Q: We live in a country, where it is impossible to buy a house on a full amount, it is more expensive than Europe. My husband is religious and wonts take a mortgage. We have been married for 2 decades and wasted lots on rental property, and the headaches that come with it. Buying ones own house is a basic necessity and advised by scholars, elders, alike if possible.
1. Is buying a house in installments permissible in Islam? From a real estate developer?
2. Can one use an installment plan which is jaiz, from a bank such as Al Rajhi bank?
A: Purchasing a house on installments is permissible on condition that the seller fixes the price of the house from the inception and in the case of you not paying your installment, you will not be charged interest.
Taking an interest bearing loan from the bank is haraam regardless of whether the repayment of the loan is through fixed installments or not.
And Allah Ta'ala (الله تعالى) knows best.
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