Search by any: Ethyl AlcoholInsuranceDepressionAblution. Mortgage to Buy House in America Date: 16-1-2019. Nowadays, banking system has become a part of our lives, including for Muslims in Islamic countries. It is a internationally recognized business, open to all on equal footing and apparently, no one is discriminated. The argument uses the wording of the above Ayah “doubled and multiplied” to assert that only those transactions with exorbitant interest are prohibited and as long as the interest rate is not so excessive, it will be permissible. However, it has the … Being a muslim, I understand that mortgage is not allowed because of interest (Ribā). However, this transaction did not use to be a loan transaction, rather a deferred sale transaction. c. This argument rests on the assumption that there were no Productive Loans in vogue at the time of Rasulullah salallāhu ‘alayhi wasallam. “Listen, every amount of interest that was due in Jahiliyya is now declared void for you in its entirety. Mufti Faisal bin Abdul Hameed al-Mahmudi Each lender will follow roughly the same steps when assessing your application: 1) Financial Information: The lender will ask you for much of the same information as it would when applying for Fairway Mortgage … This raised the concern and contention among the early jurists. We structured the product this way in order to obtain the best pricing for clients in compliance with Canadian … Get in touch with an Islamic financial advisor before you consider any investment. The Non-Jewish Origins of The Sephardic Jews, Exercise: first line of defense when dealing with stress, Excuse Me, But Israel Has No Right To Exist, Why God’s (Allah’s) Book Cannot Contain Error. Zero Mortgage in 2020 launched Zero Auto and CALM Cashflow. Zero Mortgage has secured a leading international group of scholoars to sign our fatwa who collectively sit on over 50 Islamic Banks all over the world. If you are looking for Halal Mortgage in Canada, you are at the right place. I live in Canada and here the facility has been provided by the government to all residents for buying houses on mortgage (interest bearing loan). 1) The contract must be Sharī῾ah Compliant. Call us first! There are two basic works of Mufti Taqi Saheb in which he has laid down the theoretical workings of a Sharī῾ah Compliant model for Islamic Finance. They should be involved in drawing up the scheme and being confident of the scheme being 100% correct. It does not seems rational for one who cannot afford to purchase a house to enter into an interest based transaction to secure one. Intrinsically both these conditions are same, yet no one has ever claimed that profit charged on commodities to the poor is harām and impermissible. The above is a clear example of commercial loan. 5) The Ulama on board should be independent and free to raise any Sharī῾ah related objections against the Scheme. This brings us to the third aspect of your question. They should also supervise the Sharī῾ah implementation of the scheme. I had a house with two mortgages … Mortgage lenders in Canada cover up to 80% of the purchase price of a property for Canadian residents. Dar al-Ifta al Misriyyah is considered among the pioneering foundations for fatwa in the Islamic world.It has been the premier institute to represent Islam and the international flagship for Islamic legal … The rulings given hereunder are specifically based on the question posed and should be read in conjunction with the question. What English translation of the Qur’an do you recommend? The prohibition in Qur’ānic verses is generic encompassing all its forms. Moreover, in these productive loans, the loanee are primarily rich who face no exploitation or injustice from the interest imposed on them. A Question about North America Fiqh Council`s FATAWA on HOUSE PURCHASE using MORTGAGE وَثَلاَثٌ، وَدِدْتُ أَنَّ رَسُولَ اللَّهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ لَمْ يُفَارِقْنَا حَتَّى يَعْهَدَ إِلَيْنَا عَهْدًا:الجَدُّ، وَالكَلاَلَةُ، وَأَبْوَابٌ مِنْ أَبْوَابِ الرِّبَا ” قَالَ: قُلْتُ يَا أَبَا عَمْرٍو، فَشَيْءٌ يُصْنَعُ بِالسِّنْدِ مِنَ الأُرْزِ؟ قَالَ: ” ذَاكَ لَمْ يَكُنْ عَلَى عَهْدِ النَّبِيِّ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ – أَوْ قَالَ: – عَلَى عَهْدِ عُمَرَ ” وَقَالَ حَجَّاجٌ: عَنْ حَمَّادٍ، عَنْ أَبِي حَيَّانَ: «مَكَانَ العِنَبِ الزَّبِيبَ» (صحيح البخاري (7/ 106) دار طوق النجاة), [6]  عَبْدُ الرَّزَّاقِ قَالَ: أَخْبَرَنَا ابْنُ عُيَيْنَةَ، عَنْ عَبْدِ الرَّحْمَنِ بْنِ عَبْدِ اللَّهِ، عَنِ الْقَاسِمِ بْنِ مُحَمَّدٍ قَالَ: قَالَ عُمَرُ بْنُ الْخَطَّابِ: ” إِنَّكُمْ تَزْعُمُونَ أَنَّا لَا نَعْلَمُ أَبْوَابَ الرِّبَا، وَلَأَنْ أَكُونَ أَعْلَمُهَا أَحَبَّ إِلَيَّ مِنْ أَنْ يَكُونَ لِي مِثْلُ مِصْرَ وَكُوَرِهَا، وَمِنَ الْأُمُورِ أُمُورٌ لَا يَكُنَّ يُخْفَيْنَ عَلَى أَحَدٍ: هُوَ أَنْ يَبْتَاعَ الذَّهَبَ بِالْوَرِقِ نَسِيئًا، وَأَنْ يَبْتَاعَ الثَّمَرَةَ وَهِيَ مُعَصْفَرَةٌ لَمْ تَطِبْ، وَأَنْ يُسْلِمَ فِي سِنٍّ ” (مصنف عبد الرزاق الصنعاني (8/ 26) المكتب الإسلامي), [7]  حَدَّثَنَا أَبُو بَكْرِ بْنُ أَبِي شَيْبَةَ، حَدَّثَنَا وَكِيعٌ، حَدَّثَنَا إِسْمَاعِيلُ بْنُ مُسْلِمٍ الْعَبْدِيُّ، حَدَّثَنَا أَبُو الْمُتَوَكِّلِ النَّاجِيُّ، عَنْ أَبِي سَعِيدٍ الْخُدْرِيِّ، قَالَ: قَالَ رَسُولُ اللهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ: «الذَّهَبُ بِالذَّهَبِ، وَالْفِضَّةُ بِالْفِضَّةِ، وَالْبُرُّ بِالْبُرِّ، وَالشَّعِيرُ بِالشَّعِيرِ، وَالتَّمْرُ بِالتَّمْرِ، وَالْمِلْحُ بِالْمِلْحِ، مِثْلًا بِمِثْلٍ، يَدًا بِيَدٍ، فَمَنْ زَادَ، أَوِ اسْتَزَادَ، فَقَدْ أَرْبَى، الْآخِذُ وَالْمُعْطِي فِيهِ سَوَاءٌ» (صحيح مسلم (3/ 1211) دار إحياء التراث العربي), [8] Read the entire “The Text of the Historic Judgment on Interest” at http://daruliftaa.net/Book/histinterest.html, [9]  و يظهر مما ذكره اهل الاخبار و اوردوه عن قوافل مكة ان مال القافلة لم يكن مال رجل واحد ، أو أسرة معينة بل كان يخض تجارا من أسر مختلفة ، و أفرادا وجد عندهم المال ، أو اقتر ضوه من غيرهم فرموه فى رأس مال القافة أملا فى ربح كبير, [10]  كانت بنو عمرو بن عُمير بن عوف يأخذون الرِّبا من بني المغيرة، وكانت بنو المغيرة يُرْبون لهم في الجاهلية(تفسير الطبري (6/ 23) مؤسسة الرسالة), [11] http://daruliftaa.net/Book/histinterest/Riba-and-Doctrine-of-Necessity.html. http://daruliftaa.net/Book/histinterest.html, http://daruliftaa.net/Book/histinterest/Riba-and-Doctrine-of-Necessity.html, http://www.theglobeandmail.com/report-on-business/top-business-stories/housing-buyrent-ratio-shows-real-estate-vulnerable/article1761838/, http://www.askimam.org/fatwa/fatwa.php?askid=174bb46184804c5601c95eb08ca1f87e, http://www.askimam.org/fatwa/fatwa.php?askid=e5f4d14e0a471b75e73010b38a3e2c5b. The prohibition of any amount of interest in the commercial or personal nature, remains intact, affirmed and well grounded in light of Sharī῾ah. Hence, depriving anyone of the means to own a house is depriving him of a basic necessity. “In Canada, a house may make a great long-term home, but the buy/rent ratio suggests Canadian real is vulnerable to a hike in mortgage rates.” [12] Although this may not be the general … Dr Joseph Lumbard Answers. Paying mortgage on foreclosed house Date: 9-7-2016. Treating Your Wife: Which Example Do You Follow? The Fatwa on conventional mortgage if Islamic finance is not available is correct and adopted by the second international conference on Fiqh held in Detroit in the fall of 1999. Our religion allows for ijtehad on all important matters including and mortgage is surely one of the very important issues in western countries, USA and Canada. The Fatwa on conventional mortgage if Islamic finance is not available is correct and adopted by the second international conference on Fiqh held in Detroit in the fall of 1999. Answered by: Dr. Monzer Kahf. b. Buying and Keeping Stuffed Animals and Birds, 4 Games and Activities Toddlers and Pre-Schoolers Love, Andalusia: Bridge of Muslim Civilization to Europe, Islamic Banking and Finance [2/5]: Six Key Islamic Banking Principles. Homosexuality: How Should Muslims Respond? To substantiate this we request you to do a quick search on rent/own ratios. You may download a copy of the most recent Fatwa issued by Mufti Muneer Akhoon by selecting for … There are ample examples in historical records enumerating productive loans. Mufti Ebrahim Desai The client pays the amount which he can afford whilst the institution will purchase the remaining portion. If not, then how should we respond to anyone who greets us? the Fatwa Permitting Interest-Based Mortgages for Buying Homes in Western Societies By Dr. Salah al-Sawi Translation: Usama Hasan Version 1.0 29th Rabi’ al-Awwal, 1422 / 21st June, 2001 A Polite Reconsideration of the Fatwa Permitting Mortgages … Can Muslims in the west buy a house using conventional bank mortgages? Therefore, every bank contract will have to be closely studied by the Scholars in order to issue the relevant ruling of Sharī῾ah. Not everyone has huge amount of money to buy the house on cash payment. Then on the maturity date they demanded the debtor to pay the principal. This is not something new in Canada, the leading Halal financing company in the USA, Guidance Residential, in their fatwa allow clients to use the term interest in documentation due to USA law. This process continues until the client purchases the entire property reducing the institutions ownership to 0%. Mufti Taqi Uthmani Saheb has detailed out a considerable portion of his book, “Introduction to Islamic Finance” to such financial schemes. Is it haram? The Profound Wisdom of Prophet Muhammad Regarding the Lunar Dates and the Unity of the Muslims, Medieval Islamic Hospitals & Medical Schools, Ulama’s Fatwa on Boycotting Israeli Products, My Years of Search: Shia-Sunni Dilemma (Part 8), Self- Development: Prayers As Productive Habit, Balance and Moderation of the Islamic Civilization. This is the fundamental requirement in Sharī῾ah Compliance and probably the most difficult. Argument 4: The Ribā in question is not interest rather usury (exorbitant interest rates). Accordingly, the rent will also be reduced. Mufti Ebrahim Desai lays down some basic guidelines about these Advisory bodies in one of his answers as follows: “In order for a house finance scheme to be Sharī῾ah Compliant the following is essential. I have a question about mortgage. “The tribe of Banu Amr used to charge interest from the tribe of Banu al-Mughirah and Banu al-Mughirah used to pay them interest.” (Tafsir Ibn Jarir Tabari 6/23)[10]. “In Canada, a house may make a great long-term home, but the buy/rent ratio suggests Canadian real is vulnerable to a hike in mortgage rates.” [12]. This is a fatal flaw of this argument. It is hoped that through individuals with vigor and zeal, such as yourself for a Sharī῾ah Compliant solution to the modern day Economic dilemmas, we can steer the conventional economic trends into right direction, inshā’Allah. I suggest that you should check first for Islamic finance, there are several companies which offer it in Canada and US. And the first liability of interest declared to be void is the interest of Abbas ibn Abd-ul-Muttalib which is hereby declared void in its entirety.”. 2. “And the Ribā which was known to and practiced by the Arabs was that they used to advance loan in the form of Dirham (silver coin) or Dinar (gold coin) for a certain term with an agreed increase on the amount of the principal advanced.” (Ahkām al Qur’ān lil Jassas 2/184) [2]. This was the doubt which Sayiduna Umar radiallahu anhu had wished that Rasulullah salallāhu ‘alayhi wasallam would have cleared before his demise. Whoever pays more or demands more (on either side) indulges in Ribā.” (Sahih Muslim #1584 )[7]. “The Ribā of Jahiliyya was a transaction whereby a person used to sell a commodity for a price payable at a future specific date, thereafter when the date of payment came and the buyer was not able to pay, the seller used to increase the amount due and give him more time.” (Tafsīr Tabarī 6/8) [4], Argument 2: The concept of Ribā remained ambiguous till the demise of Rasulullah salallāhu ‘alayhi wasallam. In fact, … However in this case, this concession will have to be purely voluntary and not an obligation. SUBMIT A QUESTION. Definition of interest (Ribā) needs to be revisited. Zero Mortgage offers Halal Mortgage with no fees or charges at a competitive rate. Subject: Buying House with Mortgage. As long as the intrinsic transaction is correct and valid, the profit or fee charged on it is completely permissible. There are numerous errors which are common in the above-mentioned transaction. We present a brief summary of these arguments. a. Ribā, its definition and correct understanding in the light of Qur’ān and Sunnah. www.daruliftaa.net, [1] أَمَّا رِبَا النَّسِيئَةِ فَهُوَ الْأَمْرُ الَّذِي كَانَ مَشْهُورًا مُتَعَارَفًا فِي الْجَاهِلِيَّةِ، وَذَلِكَ أَنَّهُمْ كَانُوا يَدْفَعُونَ الْمَالَ عَلَى أَنْ يَأْخُذُوا كُلَّ شَهْرٍ قَدْرًا مُعَيَّنًا، وَيَكُونُ رَأْسُ الْمَالِ بَاقِيًا، ثُمَّ إِذَا حَلَّ الدَّيْنُ طَالَبُوا الْمَدْيُونَ بِرَأْسِ الْمَالِ، فَإِنْ تَعَذَّرَ عَلَيْهِ الْأَدَاءُ زَادُوا فِي الْحَقِّ وَالْأَجَلِ، فَهَذَا هُوَ الرِّبَا الَّذِي كَانُوا فِي الْجَاهِلِيَّةِ يَتَعَامَلُونَ بِهِ. As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh. No doubt that Islam relaxes the rules for the followers in time of necessity, but we need to make sure that the “need” is correctly identified. every three months the client will buy one unit). We hope that the above summary of pertinent points sufficiently explains the confusions and doubts about use of interest in Banking today. 2. While we may direct you to a particular theory, it may become futile without a suitable financier to carry it out and implement it in Sharī῾ah Compliant manner. after purchasing the first unit, the client will own 20% and the institutions portion will reduce to 80%). This is to say that the lender would not stipulate any increase in the principle at the time of advancing the loan, however, if the loan was not returned in time then the loanee will be given an option to either settle the debt, or pay additional on top of the principle. In such an instance they will not be forced to compromise due to unforeseen circumstances.”[14]. There must be no Islamic finance available for them. In fact, Islamic Finance has come a long way in devising suitable housing plans for those middle income sector. purchasing gold for silver on deferred payment basis.” (Musannaf Abdur Razzāq #14161)[6]. Yet another form of Ribā is what has been presented in the argument. Praise be to Allah. Mufti Taqi Uthmani mentions: “…before deciding an issue on the basis of necessity one must make sure that the necessity is real and not exaggerated by imaginary apprehensions and that the necessity cannot be met with by any other means than committing an impermissible act.”[11]. a. There is an urgent need of consensus of Islamic Scholars on this issue, particularly for the Muslims living in North America and Europe. Much of the concerns you have brought forth have been already dealt with by luminaries like Mufti Taqi Uthmani Saheb. We need to reach out and bring these solutions into reality. Muslims in Calgary site bears no responsibility to any party who may or may not act on this answer. European Fatwa Council Mortgage Applying for a home equity loan is similar but easier than applying for a new mortgage. 3) The names of renowned Ulama being on the Sharī῾ah Board of different schemes is not sufficient. We are in receipt of your question. There is no specification presented in the verses that it is to be restricted to specific form and not the others. If he is forced to provide it free of cost or even at cost price, then he will not be able to run his business. Mufti Taqi Saheb sites this concept from the famous exegete Allamah Fakhrud dīn Rāzi rahmatullah alayh, “As for the Ribā An-Nasiah, it was a transaction well-known and recognized in the days of Jahiliyya i.e. For example, the client is only able to pay for 10% of the house; the financier will pay and take ownership of the remaining 90% of the house. The question however lingers as to why would one need to look into buying if one is not even able to do so. Ijara Community Development Corporation (Ijara CDC) is a non-profit corporation which structures Shariah compliant transactions for home buyers in the US and Canada. Muslims in Calgary site being hereby exempted from loss or damage howsoever caused. Luminaries like Mufti Taqi Uthmani have indeed provided us these viable alternatives, but their correct implementation and review remains a challenge. I have heard that but I’m not sure that there is a Fatwa for this issue. He cannot be forced to waive off his profit simply because the purchaser is poor. 2) Disposing…. In this way the institution will receive its money back by selling the units, in addition to receiving a profit through the periodical rent which the client pays. Our product is fully Shari’ah compliant and … Commuting is one of the bare necessities nowadays, but a person who is unable to even rent a vehicle, willingly or unwillingly lives his life by commuting through public transport, busses, tubes, or trams. This is forbidden in Sharī῾ah. Failure to abide by even one of these conditions will render the entire transaction impermissible. However, it has the following conditions: 1. The underlying spirit of the contract must be total Sharī῾ah Compliancy. Qardawi’s unconditional fatwa that allows a mortgage loan for one’s personal house, still, if one were to follow his fatwa, it would make more Islamic sense (since he calls it riba, but says that it is a necessity) than these contracts, which give the illusion of not being riba, … [12] http://www.theglobeandmail.com/report-on-business/top-business-stories/housing-buyrent-ratio-shows-real-estate-vulnerable/article1761838/ accessed April 2nd 2012. 3. Argument 3: The prohibition of Ribā is only limited to Consumption loans where the borrowers are poor people procuring loans to fulfill the daily expenses since it exploits their need. We welcome everyone to explore Islamic banking in Canada and our exceptional service. The Fatwa on the issue is: Muslims, living in the West, who need to buy houses to live in must first try to establish Islamic financing institutions and companies to fulfill their needs in accordance with the Shari'ah… Upon maturity, if the purchaser defaults on the payment then the seller would increase on the payment and thus collect interest money over and above the principle. Furthermore, the institutions portion of the house will be divided into units; each unit will represent 10% (thus, in this case, its portion will be divided into nine units). If one has a Sharī῾ah Compliant Contract but that is not correctly implemented, then the contract does not mean anything. Absolutely not! Our only contention is that this freedom and convenience should not come with the price of one’s Deen. A High Ratio Mortgage. The institution and client will agree on certain periods in which the client will buy a unit (e.g. Islamic Questions and Answers according to Shariah. The above argument chooses an isolated verse to justify an interpretation around it without looking at the different verses revealed in this context. What is desired for the promising sector of Islamic Finance in the near future is implementation of a thorough and independent Sharī῾ah Advisory. Two Muslim men — an activist turned Shariah mortgage seller and an Islamic cleric who sold his Islamic seal of approval on such mortgages — were acquitted on Friday of a … b. Question: I want to buy a house with mortgage. Following this logic, charging interest ought to be no different. If he could not pay, they would increase the term and the payable amount. A Conventional Mortgage in Canada. This is normally supported by the statement of Sayiduna ῾Umar radiallahu anhu that, “the verses of Ribā were among the “last verses of the Holy Qur’an and the Holy Prophet, Sall-Allahu alayhi wa sallam, passed away before he could explain them to us, therefore, avoid Ribā and everything which is doubtful.”. Mufti Ismail Moosa explains this model as follows: “A general method of house financing adopted by many financial homes is that of ‘DIMINISHING MUSHAARAKAH.’ In essence, this is a transaction where the financier (institution) purchases the house in partnership with the client. You are entitled only to your principal whereby neither you wrong nor be wronged. 6. It has benefits which are sought after so logically everyone would yearn to have this freedom. Is it permissible for us to greet “Happy New Year” to others? This is detailed in Tafsīr Tabari of Imān ibn Jarīr Tabarī as well as other tafsīrs[3]. Indeed, it is a convenience which one aspires for. that ye may (really) prosper.” [Āl-῾Imrān 3:130]. In such a case, entering into an interest based lease agreement to own a vehicle does not compute well with rational reasoning. Buying a house or apartment through mortgage Living in Canada is it halal to buy a house or apartment through mortgageJazakum Allah All perfect praise be to Allaah The Lord of the WorldsI … This condition is ignored by many of those who opt to carry out this transaction. A bread maker has to charge a profit on his product whether the purchaser is rich or poor. FATWA PROGRAM. Adding Interest Rate to the Car Price: OK? … If the facility of mortgage is not used, majority of Muslims can never have a house in North America (including USA and Canada). Moreover, once we read further into the opinions of the fuqahā’ among sahāba radiallahu anhum and Imams of the Fiqh (such as Imam Abu Hanifa and Imam Shafī῾ī rahimahumullah), we would realize that the grey areas in Ribā Fadhl were monumental in the difference of opinion between these fuqahā. I believe I have received interest money. Hence to assert that the prohibition could not have been targeting commercial loans is inconceivable in presence of numerous such examples which establish productive loans. This means that if we assume an interest bearing transaction to be permissible in which both parties are affluent, then a similar transaction where one of the transacting parties is poor will also have to be intrinsically permissible. 4. It is for families who require housing for themselves for reasons of security, education, neighborhood, financial, etc. Some are as follows…. In the Al Rayan Islamic mortgage for example, the freehold of the property is in the name of Al Rayan. We may face some hurdles and some difficulties in the beginning, but in the end perseverance will pay off. If Muhammad (PBUH) Were to Live in Europe: What Would Ramadan Be Like? Tags: Fatwa, islamic law, islamicfinance, islamicbanking, mortgage, riba We believe the antidote to all forms of hatred and extremism is an educated mind, a loving spirit and a giving soul. Manzil has a team of professionals on call to guide you. www.fatwa.ca, Checked and Approved by, The rulings given herein are based on the religious rulings of the Islamic Law and do not have any implications on the Law of the Country. Would Ribā Fadhl be limited to only the six things explicitly mentioned in the above hadīth or would it also flow into other commodities being traded. What is the fatwa on mortgage to buy house in america .. More. Your email refers: At the outset we wish place on record that we understand the need and concern with which you have approached us. These financial schemes are aimed directly at those who would look into securing a house through mortgage otherwise. No transaction in Islamic Law is governed by the financial position of either of the transacting parties. A clear reading of these narrations shows that it is understood that doubt shown by Sayiduna Umar radiallahu anhu is not about the Ribā which is mentioned in the Qur’ān (Ribā Nasī’ah) rather it refers to Ribā Fadhl. Is it permissible to buy one house for ourselves on mortgage? I raised the points above, because in your conclusion you talked about supporting Islamic banks, and in fact many Muslims choose to go for non Islamic mortgages! American Muslim Jurists have approved the Ijara system of financing for use in USA and Canada. This point becomes explicitly clear from the following verse, وَإِنْ تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَالِكُمْ, “And if you repent (from the practice of Ribā) then you are entitled to get back your principal.” [Al-Baqarah 2:279]. Owning a house is a “need” of every muslim. That means that, even excluding major factors such as taxes and maintenance, homeowners pay about twice what renters pay. (Tafsir Fakhrud din Razi 7/72)”[1]. Any deviation from the contract will impact negatively on the Sharī῾ah Compliancy of the deal. This tells us that the issue of charging profit in a sale, rests on the intrinsic correctness of a transaction. You must have money available to pay for the other 20%. “There are three things about which I wished that the Holy Prophet, Sall-Allahu alayhi wa sallam, did not leave us before explaining them to us in detail: the inheritance of grandfather and the inheritance of Kalalah (a person who has left neither a father nor a son) and some issues relating to Ribā.” (Sahih Bukhārī #5588)[5]. 2) The implementation of the contract is equally important. The above text clearly shows that charging of interest was not limited to individual transactions rather have a more commercial basis as well. Yet, in all the transactions, the Qur’ān prohibits interest whether the transacting party is poor or rich. Yusuf Panchbhaya served as chairman of a Shariah board and issued fatwas sanctioning UM Financial's mortgages as 'Shariah-compliant.' It is argued that since the Productive loans were not in practice at that time, the Qur’ānic prohibition did not govern such loans. Argument 1: Ribā which was prohibited by the Holy Qur’an was only confined to a particular transaction in which no increase used to be stipulated at the time of advancing a loan. How does the accountant treat the mortgage? This Qur’ānic refutation of this incorrect assertion is further strengthened by the wordings of Rasulullah salallāhu ‘alayhi wasallam in the Last Sermon. Having a house of ones own falls under the welfare system of the society. “ Canadian house prices have rebounded markedly from the depths of the recession, hitting a fresh record in may and bringing the buy/rent ratio to about 1.85x. FATWA LISTINGS. “What the historians have narrated about the caravans of Makkah reveals that the capital of a caravan never used to be the capital of one individual or a particular family; it rather belonged to the traders of different families and to those individuals who themselves had money or had borrowed it from others and had contributed it to the capital of the caravan, with a hope to earn huge profit.” [9]. Although this may not be the general trend, nonetheless it supports our argument that renting has been and continues to be a choice for those who cannot afford purchasing a house. However, Nabī salallāhu ‘alayhi wasallam also prohibited some other forms of sales under the same chapter of interest. ... Finance Advisory Board is a non-profit, self-regulatory, voluntary body engaged in the promotion of Islamic Finance in Canada… In the conventional mortgage the freehold is in the name of the debtor from start to finish. In Surah Baqarah, Allah says, يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِنْ كُنْتُمْ مُؤْمِنِينَ, “O those who believe fear Allah and give up whatever remains of Ribā, if you are believers.” [Al-Baqarah 2:278], The words “whatever remains of Ribā” shows that that every amount beyond the principle has Ribā. Since it started operating in the US in 2005 and in Canada … I am sure our religion is quite accommodating in all aspects of life and as such there ought to be a way for buying a house in these countries, living within the boundaries ordained by Allah (SWT) . February 22, 2014 in Islamic banking. Nearly 200 Toronto-area Muslim homeowners face an uncertain future after the company holding their mortgages was ordered into receivership. In particular the “Diminishing Musharakah” model has been adopted in many Islamic Financial Houses in quite a few different types. It requires the expertise of competent Ulama as well as experts in business and economics. (تفسير الرازي = مفاتيح الغيب أو التفسير الكبير (7/ 72 ، دار إحياء التراث العربي), [2]  وَالرِّبَا الَّذِي كَانَتْ الْعَرَبُ تعرفه وتفعله إنما كان قرض والدراهم وَالدَّنَانِيرِ إلَى أَجَلٍ بِزِيَادَةٍ عَلَى مِقْدَارِ مَا اُسْتُقْرِضَ عَلَى مَا يَتَرَاضَوْنَ بِهِ (أحكام القرآن للجصاص ت قمحاوي (2/ 184) دار إحياء التراث العربي), [3]  أخرج الفريابي عن مجاهد قال: كانوا يبتاعون إلى الأجل، فإذا حل الأجل، زادوا عليهم، وزادوا في الأجل، فنزلت: يا أَيُّهَا الَّذِينَ آمَنُوا لا تَأْكُلُوا الرِّبَوا أَضْعافاً مُضاعَفَةً (كما فى التفسير المنير للزحيلي (4/ 82)), وفى فتح القدير للشوكاني – وَابْنُ أَبِي حَاتِمٍ عَنْ مُجَاهِدٍ: قَالَ: كَانُوا يَتَبَايَعُونَ إِلَى الْأَجَلِ، فَإِذَا جَاءَ الْأَجَلُ زَادُوا عليهم وزادوا في الأجل ((1/ 438) دار ابن كثير), وفى التفسير المظهري –  اخرج الفرياني عن مجاهد قال كانوا يتبايعون الى الاجل فاذا حل الاجل زادوا عليهم وزادوا فى الاجل (2 ق 1/ 136), [4]  عن قتادة: أن ربا أهل الجاهلية: يبيعُ الرجل البيع إلى أجل مسمًّى، فإذا حل الأجل ولم يكن عند صاحبه قضاء، زاده وأخَّر عنه. 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