Should one take and a loan from a bank to buy a house or continue paying rent?

Q: I am residing in a rented house for the last 3 years and my monthly rent is being paid to a private owner by my organization. In future, I will remain living in the rented house. If I could get a loan from any bank to purchase a house for myself and pay the same monthly rent to the bank against that loan and in this way I shall become the owner of that house in 15-20 years time without affecting my financial liabilities. Is it Halal or Haram way?

A: Taking an interest bearing loan from the bank is haraam. Severe warnings have been sounded in the Mubaarak Ahaadith for the person who gets involved in the grave sin of interest.

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


Answered by:

Mufti Zakaria Makada

Checked & Approved:

Mufti Ebrahim Salejee (Isipingo Beach)