Is Mortgage Haram

Is mortgage haram? When it comes to mortgages, there are a lot of different opinions out there. Some people believe that they are haram (forbidden), while others believe that they are permissible. So, what is the truth? Make sure to read till the end to know answers to your queries!

What is Haram?

There are many things that are considered haram, or forbidden, in Islam. Some of these things are obvious, such as murder and stealing. Others may not be so clear-cut. For example, many people believe that gambling is haram. This is because it can lead to people becoming addicted and losing money that they cannot afford to lose.

There are also many things that are considered haram in terms of personal behaviour. For example, it is considered haram to lie or to cheat. This is because these behaviours can lead to people being hurt or taken advantage of.

It is also considered haram to engage in any kind of physical violence. This includes hitting, kicking, or any other kind of physical assault. This is because physical violence can lead to serious injury or even death.

Finally, it is considered haram to consume alcohol or drugs. This is because these substances can lead to addiction and health problems.

All of these things are considered haram because they can have a negative impact on the individual and on society as a whole. Islam teaches that we should live our lives in a way that is positive and beneficial to ourselves and to others. This means avoiding anything that might cause harm.

What is Mortgage?

A mortgage is a loan taken out to purchase a property, where the property acts as collateral for the loan. The borrower (mortgagor) makes regular payments to the lender (mortgagee) over a set period, typically 15 to 30 years, until the loan is fully paid off.

Advantages of a mortgage include:

  • Allows individuals to purchase a property without having to pay the full amount upfront
  • Provides stability and predictability in monthly housing costs
  • Homeownership can provide a sense of pride and achievement
  • Home values often appreciate over time, providing a potential source of equity

Disadvantages of a mortgage include:

  • Interest charges over the life of the loan can add significantly to the overall cost of the home
  • Failure to make payments can result in foreclosure and loss of the property
  • Monthly payments may be too high for some borrowers, limiting their ability to afford other expenses
  • Property values may decrease, resulting in less potential equity or even negative equity.

Is Mortgage Haram or Halal?

There is much debate surrounding the issue of whether or not mortgage is haram. Some people believe that any type of loan that involves interest is automatically haram, while others argue that certain types of Muslim-specific mortgages can be permissible. Ultimately, it is up to the individual to make a decision based on their own religious beliefs.

If you are considering taking out a mortgage, it is important to do your research and speak with a religious leader to get guidance on what is right for you. There are many different opinion on this topic, so it is important to make an informed decision before moving forward. Ultimately, it is up to you to decide what is best for you and your family.

Source Reference – The above information is verified via Islamic Finance Guru.


Can I buy a house without a mortgage in Islam?

Yes, there are alternative ways to purchase a house in Islam without a conventional mortgage. For example, you can consider options such as an Islamic home financing or rent-to-own agreements that are structured in a Shariah-compliant way.

What is Islamic home financing?

Islamic home financing is a type of home financing that is structured in a Shariah-compliant way, without involving interest (riba). Instead, the financing is based on an equity partnership, where the financier and the buyer share ownership of the property, and the financier’s profit is based on the rental income received from the buyer’s portion of the property.

What are the conditions for a Shariah-compliant mortgage?

The conditions for a Shariah-compliant mortgage include avoiding interest-based loans, ensuring that the transaction is based on an equitable partnership between the financier and the buyer, and ensuring that the transaction complies with the principles of Shariah law. It is important to consult with a qualified Islamic scholar or expert in Islamic finance to ensure that the transaction is structured in a Shariah-compliant way.


There is no definitive answer on whether mortgage is haram or halal. It depends on interpretation and personal opinion. Some people consider mortgage to be haram because it involves interest, while others argue that it is permissible if the mortgage is from a Muslim-specific bank or institution. Ultimately, it is up to the individual to make the decision on whether mortgage is right for them. Thanks for reading!

Also explore these financial debates : Is 401k Halal?, Is Health Insurance Haram?, Are Bonds Haram?, Are Credit Cards Haram?, Is Life Insurance Haram?, is option trading halal?, Is Investing in Stocks Haram?, is cfd trading halal? and many more at Halal Haram World.

Mohamed J

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