Buying a house through a bank
Q: Are we allowed to buy a house through Islamic Banking? Al Baraka Bank, Fnb Islamic Banking, etc.?
islamic finance
Home Financing through an Islamic Bank
Q: Our community bank offers Shari’ah compliant home financing which is structured as follows:
1) The Muslim buyer will select the property and the bank will purchase it with a contract for immediate resale to the Muslim purchaser for a fixed amount that will include the bank’s profit.
2) The Muslim buyer will be given a fixed price that will not vary with interest rates.
3) The Muslim buyer will have to sign a contract to buy the house from the bank before the bank purchases the property from the original seller.
4) The bank states that they will take a loan on which they pay interest from a secondary source to finance such a purchase.
5) The bank states that the buyer will have to insure the property.
Is this form of finance permissible and Shari’ah compliant?