Question
Dear Ghamidi sahab,
Salam,
I have listened to your lectures and I have been able to correct my many beliefs that we had from my ancestors.
Relating to mortgage you said that banks buy us the property but when I read the agreement they actually lend us the money and our liability is the cash which they paid to our layer to acquire my property , the title name on the property is mine not the bank so how we take this interest amount as rent . In case I am not able to pay back my mortgage amount they will takeover my home, sell it and take their money and if some amount is left they will give it to us.
Kindly let me know is this procedure of mortgage is Jaiz (permissible).
Answer
Salaam.
Thank you for writing to us.
When the bank gives you money, can you buy anything from it other than the house for which the loan is given? If not, then in reality it’s not a loan but a way of enabling you to get the house. If the house is in your name from day one, is it a disadvantage for you or an advantage? If you can’t pay the instalments, the bank will sell your house and give you from the sale proceeds the amount more than what you owe to the bank. That too is a fair deal. Where do you find a problem in this arrangement?
Answered by: Mushafiq Sultan
Date: 2019-05-11
