specially that the prices is good these months… So I decide to bring money from my back country as 5 % down payment and take mortgage but I am afraid if I take the mortgage this will be "Reba" or the variable interest not consider that… So my friends advise me to send you my case in details and ask you is it Halal in Canada to do that or no and if not, can you show me Halal way to take a house without go to Reba ?… So please help me in that and appreciating your time. Jazaka Allahu Khayran Abdalla

Fatwa

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Publication Date

2009-04-17

Main Subjects

Financial and Accounting Sciences
Islamic Studies

Topics

• Islamic jurisprudence
• Housing
• Financing
• Purchasing
• Real property
• Commercial finance companies
• Subprime mortgage

No. of Pages

1

Data Type

Fatawa

Language

English

Record ID

BIM-734836

• APA
• MLA
• AMA