Purchasing a house through an interest based loan

assalamalekum wa rehmatullahe wabrakathu I have a question for you I have a house that I have been leaving in for 13 years, when I got this house I got a loan so  I am paying monthly payments to the bank. My wife just recently lost her job and finances are tight at the moment. I have also bought a home that was payed with my family money I have been working on it for a while and its just about ready to move in. Now I don’t know whether to let this house go, I don’t have the money to fix the house that I am leaving in. I wanted to know what you think I should do.in my heart I feel I should let it go I have been paying interest on this home for 13 years I don’t feel good about paying interest I made a mistake I just like to fix things that are pleasing to allah and than there are thoughts that comes to my mind that should rent it.i feel I don’t like to make a bad discussion. please keep my family and me in you’re dua that allah well gave me sound heart and a nafs that is pleasing to him and not to make me needy of anyone else except him.jazakallahu khayran

 بسم الله الرحمن الرحيم

الجواب حامدا ومصليا ومسلما

We are very pleased to see your effort in trying to correct your past mistakes. May Allah Ta’ala make it easy for you. In reference to your question, buying a house on an interest-based loan is impermissible. The prohibition of interest is established from various verses of the Qur’an as well as many hadith:

Allah subhanahu wa ta’ala says in the Qur’an, 

“Allah had made business lawful and interest unlawful.”

 (Surah al Baqara: 275)

Jabir (may Allah be pleased with him) said that Allah’s Messenger (ﷺ) cursed the acceptor of interest and its payer, and one who records it and the two witnesses, and he said that they are all equal. 

(Muslim)

Now that you have realized your mistake, you should try to dissolve yourself from this loan as soon as possible. If it is possible to switch to a Shari’ah compliant loan, you should do so. Otherwise, you should sell the house to dissolve yourself from the interest-bearing loan. Insha Allah doing so will become a means of barakah and blessings for you and your family.

والله اعلم

Allah subhanahu wa ta’ala knows best.

Omar Baig

Approved by Mufti Husain Ahmad Madani