Mortgages, halal or haram?
Submitted by on Mon, 14/07/2008 - 01:28
Dear Brother / Sister,
Is it religiously allowed to buy a house with the mortgage system?
Mortgage is essentially used to mean immovable financing system. Financing company buys an immovable property that the customer demands on behalf of the customer for cash and transfers the ownership to the customer. But the property is mortgaged to the financing company for the customer’s debt to the company. The customer pays the debt in monthly payments according to a payment plan until the due date.
If the system that a country or company use is that, it is okay and religiously allowed. But if it lets credit be used and uses interest it is not allowed.
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