Are Mortgages Islamically Permissible? | Shaykh Atabek Shukurov 

There are 3 types of Islamic financing models used nowadays: 1. Murabaha. 2. Diminishing Musharaka (co-ownership with monthly installment combining rent and loan payback). 3. Ijara (rent to own). Conventional mortgages are haraam. For instance an incident where an institution convinced an Office of controller, that there is no FUNCTIONAL difference between Murabaha and Conventional mortgage. So although in practicality it ends up looking the same, in theory it is not equal because "you do not want to open the floodgates to clear cut riba". A murabaha is where the bank buys the property on behalf of the buyer and immediately sells it to the buyer on a higher price on installments. This is halal. However in a conventional mortgage the bank loans you money to buy the property in return for a larger amount of payback money. This is why conventional mortgage becomes haraam. The most commonly used mode of islamic financing is the diminishing musharaka, this is a shared ownership where the bank and the buyer both buy the property and become the co-owners. The buyer moves in and pays in his installment - a combination of rent to the bank for the share of property still owned by the bank and paying back some of the loan. Therefore the monthly installments might have varying degrees - the proportion of rent might be higher initially but as you keep contributing money towards the purchase i.e. paying the loan back the proportion of rent becomes smaller. The third mode of financing is ijarah, where the bank buys the property and you move in, keep paying fixed rents while at fixed time intervals buy a portion of the house. The bigger the portion of house you buy, the smaller your rent becomes. All 3 modes of Islamic financing have a lot of problems. Murabaha is not economically feasible for lending companies, although in theory it is the best, as they will run out of money to lend after the first few customers. Diminishing musharaka and ijara, both dump complete responsibility on the buyer although in theory and Islamic pronciples as co-owners they need to share the costs of maintenance and upkeep with the buyer. Bottom line - if you feel you have necessity i.e. hajah you may want to look at Islamic mortgages inspite of many non-Shariah compliant clauses. If you have a greater necessity i.e. bigger hajah or even a dire necessity i.e. dharoorah and have no access to Islamic mortgages then you may look at conventional mortgages. Every Muslim's situation is different and it is best that they talk to a scholar near them that they trust. May Allah subhana ta'ala forgive me for if I have miscontrued.

The prophet said that at the end of times the halal will become haraam and the haraam halal! Whether dealing with muslims or non muslims interest is interest! Riba is haraam

As a student of knowledge, it is sad to see so many people reacting emotionally and going crazy. This is one of the reasons that we as an Ummah are so totally ignorant that we lack in even basic adab [manners] towards the people of knowledge. They spend years studying and some "mini-mufti" who never studied under a scholar comes along, throws out one Ayah/Hadith (totally out of context) thinking they know more. It's like a neurosurgeon who spent 15 years studying and training being told they are wrong by some dude who went to the library and picked up a book of neurosurgery. At least listen to what this qualified scholar has to say rather than throwing quran ayah's completely out of context and ahadith. Why are your ayahs and ahadith out of context and not applicable?

a weird thing or the weirdest irony is that everyone has come in with comments that are not clear-headed. they have come with preassumptions. the funniest irony IMO.

May ALLAH SWT protects us and guid us to right path...as this end time is so tricky and dangerous ....ya ALLAH SWT protects ummah Ameen sum Ameen Ameen sum Ameen

روى مسلم (1598) عَنْ جَابِرٍ، قَالَ: ( لَعَنَ رَسُولُ اللهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ آكِلَ الرِّبَا، وَمُؤْكِلَهُ، وَكَاتِبَهُ ، وَشَاهِدَيْهِ ) ، وَقَالَ: (هُمْ سَوَاءٌ) .

If in doubt keep well away from a anything that is doubtful to be on the safe side. Keep your tawwakul in Allah and He will find a way out for you from every difficulty

May Allah forgive us all and grant us all Jannatul-Firdaus. Ameen

Jazaka'Allah Khair for the research and sharing. Alhamdulillah. May Allah guide us to the right path.

I am finding it difficult to believe what our brother is trying to convince. May Allah protect us all from RIBA. Aameen.

Ma Sha Allah. How interesting. Jazakumullahulkhayran

Very well explained, thanks.

Law of Dharurah justifies consuming Haram in exceptional circumstances Similarly in times of food shortage, famine, A muslim is permitted to eat even Pork if nothing else is avaialble and only until Halal food becomes available But when you are eating the Pork, you dont need to fill up your plate or worse, licking your fingers after eating pork, you only consume as much is needed to survive. Why is it that Cash price does not equal Credit price? Because the Bank or Money lender is insuring themselves against Risk and gauranteeing for themselves a profit by offering *Credit over time* Only Allah determines whether something will increase or decrease in value over time Muslims, *do not play games with Riba* , Allah has warned the believers to take heed of a *War from Allah and His messenger against* those engaged in *Usuary* agreements 🤔🤔

One thing I need to say is that I researched this man and he is a Hanafi and from central Asia which in my view has the most authentic and classical Hanafi tradition. That thirst for logic, that tendency to use mind, still shines after hundreds of years...Abu Hanifa was truly an amazing man. This is why the Fatwa brigade, the "Tell me it is haram so I can condemn others" crowd don't/won't/can't understand him.

I still believe that when you purchase a brand new car and you don't have any credit or are a first time buyer, they shouldn't charge you interest period! For what reason are they charging interest????? We have to be upright here and have a clear precise explanation as to why we need to build credit in the first place, then be in debt, then file for bankruptcy and then take financial education courses that tell you to pay cash if you can afford it, and don't get credit cards, because you don't need credit in the first place. If you can afford it and need it or want it, buy it, if not, forget it. I learned a lot on David Ramseys course on this after I filed for bankruptcy in 2015.

My beautiful sister in Islam. Haram is haram and halal is Halal. It is a greatest challenge. From me in Ghana. Mr Mamadou Bendaloue

The prophet's condemnation of riba was to stop the exploitation of the poor by unregulated money lenders. Banks did not even exist at the time. This has nothing to do with interest in modern regulated financial markets - so I agree with the speaker. Read scholars Fazlur Rahman and Abdullah Saeed.

May Allah guide this sheik

It reminds me of the story of sabbath breakers. Well... In this case we must follow what we want to follow, right? Whatever your definition of riba is, I just want to remind you that riba is haram in Islam. Question what you pay, do more research. If you feel you are being involved in riba (the way you are considered involved), then say no to it.

One of the conditions of that kind of transaction is that bank has to legally buy house and not just give you money

​What he says is clear but very sophisticated and delicate. I prefer that he discusses it with other scholars from other schools of thoughts especially who are specialized in this very topic to see if he is missing any important aspects. Allah awj asks us in the Quran to use our logic....getting a mortgage in a western country is more logical than renting a house or apartment because after say 15 years you will realize the difference: you continue to pay a huge portion of your income as monthly rents while a person you know becomes the owner of the house he lives in which means he owns hundreds of thousands of dollars. Thus I decided to get a mortgage to buy a house and when I become its owner after paying all the monthly installments of the mortgage I will sell it and give all the money to charity...or I continue to live in the same house but as a renter (tenant) and I can give the monthly rent as charity. It is very bad to live as a tenant because your landlord can access your rental unit under many excuses. Furthermore, you are unable to change anything in the rental unit for example to install a bathroom like the ones used in the Islamic countries....Living on your own property as a Muslim in a western country is too convenient.

If you twist and play with words you can turn any haram into halal just like nations before us.

Mashallah he made lot of Muslim life easy dessition about mortgage

Interviewer asks great questions

The guy said only if I posses that money it will be considered debt. I think a house has intrinsic value. You take possession of the house by occupying it. You are taking possession of something greater that cash money. You are taking possession for something that has intrinsic value. The bank requires you to leave the house when you don’t make payment. You don’t have full ownership of the house but you occupy it. You are still in debt with the bank that allows you to stay in the house.

May Allah save us all from riba. I personally follow many renowned scholars and none allows it. He is the exception which I personally didn't like. Don't make excuses for people to get involved in riba.

ok, look. i've agreed with this scholar on other issues as i don't follow any school of thought - just what makes sense. on this issue, his position is a bit shaky and it certainly lacked any quranic support (which is what this channel is supposed to be about). i personally feel that the rent-and-repay model or re-sale model provided by islamic banks is ok so long as you are on a fixed model (and not variable). i'm not saying the variable model is wrong - just that the fixed models look more solid from an islamic perspective. so while a little dissappointed with how he handled this issue, i feel this scholar handles the issue of the science of hadith very well. that's one place i do agree with him (or rather he agrees with me as i pretty much came to the hanafi conclusion through my own study whilst not knowing it was a hanafi position).

Masha Allah, good discussion. However, one question. The Sheikh gives very nice example " A Stone weight of Barley" - Here it is not an unknown transaction. But with regards to mortgage, will it not be unknown given the fact that you won't know what you are going to pay back exactly ? Like this year you could be paying for example 2.5% but next year or after 2 years you could be 3.5% or 1% depending on the interest rates prevalent at that time. With regards to stone, I agree although the exact weight is not known in kg or gms, but it is still a 'known' or rather 'fixed' weight which is not going to change but here in mortgage it will most defiantly change depending on the interest rates. Henceforth how can 'mortgage' be a KNOWN transaction ? If bank buys the property for say 100k and sells you for 120k with condition that you have to pay back 120k in 25 years then it is still understood (as the Sheikh simplifies it nicely) and a 'known' transaction. But in mortgage it is not like that right. It is not a straight buy + sell. You won't know how much you are going to pay the bank in the end right so to me it appears Unknown and the analogy of the 'Stone Barley' is not applicable to conventional mortgages that are discussed here.

You have to watch this with an open mind and not with the preconception that the interest paid to the bank is Riba. Then look to see wether it’s permissible or not in Islam. Don’t put it in the category of Riba without investigating it. I’m not sure myself! I haven’t got enough knowledge about it.

I was waiting for him to justify about the part where bank ask more money (intrest) on the top of the money they give.

I am still perplexed about Riba. Is it, as according to the Quran, and if I understood correctly, that is when one borrows the money and the creditor asks for double the re-payment and/or he multiplies that 3x, 4x and so on, like a loan shark? Thanks for any insight

Muslim bussiness in the west struggle to develop, for one to succeed financially borrowing from the banking system is a must it's purpose is to lend on interest, if there was no interest there would be no banks.

I definitely understand his position. It can be alarming because we've been taught in a certain manner. There's many hadith that might seem contradictory when another hadith seems to be saying the opposite. But our religion was never rigid or finite. It does have flexibility in complex situations such as time, culture, geography, and yes even financial institutions. I have seen mortgages with a similar format. The lender says, I will buy this house from Thomas for a $100k lump sum, and resell it to Daisy for $110k as a discount if she pays a lump sum. If she makes payments, the price goes up to $135k. Daisy will pay monthly and a seemingly $100k home is paid for over the 20 year period for $135k. Your paycheck is doing the same thing. Just ask your HR department. Insurance? Same. Education? Same! Any paper currency is the exact same premise. Are you a renter? You're just paying a lender through another person for a service and dwelling you'll never actually own. When you purchase food, you eat it and benefit from the nutrients. You can eat it, or save it, or give it away, correct? Its yours. When you pay rent you can't. The very definition of 'usery'. You're paying for something that will never be yours no matter how long you pay for it. I think it's a welcomed prospective that should be given its merit. And continue to be researched. If you don't want to have a traditional mortvage, don't. Make duaa and be charitable so others don't feel compelled to. If that's your intention, to save people from sin, correct? Please lend interest free money and mortgages. Start an organization that does! Send a student to go study! Sponsor one. Solutions. Contributions. Not keyboard Ninjas, lol! Salaam! May Allah rectify our situations. Ameen.

The following are some ways that Riba is different from Mortgage Interest: ~ With riba, the rich lender does not contribute to any business, he simply uses his money to grow his wealth. With mortgage, the rich lender (or bank) at least mandates the borrower to get an appraisal, inspection and home insurance. They spend time to review those docs too. Should they not be compensated for putting in their time to review documents that benefit the home and the borrower? ~ With real riba, the lender lends money, and he gets back money with extra. Its money for money plus extra. Or gold for gold plus extra. With mortgage, the bank never hands you the money. Instead they hand the money to the seller and then make an agreement with you to transfer the house to you for a higher price. Its basically a product for money, like a trade, but not money for money. ~ With mortgage, the borrower and lender each put up their own money to fund the purchase therefore both having a stake in the house, both legally and practically. This is like a business partnership with the bank. With riba loans, no such partnerships exists where both parties are tied to a commodity.

A practical solution would be to take a basket of commodities I e flour, sugar, milk, rice, gasoline etc. Price it at the time of the loan e.g. valued at $50. Assuming loan amount is $1000 which will give you 20 units of the commodities. At a later period say at repayment the commodities are valued at $55. Then amount owed would be 55*20=$1100. The only problem is what would be the incentive for someone to lend the money and how to incentivise it. Parties could agree on an additional mark up of say x% on the basket at repayment to incentivise it.You don't have to change a whole financial system for it

Are banks/financial institutions commercial/business/for-profit entities, or are they non-profit/charity organizations? How do banks make money for their operating expenses? How does a middle-class family go about buying a house without a mortgage, a car without a car loan, or get an interest-free credit card? Is the western banking system considered insensitive to Muslims and/or religion based discriminant?

Stay away from confusion you will be saved

To all my brothers and sisters who are cursing Shaykh for this video, please seek some knowledge and sense. There were no banks in the era of Mohammad (pbuh). The ruling against interest was from an entirely different perspective, just to protect poor from rich, if the poor borrows some money, spends it and then has nothing to payback. But if a commodity is involved, this condition does not hold anymore. Here is my point: I pay house rent 1000 euros/month. If I live in my flat for 25 years, I would end up with zero savings. But the bank offers me a possibility to buy same house and payback 200k loan over 25 yrs. In return, bank charges me 1% interest (as a profit for the time value of money). After 25 years, the house would be mine and I can sell it to get some savings. Why would be Islam against this? Most of your comments below are nonsensical and a proof of misinterpreted following of an islamic ruling. I pray Allah to guide me if I am wrong. This is just my kind analysis. I think Shaykh is right in his research and opinion.

Very interesting. I appreciated his thoughtful answer.

Is this Hiyal ? A Hanafi methodology in Ushul Fiqh. We need more Hanafi scholars in public. Very interesting discussion

In the Hanafi madhab, it is allowed in some circumstances to find loopholes in fiqh to bring ease to the masses. The loophole, which is not the same thing as dispensation, means one can find a way to follow the Letter of the Law but forgo the Spirit of the Law. This is exactly the case with Islamic Financing. When Mufti Taqi Usmani permitted a loophole for financing (Murabaha, where the financier buys for the client and then sells at a higher price) in the 70's, he did it to bring TEMPORARY ease for the masses hoping that in the future, new financial developments in the Muslim lands would render this mechanism unnecessary. This obviously didn't happen. By the looks of this video, the concept Shaykh Atabek is using is very similar to Murabaha in Islamic Financing, so the loophole concept could also apply here. He uses Tawkeel and Murabaha as mechanisms to mask what is essentially Riba. From what I gather, the whole idea behind the video is that Mortgage from non-Islamic Banks is no different from the way a lot of Islamic Banks do it as they both use Tawkeel as a mechanism. While the mechanism slightly varies among Islamic Banks (and probably non-Islamic Banks as well), the Spirit of the Law is most closely followed when the risk is distributed among both parties. For example, the bank can end up buying a house, but the client can then reject the offer if he doesn't agree to the bank's higher selling price. This is what I understand from some knowledge I got from Ustad Salman Younis' courses on Seekers Hub. Please don't take what I have said to be a fatwa one way or another. I wrote this only to bring perspective on the issue. Everything good that I have said is from Allah, and everything else is from me. May Allah forgive us and grant us better understanding of the deen. Ameen.

I am a muslim in the Fintech industry however not an islamic scholar (Just holding on to the 5 pillars of Islam) To me firstly, this Shaykh is just misinformed (by him saying that in his 2/3 months research, he had a chat with 1 banker) on the actual fundamentals and principles of how a bank work. Secondly in order for the bank to lend for the mortgage, the bank has to borrow from the central bank which is based on interest rates i.e riba (which is inter dependent on the US federal reserve interest rates as that’s how the fiat money system works which is based on debt financing and there again riba on top of riba) Thirdly, interest rates are not fixed throughout your mortgage tenure say 10-20 years which then translates back to an unspecified sum owing to the bank at the end of the loan tenure. Fourthly a muslim can’t in anyway make a decision without bringing our islamic beliefs and principle in order for us to make a conclusion. This is what is destroying the ummah as everyone act based on their own logical understanding based on the rule of law of the land as rules made by man are undoubtedly for a gain of only one particular party unlike rules and principles in the Quran which shows consistency, fairness and a far more superior fundamentals then any rules created by men. Here’s my personal opinion, mortgage is haram due to its coexistence with interest/riba. (Look through how the monetary system operate right from the 1970s in order to have a clearer understanding of how a bank works) Anyone who has made the final payment of their mortgage will also tell you that that was the biggest burden/suffering they have been carrying for a long time, even just a simple understanding from a laymen will agree that mortgage is the biggest suffering mankind is facing now hence it is definitely not following Islamic fundamentals as there is no verse in the Quran that allows suffering to mankind. With this, it is just plain simple that the mortgage we have now are not in accordance with Islam and therefore prohibited. The question is, what choice do we 1.6 billion muslims have in terms of getting a home for our family which to begin with is just a basic need? If there isn’t any other option or a strong opposition from the Ulama on riba then we can safely say there are 3 segments of muslim globally which are, those involved in riba and carry that sin with them, those who will keep on renting and those who are well off who can purchase a house without needing a mortgage from the bank. Allah hualam..

What he is saying makes perfect sense. Subhanallah!

I dont understand why this matter of mortgage is still so difficult to understand for a big majority of muslims and almost all of them still buy the houses on mortgages. My understanding of the issue is very simple, Islam came to this world to fight off injustice (Zulm) and riba was a biggest zulm where people would never be able to pay off the principal although they were paying much more than the principal. In today's world it would be credit card debt, if you pay minimum then it will take you years to pay off the debt whereas you end up paying many times more than you owe. But with the house or car loan there is a fixed duration and at the end of that duration the car or house belongs to the customer. Then where is the Zulm (injustice) to that which Islam came to fight off. Just compare this to the situation when you rent for 20+ years and at the end of 20+ year you own nothing. I think this is just misunderstanding that stem from the word interest that is used for both profit and riba. Jazakallah khair to the Sheikh for beautifully explaining the difference and making the life easy (and guilt free) for people living on the west who have no option but to get the mortgage if they want to own the home.

As a student of finance and a muslim I disagree with the logic of the speaker..Money that gives birth to money is Riba giving time a value which is represented in the excess..What these scholars are doing is like the jews who laid the fishing nets on the Sabbath and then collect the fish after the Sabbath and say they have not worked on the Sabbath.. I am disappointed by this channel which seems to be attempting to justify that which is impermissible as permissible based on a convoluted basis..Shame on all of you!

Very well and logically explained by the respected scholar , No need to bash him guys if u disagree with his explanation . If You don't like it go keep renting or find another way , khalaaas 👏🏼

As a person who has a mortgage. He makes no sense to me. If you purchase a house you automatically get it at some interest rate. So if interest is the issue you have it from day one. Another issue with banks is compounded interest. Anytime you miss even one day of a payment that missed payment is subject to compound interest until that payment is made. So everyday the payment grows. So a 500 payment can turn into a 1000 payment easily. Another issue is say you buy a house for 150,00. By the end of 30years you would have paid back 30,000+ unless you make extra payments to help reduce the interest. But the problem is that from the day you sign for the loan you are in a race against interest. Which is the problem. I got my loan with my uncle before I was Muslim and he lives in the house but my name is still on the mortgage. If getting out of the loan wouldn't make my uncle homeless I would totally get out of it immediately. Do not get a mortgage people!

Sound interesting understanding!

A mortgage is a debt contract. Moreover, after this the whole world is going into digital/some form of crypto. Those types of currencies are not physical. But still if u pay more than you borrowed, physical or not, and then amount goes up due to time, the isn’t it still riba’? Wallaahua’lam

I went to a talk over the christmas break about riba from a sheikh who teaches in the masjid Al haram. He said that due to riba being a major sin you can not use the fact that a house is a necessity in order to get a mortgage. Riba is a major sin and it has been reported that the Prophet Muhammad (pbuh) curses the person that deals in riba or writes a contract of riba and it has also been reported that the Prophet even went to the level of saying that dealing with riba is worse then sleeping with your own mother. SubhanAllah may Allah protect the ummah. This video seems as though he is going the long way round to make something haram, halal. I am not saying I am a sheikh just giving my point of view. Allah knows best.

I believe what he’s trying to explain is that when you purchase a home in installments it’s possible to make multiple payment modules based upon how long you take to pay this off. If 5 year then amount is 200k If 10 years then amount will be 250k Etc up to if you take 30 yrs then the amount will be 400k. The mechanism by which the payments will increase is a mathematical equation in which these payments are increasing is called “interest” by the banks. But is this mechanism valid? Is this type of trade valid where the price increases based off how long you take to pay it off? Then second is permissible and the first is permissible but the word “interest” throws off many. Im still not sure if this is valid because there is a hadith multiple contracts within one contract. But we have precedence in islam of this module being used. If someone does service for you then you increase the payment based on how fast they do the job. The more time they take the less the payment gets. And the mechanism put in play to increase the home payments based on how long you take is put in place because what a dollar is worth today might not what it’s worth 30 yrs from now. This is based upon how well the economy of that land is doing. Thats why there is a refinance option. Saying the mechanism put in place which increases these payments based on how long i take to pay this off was based on the conditions of the economy at that time. Now it seems the conditions are better and what i will end up paying in 30 yrs is too much. Its not justifiable and i am at a clear disadvantage. To remove that disadvantage the bank can refinance your contract where they only adjust that variable (known as interest rate in their terms) so what i end of paying is fair for both sides. Now when the interest rate increases in an economy the bank also has the right to refinance your home to maximize their benefit BUT they never do that why? Thats because the mechanism put in place is not to put you at a loss rather to protect themselves and even with a low interest rate they are protected because they will essentially always make more than the flat rate of the house they paid for when you financed it through them. Logically seems fair. Also the word loan or debt mentioned on the contract is simply means money you owe them for this property. It does not mean loan in the islamic sense which is money for nothing, you do whatever you want with that money and you return back more than taken amount if you are late from the consensually agreed upon date.

May Allah guide us and the sheikh onto the straight path. Not here to talk ill about anyone, let alone the sheikh. That being said, Riba is not only between You and the bank (even though that is enough to draw a conclusion). When you go to a bank, and ask them to buy a house on your behalf, with the clear intention to pay back overtime with a rate is a DEBT, otherwise they could never be repayment plan. Even more, the bank in the background, trades the whole projected value (like 300K expected value of the house in 20 years aka Collateral Debt Obligation = Loan + Projected interest) to another organization, which is a bigger Riba that originated from your action. It is Riba because they exchange cash for an expected amount of money. Examining the back contract is better than talking to a bank CEO / marketer etc ... I understand lot of our brothers and sisters got into Riba (May Allah give us the strength not to and accept our tawba for those who did), but we should not, in any circumstances look for ways to justify the banking and mortgage system. May Allah reward all the Sheikh for the good we getting from them, and forgive them all for their shortcomings and ours.

I'm just wondering how would any loan be transacted under Islamic law? If you loan me 100k dollars today and I pay you back over 20 years the same 100k, what's in it for you? Your money would have depreciated enormously.

I can understand his point of view. With todays rent prices, paying rent to greedy landlords is more oppressive than buying a house with a mortgage too. May Allah swt guide us all.

Don’t follow your desires and let Shayan make a clear sin (mortgage) fair seeming. This opinion is faulty, ignore it. Buy the houses cash or rent forever. There is no in between. Simple. Halal.

Unfortunately Muslim are far behind understanding the term Riba, which is prohibited. Riba was a (bad) custom of interest charging on borrowing money which pauperized the people. So if you want to know riba, you have learn Social history. Main characteristics of riba are 1. It is informal borrowing. 2. Interest rate was too high which pauperizes th borrower. So as long as interest rate is tolerable, it is not riba. In fact in holy quran there’s an instruction also in this regard,that is, the total repayment must not be more than double than the borrowed money. May allah help us understand the truth.

We are but *Travellers* on a *Journey* on this *Dunya* But most want to live like Pharoah ........ And ..... build their Houses on interest Do you know what is the ........ House .....of Pharaoh It is ........... A ........House .. Built on Interest, ..Total unjust slavery 🤔🤔

An advise to all brothers/sisters. Please disable comments for any future videos to eliminate time-wasting, destructive comments among each other. Brothers/sisters, when will you wake up? When will you stop attacking one another? How many times are you going to keep falling into your greatest enemy's trap, Satan? If you have something good to say, say it but if you have nothing good to say, be silent. We should be united as 1 PEOPLE.

He said Bank buys for 10,000 and sells you at 20,000 over a period. If this was the case then it is ok since you are paying the price for a product that has no Gharar/doubt. However in reality bank charges you variable interest which can change upwards or downwards hence the Gharar comes back in. In addition there are penalties if you want to pay early or you miss a payment. Regarding the government as a regulator comment to take care of banking: Government runs its own bank i.e. Reserve or Federal Bank so they are in on it, if not then you will have to ask the question do banks have any lobby powers over legilsators?

If a house cost £300k and your conditioned to pay back within 15years with fixed % percentage. In other words: the end value or Intrest are known beforehand. I.e £350k. Is this acceptable?

I can rent my home for $1,,400 for 15 years and walk away with nothing or pay mortgage at $1,100 for 15 years and own my property worth 150k. Sometimes.you have to do what’s best for your family. Allah knows best.

The way he explained actually makes sense. And with knowledge. I felt deep down the interest by a loan shark to someone for monetary loan had to be different to a modern day mortgage system but just didn't have the knowledge. It's brave brother. I hope people deal with this intellectualy and not emotionally

Seeing the comments sadden me, how come a muslim still have "I'm the righteous one" mentality?

just looking for some answere .suppose if the house got burned down but my mortgage payments is incomplete.. will i be released of that mortgage ? or they will oppress me .. then will i be excused by saying u bought me the house n i should pay u back 4 ur house..since ur house is gone then its ur loss .. y should i still pay u..? or do both party spilts the loss? plz dnt bring up insurance cuz its very controversial ..

Even the current monetary system (Fiat Currency) is haraam, while we are debating mortgages.. very sad... please read "A Program for Monetary Reform" written in 1939... only an intrinsic value currency is allowed in Islam..... try to understand the big picture

With all due respect to everyone, I find that there are few issues with his explanation. 1. The Shaykh mentioned that he has spoken to a Bank Officer (I assume it was Sales guy) and applied Hanafi fiqh against how the Officer explained to him. Shouldn't he be looking at an existing mortgage contract paper and validate it against Islamic jurisprudence? At the end of the day, what is written in the paper is what matters, not what a Bank Officer/ Sales people tells. 2. He also mentioned that if there is no debt, then there is no interest. I dont think it is accurate. There is a famous hadith about exchanging inferior dates for superior dates and Prophet Muhammad (may Allah bless him and grant him peace) told that this transaction was actually riba. 3. When someone defaults in paying an installment, every traditional Bank charges additional interest/money for it. The Shaykh hasnt mentioned anything about it.

What if you borrow money to a bank at the same rate of inflation? Would that be considered as money creation?

He lost me in the beginning when he said oh you have to go in without any preprogrammed mindset. Lol we ARE preprogrammed, there are certain things that are FIXED. You don't change that. Flipping reformists.

let's go through his example of buying chicken.. he is saying that 1st person is giving money to second one to buy chicken..now let's come to the context of mortgage..does any bank come to you and tell you take this money and buy a house.. does it makes any sense... the bank will give money to buy home..if I go to the bank... otherwise which bank is behind you and tell that here is the money go get a house...Another thing... quran is not based on Hanafi fiqh...Hanafi fiqh is a school of thought....May Allah guide us...

Interest (riba) is on cash loan only Charging Extra money on cash loan is haram No doubt about it. Only the principal amount has to be returned. So if I give a person 20k dollars cash for 5 years, I can only ask for the principal to be returned ie 20k On the other hand if I give a 20k dollar car on loan to a person for 5 years, then in addition to my demand that the car be returned, I can ask monthly rent. This extra money is not interest. The person renting can show his desire to buy the car and I will say until you pay the 20 K, keep on paying the rent Thus in the mortgage, the bank buys car for you and ask you to pay rent till the principal is payed It is not interest even though the bank may call is interest It’s rent to own

Syaikh, is the bank interest riba, especially for mortgage, if it's riba then how about the profit sharing calculation in the Islamic bank which in the result of similar calculation as an interest?

The bank never gives you the money, so you can't do what you want with the money. The bank is not buying the house and reselling it to you. The only closing of property is the one under your name. If I buy the home with my money and all the legal papers are in my name, then I can sell it to you for whatever price we agree. These banks not doing this.

Conclusion: riba is bussines. You can fool someone but you cant fool allah.

From Abu Hurayrah : The Prophet, , said: "There will certainly come a time for mankind when everyone will take riba and if he does not do so, its dust will reach him." (Abu Dawud, Kitab al-Buyu', Bab fi ijtinabi al-shubuhat; also in Ibn Majah)

What about negative equity? When the value of the house falls below the price you we're loaned to buy it? Will the bank say don't worry about it? Or will it come after the money?

Can I get a pdf or a doc of the said topic with complete facts....please.. I kind of in a doubtful situation... Please kindly consider.

When you sign a mortgage contract bank includes in it a late fee for nonpayment on time, besides an interest. If you’ve skipped 2-3 months payments you have pay a late fee. Isn’t that riba, sheikh?

This is very interesting

I’d rather be homeless here then be victim of hell fire. Usury is prohibited period.

Whether you disagree or agree you need to be able to support your case and not just accept an opinion without having a justification for why because Allah will ask you and you alone with regards to your decision and how you made it. You can blame others but this wouldn't be sufficient as we all know because those destined for jahhnam will all say that such and such led me astray but Allah will ask did I not make it clear? If you can't justify your acceptance of an opinion or refute it then how will you be able to stand in the court of Allah. Muslim (1598) narrated that Jaabir said: The Messenger of Allah (blessings and peace of Allah be upon him) cursed the one who consumes riba and the one who pays it, the one who writes it down and the two who witness it, and he said: they are all the same. Shaykh Ibn ‘Uthaymeen (may Allah have mercy on him) said: That is, (they are all the same) in terms of being cursed, because they co-operated in that. Atabek is saying that the contract can be disregarded because of technicality however the hadith clearly states riba in the form of a contract. Also there is no such thing as coming up with a fatwa without have preconceived notions and going in to a topic with a neutral mind when a muslim persons life and all decisions are based on the quran and sunnah. His other point that the bank is buying the property for you and that you don't have a choice with what to do with the money that is given to you for the home is absolutely false. You can buy the home with a mortgage and sell it any time at a higher price and repay the bank with interest whilst retaining profits which is usury in its purest form. It is greed which caused our father Adam to be brought down from Jannah as shaytan whispered that the only tree which they couldn't eat from has something special about it. Adam had everything he needed in jannah but the greed of wanting more meant he gave in to temptation. Lets not let our greed take us down a path which leads to our demise. With regards to his point on tawkeel, they are two separate contracts and cannot be passed on. The example he provided was that 10,000 owed to him by John can be used to repay the money he owes. However it is not the responsibility of the person who gave him the money to chase it from John. It is his own responsibility to get the money from John to repay the money owed because they are two separate contracts. If however you appoint someone to collect money for you outside of any other financial arrangement you have with them then that's not a problem but you can't appoint them to collect the money that you owe them and diminish your responsibility to them. I request this channel to remove the video as it's spreading corruption amongst the Muslims by making permissible what has clearly been made haram. Surah al-Baqarah, verses 275 “Those who benefit from interest shall be raised like those who have been driven to madness by the touch of the Devil; this is because they say: "Trade is like interest" while God has permitted trade and forbidden interest. Hence those who have received the admonition from their Lord and desist, may keep their previous gains, their case being entrusted to God; but those who revert shall be the inhabitants of the fire and abide therein forever.” (275) “0, believers, fear Allah, and give up what is still due to you from the interest (usury), if you are true believers.” (278) “If you do not do so, then take notice of war from Allah and His Messenger. But, if you repent, you can have your principal. Neither should you commit injustice nor should you be subjected to it.” (279)

His complicated matters I've seeing no answer

Thank you for taking your time to explain.. but the answer wasn't clear and easy to understand...

To accept or reject his point of view we must know islamic finance..... else we too are beating around the bush. May Allah guide us....

What about fluctuating interest rates? In that case, the final purchase price of the house is unknown...

I think he means he don't borrow cash physically he is having a product brought for him and he pays extra on the value of the house.

Maasha Allah! Beautifully explained, so refreshing to note the learned Shaikhs research. His approach is in line with the hadith of Prophet Muhammad, (may peace & blessings be upon him) when he said "Give glad tidings, Do not drive people away, Make matters easy, do not make matters difficult".

There's a difference between usury or ribaa and interact Mortgage a house to take a loan and taking a housing loan There's no sin in taking a loan to buy a house. Thus ie not usury

He is saying the bank gives you money in your account with instructions to find a house with their money, not your money. You then purchase the house and you pay them back the money for the house. So he is saying the money is not being lent directly to you on interest, but someone is buying you something with expectations you will pay them interest on that. It’s basically deluding yourself, and the vast majority of scholars will never accept this reasoning. It’s completely flawed.

Sheik, may Allah give you knowledge about the deen.

research needs a pre assumption it's called the hypothesis which is then proved right or wrong. So please spread good knowledge and then start discussing.

If you want to do haram then do it in your own terms. Don’t try to misinterpret what Allah already said prohibited.

Riba will only make the rich wealthier because it's making money from money with absolutely no risk to the person giving the loan. The poor person that suffers is the one who's paying back more money then he bargained for. It's that simple it's a bad system that feeds of the less unfortunate. This is why it's Haram. Investment in the other hand is allowed why? Because the risk is to both parties and not just feeding the wealthy. How Allah has rightly so forbidden such a dishonest system. We as Muslims should stay away from this and try our best to be as close to our wonderful ❤️ religion as we can. May Allah make it easy for all of us ameen

I am not sure abt the system of banks but if the bank is buying a house for u and selling it to u in high price then it is totally acceptable. If banks allows i to pay in installments that is also okay. Thats what i understood.

It's my suggestion to the RU-vidr. As I am following Imam Shafi'e principles... I would like to hear the same topic from Imam Shafi'e perspective..

Out of all this confusion I wish Islamic financing go easier on Muslims instead of asking 30% down and so many confusing terms and conditions

The halal is clear and the haram is clear and in between is the doubtful. Those who leave the doubtful have saved their religion.

Could we improve the quality of the discussion here? Atabek isn't saying that riba is permissible. He's saying that because a mortgage borrower isn't free to do what they choose with their money, it isn't a 'qard' (loan) according to the Hanafi school. Then he says if it's not a qard, then there can't be riba. He repeatedly makes the point that words and labels are irrelevant - it's the underlying legal reality that matters. Could we debate that, rather than something that isn't the point he's making?

Sheikh Atabek helped me regain my faith in Islam. I really thought I was crazy my whole life because so many general Islam practices simply made no sense to me, even when the reason was explained

AssalaamoAlaikum wrwb, with all due respect, but is He saying that everything is halal then, isn’t he? I am not a scholar but I am not sure this is accurate info.

Shyakh, did you also factor in the idea of 'Time value of money' due to risks and inflation most importantly? I mean the inflation rate is scary so how can there ever really be interest? Its just a loss of buying power.