Avoiding interest when purchasing a house

Q: I am planning on buying a new house that costs $250,000. However, I do not have enough money to pay the full amount up front and I do not want to pay interest on the house. The deal I have worked out with the company selling the house is that I will pay $300,000 for the house but I will not pay any interest. Meaning, I will pay $2,000 every month for 150 months for a total of $300,000. This way the company will make some money on the house and I will not pay any interest.

Is this a permissible deal for me to make?

A: If the company you are purchasing the house from is the owner of the house and they sell the house to you for a fixed price of $300,000 in instalments, it will be permissible.

And Allah Ta'ala (الله تعالى) knows best.

 

Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)