Fatwa: # 15963
Category: Financial Transactions
Country: South Africa
Date: 3rd December 2007

Title

If interest and insurance is haraam,then how can one buy a house without paying interest on the bond or paying insurance for it?

Question

If interest and insurance is haraam,then how can one buy a house without paying interest on the bond or paying insurance for it?

Answer

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatoh

Interest and insurance is indeed haram. The prohibition is expressly mentioned in the Quran and any ahadith.

Insurance constitutes as two sins, interest and gambling. Gambling is also expressly prohibited in the Quran.

One may obtain and interest free loan and purchase a house or purchase a house based on the shari principle of purchasing and selling. An owner of a house may sell a house with profit. A purchaser may pay cash on terms as per mutual agreement.

If her cannot afford purchasing a house, simply do not do so. one may continue hiring a house and pay rent on that.

And Allah knows best

Wassalam

Mufti Ebrahim Desai
Darul Iftaa

DISCLAIMER - AskImam.org questions
AskImam.org answers issues pertaining to Shar'ah. Thereafter, these questions and answers are placed for public view on www.askimam.org for educational purposes. However, many of these answers are unique to a particular scenario and cannot be taken as a basis to establish a ruling in another situation or another environment. Askimam.org bears no responsibility with regards to these questions being used out of their intended context.
  • The Shar's ruling herein given is based specifically on the question posed and should be read in conjunction with the question.
  • AskImam.org bears no responsibility to any party who may or may not act on this answer and is being hereby exempted from loss or damage howsoever caused.
  • This answer may not be used as evidence in any Court of Law without prior written consent of AskImam.org.
  • Any or all links provided in our emails, answers and articles are restricted to the specific material being cited. Such referencing should not be taken as an endorsement of other contents of that website.
The Messenger of Allah said, "When Allah wishes good for someone, He bestows upon him the understanding of Deen."
[Al-Bukhari and Muslim]