Tuesday, June 19, 2007

Purchasing a house on Mortgage (Canada)

Q.

I want to buy house here in Canada but I don’t have enough money to buy the house. Can I borrow money from bank I know this is interest but here so many guys says u can buy house with interest and u should be live there u cant do that like business purpose, like BUY and SALE?

A.

In the name of Allah, Most Gracious, Most Merciful

Assalaamu `alaykum waRahmatullahi Wabarakatoh

1) Interest in its entirety is prohibited in shariah. Consider the followinginjunctions on interest.

يايّها الذين ءامنوا لا تأكلوا الربؤا اضعافا مضعفة.

“Oh you who believe do not eat up interest doubled and redoubled”

(Surah AL-i- Imraan 3:130)

2) ALLAH TAALA proclaims in the most clearest terms in surah al-Baqarah, the prohibition of interest.

الذين يأكلون الربؤا لا يقومون الاّ كما يقوم الذى يتخبطه الشيطان من المس . ذلك بانّهم قالوا انّما البيع مثل الربؤا . و احلّ الله البيع و حرّم الربؤا . فمن جاءه موعظة من ربه فانتهى فله ما سلف . و امره الى الله . و من عاد فاولئك اصحاب النار . هم فيها خالدون .

“Those who eat interest will not stand up (on the day of judgment) but they will stand like he whose intelligence had been spoilt by the touching of shaitaan. That is because they said, “verily trade is like interest” whereas ALLAH has made halaal trade and forbidden interest.

So to whoever came advice from his Lord, then he should abstain, for him is what has passed and his matter is to ALLAH, and whoever rejects then those are the people of the fire. They will abide in it for eternity.” Surah al-Baqarah 2:

قال : و يأذن الله لالبر و الفاجر يوم القيامة بالقيام الا آكل الربا فانه لا يقوم الا كما يقوم الذى يتخبطه

الشيطان من المس.

(Mirqaat Vol. 6 Pg. 42 Darul kutub Beirut)

Mulla Ali Qaari (R.A.) further commentates on this verse saying that ALLAH will grant permission on the Day of Judgment to both the pious and sinful to stand from their graves, except the person who indulged in interest. He will stand in a condition of madness and insanity.

3) يمحق الله الربوا و يربى الصدقت . و الله لا يحب كل كفاّر اثيم

“ALLAH will destroy interest and increase charity and ALLAH dislikes every ungrateful sinner.” Surah al-Baqarah

The increase that is observed through transactions of interest is empty of any kind of blessing and will lead to the certain destruction of the person involved on the Day of Judgment. It is truly a wretched and ungrateful person who lends out the wealth ALLAH has given him in order to collect interest. However much a person increases his wealth through interest it will ultimately avail him nothing. On the other hand charity is a means of salvation for the person

and will ultimately lead to his success on the Day of Judgment. It clear to see from the many examples around us that those people who live their lives on interest seldom find any peace and their wealth has no blessings in it, but those people who are charitable have great blessings in their lives and wealth.

Rasulullah (صلى الله عليه و سلم) has cursed that person who takes interest, the person who gives it, the person who writes down an interest bearing transaction and the witnesses of the transaction.

عن جابر قال لعن رسول الله صلى الله عليه و سلم آكل الربوا و مؤكله و كاتبه و شاهديه و قال هم سواء.

(Mishkaat Pg. 244 Qadeemi)

Abdullah bin Salaam(رضى الله عنه) has stated that interest is divided into seventy two levels of sin, the lowest level being equivalent to committing adultery with ones own mother and one dirham of interest is worse than committing adultery thirty nine times.

فى شرح السنة قال عبد الله بن سلام : لالربا اثنان و سبعون حوبا اصغرها حوبا كمن اتى امه فى الاسلام و درهم من الربا اشدّ من بضع و ثلاثين زنية.

(Mirqaat Vol. 6 Pg. 42 Darul kutub Beirut)

All the rightly guided ulamaa throughout history have regarded interest haram in whatever form it may be. They considered it a despicable act that should be avoided at all costs.

You have been ill informed, interest is not confined to business purposes but rather its prohibition extends to every such dealing wherein interest is found be it of a commercial nature or a personal nature. Interest is also used by the present day conventional banks as a means of exploiting individuals like you. Look at the following example:-

“In a newspaper article entitled: “What the banks don’t want you to know.” Karl Posel, mathematics professor and author of personal finance books says, “ more than eight million South Africans have bonds, but few realize that banks are milking them dry” “ Consider the following scenario: you have a R100 000 bond repayable over 20 yrs at an interest rate of 19.5% a year(assume that this rate remains the same). After 10 yrs of monthly repayments of R1660 you have paid R199 200 in total. Guess how much of your debt you have repaid after 10 yrs?

A paltry R12 500. The remaining R186 700 has been nabbed by the bank as interest charges. And the situation is even more depressing after 16 yrs – of your total payment of R318 720 you have paid off only R45 000 of your debt and still owe the bank R55 000.”

Many Islaamic banks can be found who will offer you a Shariah method of financing, which is void of interest. However there are many banks that claim to be Shariah compliant but turn up bogus. It is best that you investigate the Islaamic bank you want to invest in and see that it passed shariah compliant by a reputable Islaamic institute.

4) Interest opens the door to ALLAH waging war with you:-

يايّها الذين آمنوا اتّقوا الله و ذروا ما بقى من الربوا ان كنتم مؤمنين . فان لم تفعلوا فأذنوا بحرب من الله و رسوله . و ان تبتم فلكم رءوس اموالكم . لا تظلمون و لا تظلمون .

“Oh you, who believe, fear ALLAH and give up what remains of your demand for interest, if you are indeed believers. If you do not abstain, take notice of war from ALLAH and his Rasulullah (صلى الله عليه و سلم) but if you repent you shall have your capital sum. Deal not unjustly and you shall not be dealt with unjustly.”

And Allah knows best

Wassalam

Ml. Abdul Hameed,
Student Darul Iftaa
Checked and Approved by:
Mufti Ebrahim Desai
Darul Iftaa, Madrassah In'aamiyyah

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