The prophet said that at the end of times the halal will become haraam and the haraam halal! Whether dealing with muslims or non muslims interest is interest! Riba is haraam
Muslimah Shabnam please don't apply general statements into specifics. My cousin is a scholar from Hanafi Madhab and said almost the same thing about purchase of products, in that case was an used car. Ie; If a dealership sells you a car on specific price which may be higher than initial amount but he lays it out on a monthly basis without informing you of the interests charged, it's fine. He also added when you are paying monthly installments on the car it has to belong to the dealership and not through a third-party like banks. Now he's not a scholar of Islamic Economics and I don't know his field of expertise but I believe he may have referred to other scholars or something regular scholars are supposed to know. From your comment we can kind of predict that you may be from Ahle Sunnah or just a lay person. Please don't spread self taught teachings which creates more fitnas among the ummah. While you say not to follow school of thoughts yet borrowing rulings from left and right mostly from imam Shafi, Hanbal and Maliki while discarding the oldest, the majority and most prominent Imam Hanifa from times of the companions and not compiled 200-300 years later.
Alim Khan I find it quite disrespectful that you are judging others. The Quran was not revealed for a scholar! Allah SWT sent it down so that even a layman can understand the majority of it. Were the sahabas scholars when the verses of Riba were revealed! Riba is riba whether you are taking or giving it. All banks work on interest and even if they didnt mention interest or change the name it would still be interest! Islam is simple and first look at the fundamental source of guidance which is the Quran and Sunnah. If nothing was mentioned then I would be happy to look at a school of thought!
Alim Khan And trading is different to usury, Allah SWT has permitted trading but not usury. Theres a clear difference between profit and interest and may be you need to recheck the definitions. Peace
The reason I mention this is because the very enticing methodology has caused me to lose faith and tons of many others due to the acceptance of all Hadiths and the justifications made thereof to name a few not to mention coercion in religion.
There are 3 types of Islamic financing models used nowadays: 1. Murabaha. 2. Diminishing Musharaka (co-ownership with monthly installment combining rent and loan payback). 3. Ijara (rent to own). Conventional mortgages are haraam. For instance an incident where an institution convinced an Office of controller, that there is no FUNCTIONAL difference between Murabaha and Conventional mortgage. So although in practicality it ends up looking the same, in theory it is not equal because "you do not want to open the floodgates to clear cut riba". A murabaha is where the bank buys the property on behalf of the buyer and immediately sells it to the buyer on a higher price on installments. This is halal. However in a conventional mortgage the bank loans you money to buy the property in return for a larger amount of payback money. This is why conventional mortgage becomes haraam. The most commonly used mode of islamic financing is the diminishing musharaka, this is a shared ownership where the bank and the buyer both buy the property and become the co-owners. The buyer moves in and pays in his installment - a combination of rent to the bank for the share of property still owned by the bank and paying back some of the loan. Therefore the monthly installments might have varying degrees - the proportion of rent might be higher initially but as you keep contributing money towards the purchase i.e. paying the loan back the proportion of rent becomes smaller. The third mode of financing is ijarah, where the bank buys the property and you move in, keep paying fixed rents while at fixed time intervals buy a portion of the house. The bigger the portion of house you buy, the smaller your rent becomes. All 3 modes of Islamic financing have a lot of problems. Murabaha is not economically feasible for lending companies, although in theory it is the best, as they will run out of money to lend after the first few customers. Diminishing musharaka and ijara, both dump complete responsibility on the buyer although in theory and Islamic pronciples as co-owners they need to share the costs of maintenance and upkeep with the buyer. Bottom line - if you feel you have necessity i.e. hajah you may want to look at Islamic mortgages inspite of many non-Shariah compliant clauses. If you have a greater necessity i.e. bigger hajah or even a dire necessity i.e. dharoorah and have no access to Islamic mortgages then you may look at conventional mortgages. Every Muslim's situation is different and it is best that they talk to a scholar near them that they trust. May Allah subhana ta'ala forgive me for if I have miscontrued.
Unfortunately, with both types of Islamic mortgages (also known as Shariah-compliant financing), the bank does not technically "possess" the house in the same way as with a conventional mortgage. Since the bank does not take ownership, it's not worth spending your time on this type of transaction. ITS HARAM...
If in doubt keep well away from a anything that is doubtful to be on the safe side. Keep your tawwakul in Allah and He will find a way out for you from every difficulty
@@selinkorkmaz1019 no you can't, These guys in this channel are just reformists in islam they are really hurting the ummah, do not take any of their propaganda.
As a student of knowledge, it is sad to see so many people reacting emotionally and going crazy. This is one of the reasons that we as an Ummah are so totally ignorant that we lack in even basic adab [manners] towards the people of knowledge. They spend years studying and some "mini-mufti" who never studied under a scholar comes along, throws out one Ayah/Hadith (totally out of context) thinking they know more. It's like a neurosurgeon who spent 15 years studying and training being told they are wrong by some dude who went to the library and picked up a book of neurosurgery. At least listen to what this qualified scholar has to say rather than throwing quran ayah's completely out of context and ahadith. Why are your ayahs and ahadith out of context and not applicable?
1. Riba is an Arabic word. To say it equals "interest" [an English word] IN EVERY TRANSACTION is just an assumption. In fact the concept of Riba is misunderstood and there are multiple types of Riba and most people who comment on it and throw Quran and Hadith around are themselves totally ignorant of what riba means and it's types. 2. Riba applies to a loan - fulfilling the Islamic definition of "loan." Not necessarily the non-Islamic label of a "loan." 3. In Islam, a loan is something when you have complete control over it, to do as you please i.e. no restrictions on what you do with the money. As soon as there is a restriction - it is NO LONGER A QARDH [Loan in Islamic Terminology] 4. The (non-Muslim) bank might call it a "loan" but in Islam it is not actually a loan - because strings are attached. How? 5. I can buy, with the mortgage, ONLY 10 Downing Street. I cannot then decide to buy instead a boat, a car or even 11 Downing Street. There is a restriction. 6. If there is a RESTRICTION, it is NO LONGER a loan according to Islam. It is a Wikalah [representative] contract. You are now a Wakeel of the person/bank giving the money. Seriously, people need to go and study fiqh - which actually puts the Quran and Sunnah into practical form. Instead of slandering scholars..... go and learn something instead of making up your own definitions of Riba and Loans etc.
I have no doubt whatsoever that the ignorant people will slander the people of knowledge because of the state this Ummah is in but eventually, the rewards for the people of knowledge is immense. [2:269] He [Allah] grants wisdom to whom He pleases; and he to whom wisdom is granted indeed receives a benefit overflowing. But none will grasp the Message except men of understanding. [39:9] ...Say: Are those equal, those who know and those who do not know? It is those who are endued with understanding that remember (Allah's Message). [58:11] ...Allah will raise up to (suitable) ranks (and degrees) those of you who believe and who have been granted knowledge. The Prophet [peace and blessings be upon him] said: "Upon a person whom Allah desires good, He bestows the knowledge of faith." Bukhari and Muslim "A person who follows a path for acquiring knowledge, Allah will make easy the passage to Paradise for him." - Muslim A Student of Knowledge
It's not so-called "mini-muftis" that condemn the views expressed in this video, but respected Islamic scholars who are life-long experts in Islamic finance and are intimately familiar with not only Western financial practices, but how it relates to Islamic jurisprudence as well. Once that is understood, the speaker in the video might well be considered a "mini-mufti" by some when compared to the towering and informed scholars of Islamic finance. To dismiss the opinions of such scholars so easily is actually what amounts to poor adab...since they, not the speaker in the video, are analogous to the expert neurosurgeons.
inspiring islam ya Fulån, you can clearly see that this brother couldn't explain his points properly .. Looks like He's left the interviewer more confused! You should read up what "mufti taqi uthmani" wrote in response to the shaykhs claims of it being permissible. Worth a read, trust me. Completely demolished the debate. والسلام عليكم و رحمة الله و بركاته
I definitely understand his position. It can be alarming because we've been taught in a certain manner. There's many hadith that might seem contradictory when another hadith seems to be saying the opposite. But our religion was never rigid or finite. It does have flexibility in complex situations such as time, culture, geography, and yes even financial institutions. I have seen mortgages with a similar format. The lender says, I will buy this house from Thomas for a $100k lump sum, and resell it to Daisy for $110k as a discount if she pays a lump sum. If she makes payments, the price goes up to $135k. Daisy will pay monthly and a seemingly $100k home is paid for over the 20 year period for $135k. Your paycheck is doing the same thing. Just ask your HR department. Insurance? Same. Education? Same! Any paper currency is the exact same premise. Are you a renter? You're just paying a lender through another person for a service and dwelling you'll never actually own. When you purchase food, you eat it and benefit from the nutrients. You can eat it, or save it, or give it away, correct? Its yours. When you pay rent you can't. The very definition of 'usery'. You're paying for something that will never be yours no matter how long you pay for it. I think it's a welcomed prospective that should be given its merit. And continue to be researched. If you don't want to have a traditional mortvage, don't. Make duaa and be charitable so others don't feel compelled to. If that's your intention, to save people from sin, correct? Please lend interest free money and mortgages. Start an organization that does! Send a student to go study! Sponsor one. Solutions. Contributions. Not keyboard Ninjas, lol! Salaam! May Allah rectify our situations. Ameen.
Unfortunately, there are many flaws with this theory, simply from a financial perspective, ignoring the religious flaws. At 8.25, he says that the bank buys a house for 10,000 and I buy it off the bank for 20,000 so there is no interest. This would be true, except the bank never buys the house in real life, or else it would be an asset of the bank and this would have to go on their balance sheet as an asset. So they don't do this. He also mentioned that if you stop making payments, the house would be repossessed by the bank, and this supposedly proves that it's not your property and you are buying it from the bank, at a higher price. This links to the first point. From a financial standpoint, this is totally wrong. The bank issues a loan, known as a security backed loan. This is a type of loan, which takes collateral as a security, to reassure the bank they can get their money back even if you lose your job for example. So the collateral in this instance is the house, so the house acts as a security. The minute you stop paying back the loan, the bank has the right to seize the collateral, ie the house. So this theory is invalid too. Security backed loans can range from a variety of things. For example, I might need to borrow 4000, but the bank doesn't think I will be able to pay it back, so I give my car as a security. It doesn't mean the bank owns my car, as suggested in the video, it simply means the car will be seized if I can't pay back the loan so the bank can get the money back.
Our scholars? May Allah protect us from these so called scholars. You name it you find for both sides. We should read and use our brains. Quran has everything
One thing I need to say is that I researched this man and he is a Hanafi and from central Asia which in my view has the most authentic and classical Hanafi tradition. That thirst for logic, that tendency to use mind, still shines after hundreds of years...Abu Hanifa was truly an amazing man. This is why the Fatwa brigade, the "Tell me it is haram so I can condemn others" crowd don't/won't/can't understand him.
And you are the one to understand this? Please reflect on your comment and your reason for saying it. We are living in a time where many previously respected shyoukh have deviated and are catering to a watered down western version of Islam. Muslims must be cautious of falling into these traps of shaytaan. Stay away from mental gymnastics and complicated statements, especially when it comes to things that are forbidden by Allaah (e.g. interest). Go back to the roots of Islam of living a simple life within your means and don't chase after worldly desires (owning property you can't afford, cars you can't afford, etc)
A conventional loan is based on interest rate. Therefore, you can not guess how much you will pay in ten or twenty or thirty years. The reason being that interest rate changes over time. How can you ask someone to buy a house for you and then say that it’s them who told you to buy a house for them and they will sell it to you. And that someone being a financial institution? You must be smarter than them because you are fooling them and benefitting from this transaction. Or are you? If you didn’t borrow money to buy the house then who borrowed the money? Let’s say you didn’t borrow the money. So you won’t pay it back. Is the bank going to go after the original owner of the house or is the bank going to come after you in case of non-payment? Of course the bank will come after you because you were the one who paid the down payment for the house. You signed the papers for borrowing the money from the bank to buy a house. Buying a house can not be compared to buying a chicken, sir! Subhan Allah
You must have a house on mortgage. Hanafi mortgage. Research the etymology of the word mortgage that should tick anyone off resembling a functional brain or a heart brewed with fear of Allah
@@awaqar2 there is a concept of Islamic mortgage to be fair. But yes, these guys are specifically talking about conventional mortgage. That's no doubt harãm
@Wasay N And the fact that you are preemptively calling those with a different view the "fatwa brigade" showed your commitment to acceptance of others. Islam is not based on mere logic or our ability to rationalize. It's based on what was revealed. The first revelation and instruction to our Prophet SAAWS was "READ"(/ recite) not "THINK and propogate your ill-researched views". While Hanafi school has its way and we respect it, how dare you disrespect those who actually say "bring us evidence from our Lord and His Messenger SAAWS"? Especially when making permissible something that's widely understood to have been explicitly made harãm. It's a justified resistance, isn't it? Please grow up and stop dividing the Ummah further. It may have made sense to you and some layman who has not done any research, but respect those who have studied the subject and can dispute the points raised in the video. Trust me, there are flaws in his arguments
The following are some ways that Riba is different from Mortgage Interest: ~ With riba, the rich lender does not contribute to any business, he simply uses his money to grow his wealth. With mortgage, the rich lender (or bank) at least mandates the borrower to get an appraisal, inspection and home insurance. They spend time to review those docs too. Should they not be compensated for putting in their time to review documents that benefit the home and the borrower? ~ With real riba, the lender lends money, and he gets back money with extra. Its money for money plus extra. Or gold for gold plus extra. With mortgage, the bank never hands you the money. Instead they hand the money to the seller and then make an agreement with you to transfer the house to you for a higher price. Its basically a product for money, like a trade, but not money for money. ~ With mortgage, the borrower and lender each put up their own money to fund the purchase therefore both having a stake in the house, both legally and practically. This is like a business partnership with the bank. With riba loans, no such partnerships exists where both parties are tied to a commodity.
Most of the people don't understand this concepts . The financial contract and its obligations on both parties is one thing and then the actual Islamic concept of riba have to be understood. The example I use is a landlord charges rent X amount per month over 25 yrs and the tennant owns nothing at the end. The bank in partnership with the lender charges x amount for the share of the house per month over 25 yrs and the tennant keeps the house.. They will say the 1st one is fair and halal as it does not have the term interest in the contract. . Then ask what is the difference rent and interest .
An advise to all brothers/sisters. Please disable comments for any future videos to eliminate time-wasting, destructive comments among each other. Brothers/sisters, when will you wake up? When will you stop attacking one another? How many times are you going to keep falling into your greatest enemy's trap, Satan? If you have something good to say, say it but if you have nothing good to say, be silent. We should be united as 1 PEOPLE.
He may be well educated in the field of Fıqh. However he knows nothing about banking system whose sole aim has been to exploit people. Let's say you couldn't pay the last two installments, do you think the bank will be understanding about your financial situation!? Of course, no! They will usurp your house along with your 238 months of payments. What do you call this, an Islamic transaction!!!? That's why his fatwa is very unfortunate!
@@hasanyildiz9364 The banking system helps savers by channeling their money to businesses and borrowers who can use the money - circulation of wealth as in Islam.
The guy said only if I posses that money it will be considered debt. I think a house has intrinsic value. You take possession of the house by occupying it. You are taking possession of something greater that cash money. You are taking possession for something that has intrinsic value. The bank requires you to leave the house when you don’t make payment. You don’t have full ownership of the house but you occupy it. You are still in debt with the bank that allows you to stay in the house.
He's trying to explain secured, and unsecured debt. However English is not his native tongue. By taking out secured debt (i.e: the Bank loans you money only based on the particular house you are buying, his arguement is it is not considered Riba). Whilst an unsecured debt, is considered Riba.
May Allah save us all from riba. I personally follow many renowned scholars and none allows it. He is the exception which I personally didn't like. Don't make excuses for people to get involved in riba.
Can u explain the verse [2:275] about the consumption of interest? The Arabic word used is "ya'kulun" which means eat, consume, etc. If a person is borrowing money to buy a house, then how is s/he consuming that money? They have chosen to buy a house via a mortgage over time versus paying rent over the same time which is considered wasteful. WIll appreciate your view on this. Thanks.
There's a difference between usury or ribaa and interact Mortgage a house to take a loan and taking a housing loan There's no sin in taking a loan to buy a house. Thus ie not usury
In the Hanafi madhab, it is allowed in some circumstances to find loopholes in fiqh to bring ease to the masses. The loophole, which is not the same thing as dispensation, means one can find a way to follow the Letter of the Law but forgo the Spirit of the Law. This is exactly the case with Islamic Financing. When Mufti Taqi Usmani permitted a loophole for financing (Murabaha, where the financier buys for the client and then sells at a higher price) in the 70's, he did it to bring TEMPORARY ease for the masses hoping that in the future, new financial developments in the Muslim lands would render this mechanism unnecessary. This obviously didn't happen. By the looks of this video, the concept Shaykh Atabek is using is very similar to Murabaha in Islamic Financing, so the loophole concept could also apply here. He uses Tawkeel and Murabaha as mechanisms to mask what is essentially Riba. From what I gather, the whole idea behind the video is that Mortgage from non-Islamic Banks is no different from the way a lot of Islamic Banks do it as they both use Tawkeel as a mechanism. While the mechanism slightly varies among Islamic Banks (and probably non-Islamic Banks as well), the Spirit of the Law is most closely followed when the risk is distributed among both parties. For example, the bank can end up buying a house, but the client can then reject the offer if he doesn't agree to the bank's higher selling price. This is what I understand from some knowledge I got from Ustad Salman Younis' courses on Seekers Hub. Please don't take what I have said to be a fatwa one way or another. I wrote this only to bring perspective on the issue. Everything good that I have said is from Allah, and everything else is from me. May Allah forgive us and grant us better understanding of the deen. Ameen.
@Hotboxing Fight Night Yes you're correct in everything you said. I think Murabaha contracts may be seen as a loophole (heela) when used for financing houses as it was traditionally used for a different purpose that was more equitable for both parties. But for financing houses, it gives preference to the financier in terms of risk. The main issue with Islamic Financing in the US at least is the fact that they use Fannie Mae and Freddie Mac for funding in the backend, which restricts them to certain parameters when making a contract with you (whether from Musharaka or Murabaha model). That contract ends up having issues that don't make it halal in the truest sense. In Canada I believe Manzil uses private investors for funding their financing projects, so they are able to create a contract that is closer to the spirit of the law as they are not bound by restrictions from a third party. If they follow the procedure properly, when they purchase a property, they assume all risks before selling it to you.
Law of Dharurah justifies consuming Haram in exceptional circumstances Similarly in times of food shortage, famine, A muslim is permitted to eat even Pork if nothing else is avaialble and only until Halal food becomes available But when you are eating the Pork, you dont need to fill up your plate or worse, licking your fingers after eating pork, you only consume as much is needed to survive. Why is it that Cash price does not equal Credit price? Because the Bank or Money lender is insuring themselves against Risk and gauranteeing for themselves a profit by offering *Credit over time* Only Allah determines whether something will increase or decrease in value over time Muslims, *do not play games with Riba* , Allah has warned the believers to take heed of a *War from Allah and His messenger against* those engaged in *Usuary* agreements 🤔🤔
People like to hide behind fatwas and sheikhs. They have already made up their mind to get a mortgage so now they desperately try to find any sheikh who will tell them that a conventional mortgage is permissible. While at the same time they ignore the other 99% of Ulema saying it’s Riba.
need and wants play will not help. House is a need ie darorah, that can be rented also while my own house is a want and is not a darorah at all. There can be exceptional cases but a general fatwa doesnt applies to all. Additionally no one is allowed to eat a plate full of pork and boast about it in case of daroarah ie those who are buying a house with this logic should limit to as tiny as they can but we see they buy mansions and boast about it. thats shame
May ALLAH SWT protects us and guid us to right path...as this end time is so tricky and dangerous ....ya ALLAH SWT protects ummah Ameen sum Ameen Ameen sum Ameen
With all due respect to everyone, I find that there are few issues with his explanation. 1. The Shaykh mentioned that he has spoken to a Bank Officer (I assume it was Sales guy) and applied Hanafi fiqh against how the Officer explained to him. Shouldn't he be looking at an existing mortgage contract paper and validate it against Islamic jurisprudence? At the end of the day, what is written in the paper is what matters, not what a Bank Officer/ Sales people tells. 2. He also mentioned that if there is no debt, then there is no interest. I dont think it is accurate. There is a famous hadith about exchanging inferior dates for superior dates and Prophet Muhammad (may Allah bless him and grant him peace) told that this transaction was actually riba. 3. When someone defaults in paying an installment, every traditional Bank charges additional interest/money for it. The Shaykh hasnt mentioned anything about it.
SubhanAllah - your 2nd point about the Hadith actually raises an interesting point. If the value of $10 diminishes due to inflation, and other external factors, then the $10 paid back many years later, is like the superior dates vs inferior dates. Although the numeric value has not changed (which is what many people are fixated on) the value of what $10 buys you certainly has. So, with that said - shouldn't we be focused on the real value instead? We're using fiat currency, the paper money itself is based on interest. Perhaps something we should collectively ponder on in more detail..
What he says is clear but very sophisticated and delicate. I prefer that he discusses it with other scholars from other schools of thoughts especially who are specialized in this very topic to see if he is missing any important aspects. Allah awj asks us in the Quran to use our logic....getting a mortgage in a western country is more logical than renting a house or apartment because after say 15 years you will realize the difference: you continue to pay a huge portion of your income as monthly rents while a person you know becomes the owner of the house he lives in which means he owns hundreds of thousands of dollars. Thus I decided to get a mortgage to buy a house and when I become its owner after paying all the monthly installments of the mortgage I will sell it and give all the money to charity...or I continue to live in the same house but as a renter (tenant) and I can give the monthly rent as charity. It is very bad to live as a tenant because your landlord can access your rental unit under many excuses. Furthermore, you are unable to change anything in the rental unit for example to install a bathroom like the ones used in the Islamic countries....Living on your own property as a Muslim in a western country is too convenient.
@Hotboxing Fight Night The main idea is not the toilet. It is freedom. landlords treat tenants like slaves especially when there is a housing crisis. Second, instead of giving hundreds of thousands to your landlord give them to poor Muslims even if it is not considered as charity. So I have a clear question for you: Which is better to give your landlord hundreds of thousands dollars or to give them to poor Muslims?
@Hotboxing Fight Night Honey! I am not talking about my dream house. I am talking about life necessities. Renting even a small ugly apartment is slavery. You Just like to argue. I am living is a western country just because I am obliged and I do not have another alternative. And if you live in a western country then it its difficult to be a renter. 18:28 And keep yourself patient [by being] with those who call upon their Lord in the morning and the evening, seeking His countenance. And let not your eyes pass beyond them, desiring adornments of the worldly life, and do not obey one whose heart We have made heedless of Our remembrance and who follows his desire and whose affair is ever [in] neglect. So according to this verse of Quran, any Muslim who choose to live in a non-Muslim country without a really valid reason is committing a big sin every moment. A valid reason is to fear for your life or to fear from a serious harm. Not obeying a verse in the holy Quran is like disobeying other verses. You choose to stay in a western country then you are like someone who choose to disobey the verses that forbid adultery, consuming wine, homosexuality or stealing! So the main issue is not RIBA! It is being obliged to live in bad circumstances. Those Muslim who choose to live in a western country by their free will and to get their dream mundane life they do not need to discuss RIBA they need to discuss their ISLAM as a whole to see if they are real Muslims or just hypocrites.
@@aldallika3648 this is a ridiculous point you’re making. You are trying to try the rules of Allah for your benefit. By your understanding i can sell alcohol on the bases that i give the money i earn through that alcohol i give to charity because its better i give to poor people rather than major companies making money of it. Ridiculous FEAR ALLAH. dont try and play games with the dean. Its worse to try and make something halal than to say you know this is a sin and i seek allah forgiveness because im weak. Dont try to be smart with allah like what the jews use to do.
@@themadakh3229 you made a logical mistake I am obliged to live in an apartment or a house since I do not have any other choices because I can not live in a cave for free and I can not build a shed in the forest to live in it with my family. BUT you are not obliged to sell alcohol to make money. Use your logic to find an example that is similar to the situation we are discussing.
You have to watch this with an open mind and not with the preconception that the interest paid to the bank is Riba. Then look to see wether it’s permissible or not in Islam. Don’t put it in the category of Riba without investigating it. I’m not sure myself! I haven’t got enough knowledge about it.
From Abu Hurayrah : The Prophet, , said: "There will certainly come a time for mankind when everyone will take riba and if he does not do so, its dust will reach him." (Abu Dawud, Kitab al-Buyu', Bab fi ijtinabi al-shubuhat; also in Ibn Majah)
To all my brothers and sisters who are cursing Shaykh for this video, please seek some knowledge and sense. There were no banks in the era of Mohammad (pbuh). The ruling against interest was from an entirely different perspective, just to protect poor from rich, if the poor borrows some money, spends it and then has nothing to payback. But if a commodity is involved, this condition does not hold anymore. Here is my point: I pay house rent 1000 euros/month. If I live in my flat for 25 years, I would end up with zero savings. But the bank offers me a possibility to buy same house and payback 200k loan over 25 yrs. In return, bank charges me 1% interest (as a profit for the time value of money). After 25 years, the house would be mine and I can sell it to get some savings. Why would be Islam against this? Most of your comments below are nonsensical and a proof of misinterpreted following of an islamic ruling. I pray Allah to guide me if I am wrong. This is just my kind analysis. I think Shaykh is right in his research and opinion.
May Allah guide you to learn more about islam as i can see you’re more focused on this dunya with your saving , one last thing who told you you’re going to live until you clear that debt off
I dont understand why this matter of mortgage is still so difficult to understand for a big majority of muslims and almost all of them still buy the houses on mortgages. My understanding of the issue is very simple, Islam came to this world to fight off injustice (Zulm) and riba was a biggest zulm where people would never be able to pay off the principal although they were paying much more than the principal. In today's world it would be credit card debt, if you pay minimum then it will take you years to pay off the debt whereas you end up paying many times more than you owe. But with the house or car loan there is a fixed duration and at the end of that duration the car or house belongs to the customer. Then where is the Zulm (injustice) to that which Islam came to fight off. Just compare this to the situation when you rent for 20+ years and at the end of 20+ year you own nothing. I think this is just misunderstanding that stem from the word interest that is used for both profit and riba. Jazakallah khair to the Sheikh for beautifully explaining the difference and making the life easy (and guilt free) for people living on the west who have no option but to get the mortgage if they want to own the home.
Riba and profit don't mean the same thing, nor do they operate on the same principles. If you're talking from a "life-is-too-difficult-for-me" perspective, then it's not to then be used to give a fatwa justifying the entire ummah to follow your ruling. In case your situation is at an extreme, let the exception not become the rule. Be careful what you say on a topic. Riba is harãm. That's what is stated. It's not for us to use our limited logic to say that it's only due to zulm (even though that may very be a component) and therefore by eliminating some zulm riba is suddenly something good. Don't take lightly something Allãh has warned would culminate in Him waging war on them over. A little caution and humility might be in order here. With due respect, brother/sister (sorry I can't tell by your username. No offence)
A practical solution would be to take a basket of commodities I e flour, sugar, milk, rice, gasoline etc. Price it at the time of the loan e.g. valued at $50. Assuming loan amount is $1000 which will give you 20 units of the commodities. At a later period say at repayment the commodities are valued at $55. Then amount owed would be 55*20=$1100. The only problem is what would be the incentive for someone to lend the money and how to incentivise it. Parties could agree on an additional mark up of say x% on the basket at repayment to incentivise it.You don't have to change a whole financial system for it
I still believe that when you purchase a brand new car and you don't have any credit or are a first time buyer, they shouldn't charge you interest period! For what reason are they charging interest????? We have to be upright here and have a clear precise explanation as to why we need to build credit in the first place, then be in debt, then file for bankruptcy and then take financial education courses that tell you to pay cash if you can afford it, and don't get credit cards, because you don't need credit in the first place. If you can afford it and need it or want it, buy it, if not, forget it. I learned a lot on David Ramseys course on this after I filed for bankruptcy in 2015.
Mostafa Mansoori - you appear not to be operating in the real world. Nobody is going to lend anyone money (unless they are related etc) without charging for the use of that financial aid. And Islam doesn't advocate this approach either, except in exceptional circumstances. Making a charge for the use of money, provided the charge does not constitute economic exploitation, is quite acceptable.
As a person who has a mortgage. He makes no sense to me. If you purchase a house you automatically get it at some interest rate. So if interest is the issue you have it from day one. Another issue with banks is compounded interest. Anytime you miss even one day of a payment that missed payment is subject to compound interest until that payment is made. So everyday the payment grows. So a 500 payment can turn into a 1000 payment easily. Another issue is say you buy a house for 150,00. By the end of 30years you would have paid back 30,000+ unless you make extra payments to help reduce the interest. But the problem is that from the day you sign for the loan you are in a race against interest. Which is the problem. I got my loan with my uncle before I was Muslim and he lives in the house but my name is still on the mortgage. If getting out of the loan wouldn't make my uncle homeless I would totally get out of it immediately. Do not get a mortgage people!
I went to a talk over the christmas break about riba from a sheikh who teaches in the masjid Al haram. He said that due to riba being a major sin you can not use the fact that a house is a necessity in order to get a mortgage. Riba is a major sin and it has been reported that the Prophet Muhammad (pbuh) curses the person that deals in riba or writes a contract of riba and it has also been reported that the Prophet even went to the level of saying that dealing with riba is worse then sleeping with your own mother. SubhanAllah may Allah protect the ummah. This video seems as though he is going the long way round to make something haram, halal. I am not saying I am a sheikh just giving my point of view. Allah knows best.
Masha Allah, good discussion. However, one question. The Sheikh gives very nice example " A Stone weight of Barley" - Here it is not an unknown transaction. But with regards to mortgage, will it not be unknown given the fact that you won't know what you are going to pay back exactly ? Like this year you could be paying for example 2.5% but next year or after 2 years you could be 3.5% or 1% depending on the interest rates prevalent at that time. With regards to stone, I agree although the exact weight is not known in kg or gms, but it is still a 'known' or rather 'fixed' weight which is not going to change but here in mortgage it will most defiantly change depending on the interest rates. Henceforth how can 'mortgage' be a KNOWN transaction ? If bank buys the property for say 100k and sells you for 120k with condition that you have to pay back 120k in 25 years then it is still understood (as the Sheikh simplifies it nicely) and a 'known' transaction. But in mortgage it is not like that right. It is not a straight buy + sell. You won't know how much you are going to pay the bank in the end right so to me it appears Unknown and the analogy of the 'Stone Barley' is not applicable to conventional mortgages that are discussed here.
@@omarsayid7228 I have never worked in a commercial bank, not sure of the point of your question. I have studied and worked in finance. The way a floating rate mortgage works is that at the renewal date you can pay off the remaining balance or renew at the new rate, so its a useful option for many people. Many of your friendly neighborhood banks offer them as well as the choice of a fixed rate.
@@roberthannah7983 The reason why I made that point was because I have seen a number of comments made by yourself, as well as similar comments made from other accounts, whereby if you step back it is evident you are trying to get the Muslims to become end users of these new fangled supposed shariah compliant finance initiatives. In any event this supposed sellout of a scholar doesn't make sense with regards to some of the statements he has made, he even accuses the other ulema of not doing their due diligence yet he creates his own strawman on the basis of one bank employee (I'm assuming phantom).
I'm just wondering how would any loan be transacted under Islamic law? If you loan me 100k dollars today and I pay you back over 20 years the same 100k, what's in it for you? Your money would have depreciated enormously.
You would still pay more for example 120k. But the 20k is counted as profit. The main difference is late payments need to be a flat fee and cannot compound with interest as far as I understand.
Very well and logically explained by the respected scholar , No need to bash him guys if u disagree with his explanation . If You don't like it go keep renting or find another way , khalaaas 👏🏼
This is a major problem. 2 wrongs doesn’t make a right. This man is a so called sheikh misleading people which is among the most dangerous thing for this ummah. If we claim we love the prophet Sallahualaihi wa salam then read this hadith. Abdullah ibn Amr reported: The Messenger of Allah, peace and blessings be upon him, said, “Verily, Allah does not withhold knowledge by snatching it away from his servants, but rather he withholds knowledge by taking the souls of scholars, until no scholar remains and people follow ignorant leaders. They are asked and they issue judgments without knowledge. Thus, they are astray and lead others astray.” Source: Ṣaḥīḥ al-Bukhārī 100, Ṣaḥīḥ Muslim 2673
You're likely saying this because you own a house on Mortgage and it makes you feel better that one in hundred scholars happens to agree with your POV. This is called forcing fatwas. There is no logical argument this sheikh made on his beliefs. The rules for interest are clear in hadiths. Saying or claiming otherwise is useless at that point.
It reminds me of the story of sabbath breakers. Well... In this case we must follow what we want to follow, right? Whatever your definition of riba is, I just want to remind you that riba is haram in Islam. Question what you pay, do more research. If you feel you are being involved in riba (the way you are considered involved), then say no to it.
Can the Shaykh explore this deeper? What about for example: - Late payments that inflict additional interest. - Amortization that prioritizes interest payoff before principal. - No risk from the bank's perspective as they have a lien on the asset. I like the simple analogy and explanation, but there are many more facets to a conventional mortgage.
Interest (riba) is on cash loan only Charging Extra money on cash loan is haram No doubt about it. Only the principal amount has to be returned. So if I give a person 20k dollars cash for 5 years, I can only ask for the principal to be returned ie 20k On the other hand if I give a 20k dollar car on loan to a person for 5 years, then in addition to my demand that the car be returned, I can ask monthly rent. This extra money is not interest. The person renting can show his desire to buy the car and I will say until you pay the 20 K, keep on paying the rent Thus in the mortgage, the bank buys car for you and ask you to pay rent till the principal is payed It is not interest even though the bank may call is interest It’s rent to own
I am not sure abt the system of banks but if the bank is buying a house for u and selling it to u in high price then it is totally acceptable. If banks allows i to pay in installments that is also okay. Thats what i understood.
Muslim bussiness in the west struggle to develop, for one to succeed financially borrowing from the banking system is a must it's purpose is to lend on interest, if there was no interest there would be no banks.
let's go through his example of buying chicken.. he is saying that 1st person is giving money to second one to buy chicken..now let's come to the context of mortgage..does any bank come to you and tell you take this money and buy a house.. does it makes any sense... the bank will give money to buy home..if I go to the bank... otherwise which bank is behind you and tell that here is the money go get a house...Another thing... quran is not based on Hanafi fiqh...Hanafi fiqh is a school of thought....May Allah guide us...
with respect it was just a simple example and it seems like you didn't understand the principle that he was demonstrating. Obviously the bank doesn't come to you. But isn't he right when he means that in reality you are initially acting as a representative because you are buying the house for yourself but it is actually the bank that owns the house until it is fully paid up and thats when you will get the deeds for the property and until then the bank is the REAL owner. They even state in so many mortage adverts " your home is at risk of possession if you do not keep up your mortgage repayments" and therefore you are not in debt in the ISLAMIC SENSE even though the banks calls it a debt or loan. please correct me if im wrong. His key argument and principle that he is applying is that the mortgage is not an ISLAMIC DEBT is derived from the fact that when the bank gives you authority or money to buy the house you are not permitted to do ANYTHING ELSE with this money as would be the case with a QARD (Islamic loan) given to you. However when the bank putsmoney in your account your are only allowed to buy the house and therefore because of the way the transaction is conducted means that in this deal you are in reality acting as agent for the bank to buy the house for yourself. As a result of this method their is not an islamic debt in the first place. Hence no debt means no Riba which seems to make perfect sense to me.
The Riba is simple and easy to understand..just calculate amount you are paying back to bank and can anyone say the huge amount paying back is not Interest ( to understand it commonsense is enough)our deen is simple and easy to understand.. it's straight forward....May guide our Ummah
Ashik Shajahan - his answer is a convoluted way of saying because mortgages are non-exploitative they are not usurious and thus don't constitute Riba. His conclusion, is, however, correct!
Stephen Connolly - I don't think that's his point. He's saying that the formalities for creating a debt (in Islamic terms) aren't there, so it's not debt and can't accrue riba. It would be perfectly possible to have a mortgage that is halal under Atabek's analysis, which is at the same time very exploitative: he's interested here in the legal technicalities, not the morality. Yours is a different argument, I believe, which you've explained in other comments - but Atabek doesn't use that argument, even in a convoluted way.
Even the current monetary system (Fiat Currency) is haraam, while we are debating mortgages.. very sad... please read "A Program for Monetary Reform" written in 1939... only an intrinsic value currency is allowed in Islam..... try to understand the big picture
Mohamad Ahsan - big assumptions here being made by you. Fiat money system is simply a tool to run an economic system and so it does not mean that it is forbidden to us as Muslims provided wealth is spread around and economic exploitation does not occur (or at least is not normally tolerated). Loan sharking and similar predatory practices is the best description of the term referred to in the Qur'an as Riba. Bank interest is neither usurious or Riba for this reason. I refer you to a scholar of economics and Islamic Finance, Dr Mohammad Omar Farooq who has published 2 seminal peer reviewed articles in the literature on the subject of Riba stating these points.
Whether you disagree or agree you need to be able to support your case and not just accept an opinion without having a justification for why because Allah will ask you and you alone with regards to your decision and how you made it. You can blame others but this wouldn't be sufficient as we all know because those destined for jahhnam will all say that such and such led me astray but Allah will ask did I not make it clear? If you can't justify your acceptance of an opinion or refute it then how will you be able to stand in the court of Allah. Muslim (1598) narrated that Jaabir said: The Messenger of Allah (blessings and peace of Allah be upon him) cursed the one who consumes riba and the one who pays it, the one who writes it down and the two who witness it, and he said: they are all the same. Shaykh Ibn ‘Uthaymeen (may Allah have mercy on him) said: That is, (they are all the same) in terms of being cursed, because they co-operated in that. Atabek is saying that the contract can be disregarded because of technicality however the hadith clearly states riba in the form of a contract. Also there is no such thing as coming up with a fatwa without have preconceived notions and going in to a topic with a neutral mind when a muslim persons life and all decisions are based on the quran and sunnah. His other point that the bank is buying the property for you and that you don't have a choice with what to do with the money that is given to you for the home is absolutely false. You can buy the home with a mortgage and sell it any time at a higher price and repay the bank with interest whilst retaining profits which is usury in its purest form. It is greed which caused our father Adam to be brought down from Jannah as shaytan whispered that the only tree which they couldn't eat from has something special about it. Adam had everything he needed in jannah but the greed of wanting more meant he gave in to temptation. Lets not let our greed take us down a path which leads to our demise. With regards to his point on tawkeel, they are two separate contracts and cannot be passed on. The example he provided was that 10,000 owed to him by John can be used to repay the money he owes. However it is not the responsibility of the person who gave him the money to chase it from John. It is his own responsibility to get the money from John to repay the money owed because they are two separate contracts. If however you appoint someone to collect money for you outside of any other financial arrangement you have with them then that's not a problem but you can't appoint them to collect the money that you owe them and diminish your responsibility to them. I request this channel to remove the video as it's spreading corruption amongst the Muslims by making permissible what has clearly been made haram. Surah al-Baqarah, verses 275 “Those who benefit from interest shall be raised like those who have been driven to madness by the touch of the Devil; this is because they say: "Trade is like interest" while God has permitted trade and forbidden interest. Hence those who have received the admonition from their Lord and desist, may keep their previous gains, their case being entrusted to God; but those who revert shall be the inhabitants of the fire and abide therein forever.” (275) “0, believers, fear Allah, and give up what is still due to you from the interest (usury), if you are true believers.” (278) “If you do not do so, then take notice of war from Allah and His Messenger. But, if you repent, you can have your principal. Neither should you commit injustice nor should you be subjected to it.” (279)
There are flaws in his principle argument about loan/debt and also about permissibility of having a dynamic repayment amount simply by "disclosing" the amount prior. In any riba transaction, the incremental amount is predisclosed and mutually agreed upon, but it's still riba and therefore still harãm. It's permissibility isn't determined by the KNOWLEDGE of the amount to be repaid. If I lend you $1,000 today on condition that you pay me $2,000 next week and we both consent to it, it's still harãm even if you know the amount. He hasn't grasped foundational fiqh in this regard. Conventional mortgages do not use the Wakala concept. But even if they did, the principle funds would still be a loan in the sense that the wakeel is responsible over that money and LIABLE to pay that back if he doesn't or is unable to carry out his duties for whatever reason. However, once a wakeel performs that immediate transaction, then he is no longer liable. So on what basis is a wakeel then being asked to pay back the money to the bank? He is applying the principles of murãbaha to a qard transaction. His logic/base understanding is questionable at best. As always, Allãh knows best. May He guide us all.
I can understand his point of view. With todays rent prices, paying rent to greedy landlords is more oppressive than buying a house with a mortgage too. May Allah swt guide us all.
It doesn't make a haram halal ! if you have any problem with your landlord don't forget you have rights ! It's an excuse to go for it and a complete trap...
you forget that rent money is a form of sadaqa. its money paid to Allah and you will receive the rewards from Allah. dont be deceived by the wicked scholars that permit the dirty Riba loans and mortgages ! Verily Allah has a reward for His true patient servants that truly fear their Lord. the money you pay rent has barakat; tue money you pay for a loan to bank has no barakat.
@@masyaf897 1. There are cheap and even free colleges. You can always explore those options. 2. Why are you assuming that any muslim in college has availed a riba loan? Some people pay with whatever halãl money Allãh has blessed them with. 3. Just because muslims do it doesn't mean Islam permits it. The same way, just because somebody sells drugs doesn't mean their government legalized it. Instead of looking to justify something harãm, understand that the act is still wrong. Maybe in an absolute emergency, like with pork or alcohol, you may exceptionally be excused. But this doesn't become the norm.
I am a muslim in the Fintech industry however not an islamic scholar (Just holding on to the 5 pillars of Islam) To me firstly, this Shaykh is just misinformed (by him saying that in his 2/3 months research, he had a chat with 1 banker) on the actual fundamentals and principles of how a bank work. Secondly in order for the bank to lend for the mortgage, the bank has to borrow from the central bank which is based on interest rates i.e riba (which is inter dependent on the US federal reserve interest rates as that’s how the fiat money system works which is based on debt financing and there again riba on top of riba) Thirdly, interest rates are not fixed throughout your mortgage tenure say 10-20 years which then translates back to an unspecified sum owing to the bank at the end of the loan tenure. Fourthly a muslim can’t in anyway make a decision without bringing our islamic beliefs and principle in order for us to make a conclusion. This is what is destroying the ummah as everyone act based on their own logical understanding based on the rule of law of the land as rules made by man are undoubtedly for a gain of only one particular party unlike rules and principles in the Quran which shows consistency, fairness and a far more superior fundamentals then any rules created by men. Here’s my personal opinion, mortgage is haram due to its coexistence with interest/riba. (Look through how the monetary system operate right from the 1970s in order to have a clearer understanding of how a bank works) Anyone who has made the final payment of their mortgage will also tell you that that was the biggest burden/suffering they have been carrying for a long time, even just a simple understanding from a laymen will agree that mortgage is the biggest suffering mankind is facing now hence it is definitely not following Islamic fundamentals as there is no verse in the Quran that allows suffering to mankind. With this, it is just plain simple that the mortgage we have now are not in accordance with Islam and therefore prohibited. The question is, what choice do we 1.6 billion muslims have in terms of getting a home for our family which to begin with is just a basic need? If there isn’t any other option or a strong opposition from the Ulama on riba then we can safely say there are 3 segments of muslim globally which are, those involved in riba and carry that sin with them, those who will keep on renting and those who are well off who can purchase a house without needing a mortgage from the bank. Allah hualam..
Regardless your expertise in finance and banking system, you are not scholarly authorised to do ijtihad (to give fatwas). If everyone starts doing so, then fitna shall spread everywhere around. Which is happening now with the help of so called "salafi" brothers when everyone does ijtihad on certain hadeeth and Quran as per their own perception.
You can't live the rest of your life just by rent. Rental prices are going up. And regardless of rental prices going up, you'll eventually need an actual home.
Read Quran 4:27-28 And 13:28 keep saying the word need to justify your wants. A home isn’t a must. Your not gonna die. All you need is a roof over your head, you don’t need 4 bedroom houses to survive. So make sure you know your needs from your wants. Water is a need. Not a 4 bedroom house. This life is a test to see whether your materialistic attitude is willing to disobey Allahs direct command or avoiding the haram and entering jannah. Don’t forget you will return to Allah and death will surly meet you one day.
@@ramalam1988 I think you're misinterpreting what I said. I will ask the following... When you will become old and weak, unable to work, will you pay for rent?
The way he explained actually makes sense. And with knowledge. I felt deep down the interest by a loan shark to someone for monetary loan had to be different to a modern day mortgage system but just didn't have the knowledge. It's brave brother. I hope people deal with this intellectualy and not emotionally
it makes no sense, ZERO, it's a loan that you will pay back with interest, he can play with words however he wants, but it does not change the fact that the bank gave you a loan to buy the house, and it's not doing it fi sabeel allah
@@bobomar5289 Can u explain the verse [2:275] about the consumption of interest? The Arabic word used is "ya'kulun" which means eat, consume, etc. If a person is borrowing money to buy a house, then how is s/he consuming that money? They have chosen to buy a house via a mortgage over time versus paying rent over the same time which is considered wasteful. WIll appreciate your view on this. Thanks.
@@yasser.yehiah you do not need to consume or spend the money, getting involved in a riba transaction by itself is a major sin. "Allah permitted trade and forbidden Riba" so for each transaction ask yourself is it a trade or riba? is the bank selling me a house or lending me money with interest? of course banks don't sell houses, they lend money and make profits from the money which is the basic definition of riba.
@@bobomar5289 There is a lot of debate on what riba really means, see the wiki entry on riba. Even the companion of the prophet Caliph Umar did not understand it as he says in a hadith. The Quran does say "eat, consume" not just borrow. Modernist Muslims believe riba means financial exploitation, which makes a lot more sense.
@@roberthannah7983 exploitation has nothing to do with riba, I can buy your house or car for dirt cheap if you're in a desperate need of cash, this is exploitation and taking advantage of your situation but the transaction itself is 100% halal as it falls under buying and selling, on the other hand I can lend you $10 million and ask for $1 only of "service fee", in this case there is no exploitation but the $1 is riba and the transaction is haram. As for the verse of quran "Eating riba" riba here is not a kind of food that we eat, in arabic language we say "eating haram" can mean eating porc or spending stolen money on food or clothing or cars or anything that benefits you from that Haram Money.
May Allah guide us and the sheikh onto the straight path. Not here to talk ill about anyone, let alone the sheikh. That being said, Riba is not only between You and the bank (even though that is enough to draw a conclusion). When you go to a bank, and ask them to buy a house on your behalf, with the clear intention to pay back overtime with a rate is a DEBT, otherwise they could never be repayment plan. Even more, the bank in the background, trades the whole projected value (like 300K expected value of the house in 20 years aka Collateral Debt Obligation = Loan + Projected interest) to another organization, which is a bigger Riba that originated from your action. It is Riba because they exchange cash for an expected amount of money. Examining the back contract is better than talking to a bank CEO / marketer etc ... I understand lot of our brothers and sisters got into Riba (May Allah give us the strength not to and accept our tawba for those who did), but we should not, in any circumstances look for ways to justify the banking and mortgage system. May Allah reward all the Sheikh for the good we getting from them, and forgive them all for their shortcomings and ours.
a weird thing or the weirdest irony is that everyone has come in with comments that are not clear-headed. they have come with preassumptions. the funniest irony IMO.
Don’t follow your desires and let Shayan make a clear sin (mortgage) fair seeming. This opinion is faulty, ignore it. Buy the houses cash or rent forever. There is no in between. Simple. Halal.
The prophet's condemnation of riba was to stop the exploitation of the poor by unregulated money lenders. Banks did not even exist at the time. This has nothing to do with interest in modern regulated financial markets - so I agree with the speaker. Read scholars Fazlur Rahman and Abdullah Saeed.
Banks are also technically unregulated. Regulation is a illusion. Fractional lending allows bank to create money out of thin air. They are causing inflation, that is a hidden RIBA on everyone. Current Western banking system is responsible for widening gap between rich and poor. The rich is still able to outbid the poor in a hot market, so wealth accumulates. Right now it is not advised to engage with any bubbles.
He is saying the bank gives you money in your account with instructions to find a house with their money, not your money. You then purchase the house and you pay them back the money for the house. So he is saying the money is not being lent directly to you on interest, but someone is buying you something with expectations you will pay them interest on that. It’s basically deluding yourself, and the vast majority of scholars will never accept this reasoning. It’s completely flawed.
@@snf321gotti6 When renting you aren’t paying interest my friend. This is why I left Islam. It’s just a false religion. It doesn’t work and destroys society.
The mental gymnastics he is using to get around the interest issue. The general prohibition on interest is to prevent making money from money without an assumption of risk. Bank lends money, bank wants it back regardless of what happens to your house or business value. Bank is just lending money without any assumption of risk in the underlying asset.
as muslims around the world are not unanimous about the fact that the riba in quran and interest of bank are the same. I think one should stay away from taking interest in a hope to get more reward in life after. by taking interest, one will put himself in question, so its better not get involved with this disputed things.
I can rent my home for $1,,400 for 15 years and walk away with nothing or pay mortgage at $1,100 for 15 years and own my property worth 150k. Sometimes.you have to do what’s best for your family. Allah knows best.
Is owning a riba house worth the war with Allah? A house is still a house, just a place to have shelter whether you rent or buy. And it's only temporary before we are called back to Allah. Think far and look wide ya akhi.
Yea you guys have a point. Well let me see, I can’t buy my house outright so I will have to sell or for close. Ok that part is done. Now I’m looking for home... for around 1 k a month I have to move out the suburbs and move inner city. Oh great I found a decent looking house surrounded by section 8 houses a neighbor that blasts music all day and a when I have problems the police gets there to late. I’m sure that this is what Allah wants. I’m sorry for sarcasm but what are my options for my family home. I agree that Reba is haram and we should not use it but I believe Allah is understanding and often forgiving. Inchallah he will know my intentions and not think I am waging war against him. Staghfarallah.
@@SAM-xi1ol That's the thing, if you think like "Yea but Allah will forgive me" then it's just like taking advantage of his mercy. Strive on not taking that loan.
@@SAM-xi1ol However here where I live we don't pay 1400$. I live in Europe and honestly I'm always used to pay 400 euros per month (I don't know how it is worth in dollars).
Interest is simply the time value of money, just like anything has a value, so does money. What confuses people is that the value of money is itself money (human minds are not good at recursive definitions). Some points to ponder upon: (1) If a mortgage is forbidden, then many other transactions should also be forbidden based on the same principle. For example, if Person A rents an apartment from Person B, Person A pays person B rent every month, which is the value of temporarily using the apartment for the duration of the lease. At the end of the lease period, Person A gives back the apartment to Person B. This is exactly analogous to: Person A goes to Bank and borrows 10,000 to buy a house. Person A buys a house and the house belongs to Person A. Person A pays 'rent' on the 10,000 until the end of the mortgage term, upon which Person A returns the 10,000 to the Bank. (2) The rent or the time value of money is so intertwined in the modern economy that it is hard to avoid it. Even more, some aspects of time value of money are very beneficial to the society as a whole. An example is innovation. How do you fund innovation if (1) innovators cannot profit from their inventions (2) owners of capital cannot venture it for gain? If mortgages involve riba, then venture capital is super riba! A venture capitalist typically looks for returns in multiples (i.e. 100% interest, 200% interest etc), while a bank's interest is normally in single digits or low double digits. On the flip side, innovation creates a lot of good for everyone (communications, medicines, vaccines, improved sanitation for the poor, etc) (3) When I buy a 600, 700 or 800 dollar phone, is that not riba on steroids? (4) I like the idea of protecting the poor and trying to create a more equitable society. And I don't like the fact that returns on capital are higher than those on labor - ironically, this also means that simply offering one's labor is riba - because you must get some return, i.e. interest, before offering your labor. However I think the solution is to create fairer societies by having laws that punish predatory behavior in the market place. For example, punish banks that mislead, force banks to offer financial counseling before giving mortgages, etc.
souverain1er - Riba simply means economic exploitation akin to loan sharking and similar predatory practices rather than heavily regulated bank and mortgage interest. Please refer to Dr Mohammad Omar Farooq's publications in the peer reviewed literature for more detail. Fi Amanillah.
As a student of finance and a muslim I disagree with the logic of the speaker..Money that gives birth to money is Riba giving time a value which is represented in the excess..What these scholars are doing is like the jews who laid the fishing nets on the Sabbath and then collect the fish after the Sabbath and say they have not worked on the Sabbath.. I am disappointed by this channel which seems to be attempting to justify that which is impermissible as permissible based on a convoluted basis..Shame on all of you!
@@tahirmansoor3886 where are you from ? Hanafy is a Sunny denomination, it is a school of thought, one of the five Hannifa is one of the Five imams of sunna. Hannafis are the followers of that school, it has nothing to do with race or arabs?!. Correct yourself. thanks
Let me finish you with my last question. Tell me one verse from quran where Allah have claimed or said about mohammad, that I have made this world because of you OR u are my most beloved one among all the other ppl on this planet.And tell me where is qalma in quran that says la ilaha illallah muhammadur rasulullah. Dont waist my time asking question who and what I am answer the question if u have sense to think or question.
A mortgage is a debt contract. Moreover, after this the whole world is going into digital/some form of crypto. Those types of currencies are not physical. But still if u pay more than you borrowed, physical or not, and then amount goes up due to time, the isn’t it still riba’? Wallaahua’lam
Alfian Abdul Halin - no, the increase on the principal is not the correct definition of Riba. Riba and usury is/are better defined as economic exploitation akin to loan sharking and similar predatory practices rather than heavily regulated bank and mortgage interest. Dr Mohammad Omar Farooq is the expert scholar in this area (Google him and his publications)!
In English law a mortgage is a type of ownership in property: the bank owns an 'interest' (not *that* sort of interest!) in your house. It means you can't sell the house even if you want to, without their permission, because they own a right over it.
@@mahak492 it depends how much your house appreciated in value. I know so many people where I live who have bought homes for 200k and sold them for 350-400k... We have to remember that houses appreciate in value.
It’s so easy to buy mortgage and to have every good house , but you gonna loose yours there. Your choice to do so,but don’t blame Allah that day when come back to him. This a good admonishment-for those who can reflect.....
He said Bank buys for 10,000 and sells you at 20,000 over a period. If this was the case then it is ok since you are paying the price for a product that has no Gharar/doubt. However in reality bank charges you variable interest which can change upwards or downwards hence the Gharar comes back in. In addition there are penalties if you want to pay early or you miss a payment. Regarding the government as a regulator comment to take care of banking: Government runs its own bank i.e. Reserve or Federal Bank so they are in on it, if not then you will have to ask the question do banks have any lobby powers over legilsators?
Law of Dharurah justifies consuming Haram in exceptional circumstances Similarly in times of food shortage, famine, A muslim is permitted to eat even Pork if nothing else is avaialble and only until Halal food becomes available But when you are eating the Pork, you dont need to fill up your plate or worse, licking your fingers after eating pork, you only consume as much is needed to survive. Why is it that Cash price does not equal Credit price? Because the Bank or Money lender is insuring themselves against Risk and gauranteeing for themselves a profit by offering *Credit over time* Only Allah determines whether something will increase or decrease in value over time Muslims, *do not play games with Riba* , Allah has warned the believers to take heed of a *War from Allah and His messenger against* those engaged in *Usuary* agreements 🤔🤔
I believe what he’s trying to explain is that when you purchase a home in installments it’s possible to make multiple payment modules based upon how long you take to pay this off. If 5 year then amount is 200k If 10 years then amount will be 250k Etc up to if you take 30 yrs then the amount will be 400k. The mechanism by which the payments will increase is a mathematical equation in which these payments are increasing is called “interest” by the banks. But is this mechanism valid? Is this type of trade valid where the price increases based off how long you take to pay it off? Then second is permissible and the first is permissible but the word “interest” throws off many. Im still not sure if this is valid because there is a hadith multiple contracts within one contract. But we have precedence in islam of this module being used. If someone does service for you then you increase the payment based on how fast they do the job. The more time they take the less the payment gets. And the mechanism put in play to increase the home payments based on how long you take is put in place because what a dollar is worth today might not what it’s worth 30 yrs from now. This is based upon how well the economy of that land is doing. Thats why there is a refinance option. Saying the mechanism put in place which increases these payments based on how long i take to pay this off was based on the conditions of the economy at that time. Now it seems the conditions are better and what i will end up paying in 30 yrs is too much. Its not justifiable and i am at a clear disadvantage. To remove that disadvantage the bank can refinance your contract where they only adjust that variable (known as interest rate in their terms) so what i end of paying is fair for both sides. Now when the interest rate increases in an economy the bank also has the right to refinance your home to maximize their benefit BUT they never do that why? Thats because the mechanism put in place is not to put you at a loss rather to protect themselves and even with a low interest rate they are protected because they will essentially always make more than the flat rate of the house they paid for when you financed it through them. Logically seems fair. Also the word loan or debt mentioned on the contract is simply means money you owe them for this property. It does not mean loan in the islamic sense which is money for nothing, you do whatever you want with that money and you return back more than taken amount if you are late from the consensually agreed upon date.
Could we improve the quality of the discussion here? Atabek isn't saying that riba is permissible. He's saying that because a mortgage borrower isn't free to do what they choose with their money, it isn't a 'qard' (loan) according to the Hanafi school. Then he says if it's not a qard, then there can't be riba. He repeatedly makes the point that words and labels are irrelevant - it's the underlying legal reality that matters. Could we debate that, rather than something that isn't the point he's making?
I find that there are few issues with his explanation. 1. The Shaykh mentioned that he has spoken to a Bank Officer (I assume it was Sales guy) and applied Hanafi fiqh against how the Officer explained to him. Shouldn't he be looking at an existing mortgage contract paper and validate it against Islamic jurisprudence? At the end of the day, what is written in the paper is what matters, not what a Bank Officer/ Sales people tells. 2. He also mentioned that if there is no debt, then there is no interest. I dont think it is accurate. There is a famous hadith about exchanging inferior dates for superior dates and Prophet Muhammad (may Allah bless him and grant him peace) told that this transaction was actually riba. 3. When someone defaults in paying an installment, every traditional Bank charges additional interest/money for it. The Shaykh hasnt mentioned anything about it.
@@profaisal I think you're beggaring the question: the question is precisely whether it's a loan of cash or not. If you really think it's a black and white question, consider the legal reality: The bank never gives you the cash: they transfer it to your solicitor who holds it on trust for the bank (ie, the bank remains the real owner). The bank requires the solicitor to use the cash to buy that specific house and nothing else. The bank can sue the solicitor (and get them struck off) if they give even a penny of the cash to you. If the sale falls through, the cash goes back to the bank. The customer is never allowed to touch the money, and it never hits their bank account. You may personally think the bank is, in fact, lending cash to the customer; but staying in touch with the legal reality, surely we can say it's at least a reasonable opinion that this is some other kind of transaction?
Unfortunately Muslim are far behind understanding the term Riba, which is prohibited. Riba was a (bad) custom of interest charging on borrowing money which pauperized the people. So if you want to know riba, you have learn Social history. Main characteristics of riba are 1. It is informal borrowing. 2. Interest rate was too high which pauperizes th borrower. So as long as interest rate is tolerable, it is not riba. In fact in holy quran there’s an instruction also in this regard,that is, the total repayment must not be more than double than the borrowed money. May allah help us understand the truth.
In Addition to that, characteristics of riba, riba is must to repay with borrowed money in any condition. Which is unjust. In modern banking if one face a bad condition Such as accident etc, the loan or interest is waived. Another mistake is profit in money deposit is considered as riba. Actually in the time of holy prophet only money borrowing was there. No money deposit system was in that time
Maasha Allah! Beautifully explained, so refreshing to note the learned Shaikhs research. His approach is in line with the hadith of Prophet Muhammad, (may peace & blessings be upon him) when he said "Give glad tidings, Do not drive people away, Make matters easy, do not make matters difficult".
Disgusting comments; please, disable the comment section. Don’t let hypocrites to rejoice in their sin. May Allah guide us all, the hypocrites and the humble, whoever they may be
you cant stay away from confusion that surrounds you. allah gave you a brain to think so use it to think about thinks. you may come to the wrong or right conclusion. but any conclusion is the right conclusion if you honestly believe it to be with all the information that you got at hand. in other words its is not permited to disbelief the existence of god/allah if you know about its existence but get a pass if there truly is no way of ever hearing or knowing about him.
So sad to see how people can twist and mangle things. For every desire, there will always be a proponent that will create arguments to cast doubt on that which Is simple to understand. --- But if I understand this correctly: I want a house; bank sends money to owner--- but because I never received the money, in hand, It Is not a true debt and the interest I pay Is not Riba. 🤦🏽♂️🤦🏽♂️🤦🏽♂️. What if my possession was limited? What if the money went to my aunt and not me? What if I did have possession but then changed my mind? What if there Is an overrage of payment to the owner and I get a refund back to my own account? What if on the Mortgage, I piggyback a Home Equity Line of credit only for the purpose of remodeling that same home -and money goes straight to contractor. Wait!!!! I have a better one!!!!!!! Why dont we stop playing with words and semantics and simply do what God makes clear??..to stay away from RIBA....instead of trying to find tiny loopholes for making what Is Haram into Halal. Let's increase our remembrance of GOD ....and stop swaying people into misguidance.
Dear Muslims, please refer to Dr Mohammad Omar Farooq's publications in the peer reviewed literature on the subject of Riba. Riba = economic exploitation not simple bank interest. It is more akin to loan sharking and similar sharp practices.
And he gets to live in the product ! A house with a whopping intrinsic value ! Wake up this guy is playing linguistic gymnastics to help fill the coffers of big corporations, at the expense of people's akhira.
If you take a mortgage for a house from the bank and you don’t pay the interest you can be sure they will take you to court. He starts off saying basically the bank is buying the house and you are just enabling them by taking the money to the seller. But in reality you owe a real debt to the bank, and it is based completely on compounded interest whose rates can even change during the period of the contract. Furthermore everyone in the chain is equally responsible and accountable, not just the bank. No scholarship of any kind can suddenly make what Allah has made haram, halal. This is the path of the prior ummah, twisting the letter of the law to suit their own purposes. إِنَّ ٱلَّذِینَ یَكۡتُمُونَ مَاۤ أَنزَلَ ٱللَّهُ مِنَ ٱلۡكِتَـٰبِ وَیَشۡتَرُونَ بِهِۦ ثَمَنࣰا قَلِیلًا أُو۟لَـٰۤىِٕكَ مَا یَأۡكُلُونَ فِی بُطُونِهِمۡ إِلَّا ٱلنَّارَ وَلَا یُكَلِّمُهُمُ ٱللَّهُ یَوۡمَ ٱلۡقِیَـٰمَةِ وَلَا یُزَكِّیهِمۡ وَلَهُمۡ عَذَابٌ أَلِیمٌ ﴿ ١٧٤ ﴾ • Muhsin Khan and Taqi-ud-Din al-Hilali: Verily, those who conceal what Allah has sent down of the Book, and purchase a small gain therewith (of worldly things), they eat into their bellies nothing but fire. Allah will not speak to them on the Day of Resurrection, nor purify them, and theirs will be a painful torment. (174) Al-Baqarah, Ayah 174
We are but *Travellers* on a *Journey* on this *Dunya* But most want to live like Pharoah ........ And ..... build their Houses on interest Do you know what is the ........ House .....of Pharaoh It is ........... A ........House .. Built on Interest, ..Total unjust slavery 🤔🤔
Assalamualaikum, Ancient Egyptians didn’t build houses on interest. I don’t see how you connect those two things. However I understand that you are just trying to state that many live in a state similar to that of Jahiliyah.
When you sign a mortgage contract bank includes in it a late fee for nonpayment on time, besides an interest. If you’ve skipped 2-3 months payments you have pay a late fee. Isn’t that riba, sheikh?
ok, look. i've agreed with this scholar on other issues as i don't follow any school of thought - just what makes sense. on this issue, his position is a bit shaky and it certainly lacked any quranic support (which is what this channel is supposed to be about). i personally feel that the rent-and-repay model or re-sale model provided by islamic banks is ok so long as you are on a fixed model (and not variable). i'm not saying the variable model is wrong - just that the fixed models look more solid from an islamic perspective. so while a little dissappointed with how he handled this issue, i feel this scholar handles the issue of the science of hadith very well. that's one place i do agree with him (or rather he agrees with me as i pretty much came to the hanafi conclusion through my own study whilst not knowing it was a hanafi position).
Agreed, perfect sense for those who have mortgages as it gives them some peace of mind. In day of judgment you can qoute this person and should be perfectly safe.
Muslim (1598) narrated that Jaabir said: The Messenger of Allah (blessings and peace of Allah be upon him) cursed the one who consumes riba and the one who pays it, the one who writes it down and the two who witness it, and he said: they are all the same
research needs a pre assumption it's called the hypothesis which is then proved right or wrong. So please spread good knowledge and then start discussing.
A hypothesis is not an assumption, it is simply a proposed explanation to use as a starting point of your research. An assumption is already arriving at the end, hypothesis is merely your starting point.
This is a matter of fatwa and takwa, fatwa is from mufti's which could be wrong and takwa is believing in Allah's word if you give or take riba Allah says you are going to war with me (Allah forgive me if I have said his saying wrong) may Allah subhana wata'alla guide us all to the straight path ameen
@@stillhere7193 islam is the same, but life has changed big time, different financial system and lifestyle. Muslim scholars use "measures = القياس" to match old time to modern time. For example, cocaine falls under Khamr=wine which is forbidden in islam, they had no cocaine back then.
aerolift I agree but Quran says anything that makes you loose your mind or make you high not being yourself is haram so cocain fall under that category
What is haram is the exchange of unequal amounts of money. Lending one amount and expecting a different one back is haram. Everything from interest to insurance falls in this category.
What is your source for this? Its just an assertion of scholars who do not understand finance, and then approve murabaha mortgages with deferred mark-up (unequal prices). As for insurance, it reduces gharar (risk and uncertainty) and that is a good thing.
Yes, that's more or less the the standard Hanafi definition of riba. The shaykh's point is that in reality the bank is not lending you any money at all: they're buying a house and selling it to you on the spot. So according to the shaykh (and according to the definition you reference) there's no riba.
I am not being critical of your point, but why would Allah really care about such definitional quibbling? I think scholars do not see the forest for the trees.
@@roberthannah7983 Well for one when people are buried deep in interest they ask God for help and so here it is. He has identified the core issue for us. It's prohibited in every Abrahamic religion. Jesus turned over the tables of Jews that were doing Usury siting in a Church.
Doesnt make any sense what this guy is saying. When you go to bnk they clearly tell you what you getting into and how many percent riba you will be paying.
Sheikh Atabek helped me regain my faith in Islam. I really thought I was crazy my whole life because so many general Islam practices simply made no sense to me, even when the reason was explained
Brother May Allah bless you, regarding the teachings of Islam we all need to agree on the point that whether or not we understand the full wisdom behind certain commandments or prohibitions that Allah is the most wise the all knowing the all MERCIFUL, This is the first foundation one has to firmly have conviction of, otherwise what trust will a person have in the legislation of Allah? take as an example the story of iblees and Adam, Allah commanded the angels and iblees to prostrate for a new creation of his, someone who has just come into existence, Iblees in his arrogance accused Allah of error in what he commanded him with as his words insinuate "I'm better than him" and as a result he earned an everlasting curse.
Allah knows best and check your brain at the door. Maybe if the rules make no sense you should be questioning the legitimacy of your faith to begin with or as the above commenter suggested just assume Allah is a jerk who makes rules that can’t be easily understood as to why or what Benefit they have. And live in fear that you will be cursed forever because it’s in the Quran and the Quran must always be right. If you are shopping around for scholars that have to do serious mental gymnastics to turn something that is obviously Harum even to me as a non believer into something Halal then you are on shaky ground bud. Good luck! 👍
I have to disagree with you brother. Paying cash for a house makes the most sense. All you have to do is use a mortgage calculator and you will see that Allah's plan is absolutely perfect. Many Americans have 30 year mortgages and pay hundreds of thousands in interest. Allah teaches Muslims to trust his invention called the calculator.
He lost me in the beginning when he said oh you have to go in without any preprogrammed mindset. Lol we ARE preprogrammed, there are certain things that are FIXED. You don't change that. Flipping reformists.
Are banks/financial institutions commercial/business/for-profit entities, or are they non-profit/charity organizations? How do banks make money for their operating expenses? How does a middle-class family go about buying a house without a mortgage, a car without a car loan, or get an interest-free credit card? Is the western banking system considered insensitive to Muslims and/or religion based discriminant?
Riba is money that increases after having paid the original amount due back. The definition of a mortgage is *legal agreement by which a bank, building society, etc. lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.* This means that mortgages follow the same rule as interest where an amount is constantly added on. This is Riba. Praise be to Allah. Riba means an increase in a particular item. The word is derived from a root meaning increase or growth. Allah, may He be exalted, says (interpretation of the meaning): *“Whatever you pay as interest so that it may increase (li yarbu) the wealth of people does not increase (fa la yarbu) in the sight of Allah”* [ar-Room 30:39]i.e it does not increase or rise in status before Allah. Riba originated among the people of the Jaahiliyyah; if a debt became due, they would say to him (the borrower): Give us one hundred (that is due, now), or increase it to one hundred and fifty (and pay later). Then when the one hundred and fifty became due, they would say: Give us one hundred and fifty (now), or increase it to two hundred (and pay later) -- and so on. Islam also forbade another kind of riba, namely riba al-fadl, which means adding to the amount when exchanging one item for another of the same type. So if gold is sold for gold, that is not permissible except like for like, hand to hand. Islam stipulated that the exchange should be done hand to hand and that the items or goods should be of the same quality. Whoever gives more or asks for more has engaged in riba. If he sells a saa‘ of wheat for two saa‘s (of the same commodity), even if it is hand to hand, he has engaged in riba. The principle of the circulation of capital exists in both the Muslim world and the non-Muslim world. What it means is circulating capital so that it will increase. The same applies to lending; they give money as a loan provided that it will increase when they get it back. Such transactions are undoubtedly riba. There is nothing wrong with the principle of the circulation of capital if the capital is invested in trade or business, and the profit is shared between the owner of the capital and the worker. This is called mudaarabah (profit sharing), and there is nothing wrong with it if the capital is kept distinct from the profit. If this money is deposited in a riba-based bank, then taking the interest is haraam and it is not permissible to consume it. It is not permissible to deal with these banks, and loans based on interest are not permissible. It is also not permissible to accept payment in that currency for any job if that job helps to support a system that is based on riba. With regard to using this currency (such as the dollar), there is nothing wrong with doing so in the case of necessity, even if that leads to helping to advance the economy of that country. That is because the dollar is accepted in most Muslim and other countries, so it is permissible to deal with it because of necessity. But if there is an Islamic currency that is used, then we can do away with the dollar. Praise be to Allaah. Riba is forbidden according to the Qur’aan and Sunnah, and definitive scholarly consensus. Whoever regards it as permissible is a kaafir, because the basic principle is that whoever rejects something on which there is obvious scholarly consensus is guilty of kufr. Shaykh al-Islam Ibn Taymiyah (may Allaah have mercy on him) said: The belief that the well-known obligations are obligatory and that the well-known prohibitions are forbidden is one of the most important basic principles of faith, and the one who rejects that is a kaafir according to scholarly consensus. Majmoo’ al-Fataawa, 12/497. Ibn Qudaamah (may Allaah have mercy on him) said: Whoever believes that something is permissible when there is consensus that it is forbidden and the ruling thereon is well known among the Muslims and the texts leave no room for doubt concerning it - such as pig meat, adultery and the like, concerning which there is no difference of scholarly opinion - is guilty of kufr. Al-Mughni, 12/276 Al-Nawawi (may Allaah have mercy on him) said: But nowadays Islam has spread and the knowledge that zakaah is obligatory is well known to the elite and commoners alike; the scholar and the ignorant are both aware of it. So no one has any excuse for misinterpreting (the texts) and denying it. The same applies to everyone who denies any matter of religion on which the ummah is agreed, if knowledge of it is widespread, such as the five daily prayers, fasting the month of Ramadaan, doing ghusl to cleanse oneself of janaabah (impurity following sexual activity), the prohibition on adultery, alcohol and marrying mahrams, and other rulings, unless he is new in Islam and does not know its rulings, in which case if he denies something out of ignorance he is not guilty of kufr… But with regard to matters on which there is consensus but which may only be known by those with specialized knowledge, such as the prohibition on being married to a woman and her paternal aunt or maternal aunt at the same time, or that the one who kills with intent cannot inherit (from his victim), or that the grandmother is entitled to one-sixth (of the estate), and other such rulings, then whoever denies them is not guilty of kufr, rather he is to be excused because knowledge of these things is not widespread among the common folk. Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) said: The ruling on riba is that it is haraam according to the Qur’aan and Sunnah and scholarly consensus. It is classified as one of the major sins, because Allaah says (interpretation of the meaning): *“but whoever returns (to Ribaa), such are the dwellers of the Fire - they will abide therein”* [al-Baqarah 2:275] *“And if you do not do it, then take a notice of war from Allaah and His Messenger”* [al-Baqarah 2:279] and because the Messenger of Allaah (peace and blessings of Allaah be upon him) cursed the one who consumes riba, the one who pays it, the two who witness it and the one who writes it down. So it is a major sin. There is scholarly consensus that it is forbidden, hence whoever denies that it is forbidden although he lives in a Muslim environment is an apostate, because this is one of the obviously forbidden things on which there is consensus. But if we say this, does that means that the scholars are agreed on all forms of riba? The answer is no; there is a difference of opinion concerning some forms of it. This is like what we have said about zakaah being obligatory according to consensus, but despite that there is no consensus on every form of it. They differed concerning the zakaah on camels and oxen that are used for farming or irrigation, and they differed concerning the zakaah on jewellery and the like, but in general the scholars are agreed that riba is haraam and is a major sin. Al-Sharh al-Mumti’ ‘ala Zaad al-Mustanqi’, 8/387 Based on that, it may be said: Whoever denies that riba is forbidden is a kaafir, because the fact that it is forbidden is one of the matters indicated by the texts, and the scholars are obviously agreed that it is haraam, and this is well known among the Muslims. But if he denies that a specific form of riba is forbidden, concerning which there is a difference of opinion among the scholars or there is no consensus that it is obviously forbidden, then he is not a kaafir; rather his case should be examined further. He may be a mujtahid who will be rewarded for his ijtihad, or he may be excused, or he may be an evildoer if by regarding this as permissible he is following his own whims and desires. And Allaah knows best. May Allaah send blessings and peace upon our Prophet Muhammad. And Allah knows best.
Since the time for complete payment and the amount is decided, then it is not usury. For one, the bank owns the house until you pay off the amount. Second, the money given to the buyer is not "loan", although it is termed that way. That is because you are not allowed to do anything with the money, except buy that particular house that was agreed upon with the bank. But when we "buy" the house, we don't own it, but the bank does. In effect, you have bought the house for the bank, and you'll purchase that house from the bank, whereby the bank keeps the profit, which is termed as interest, but is not usury. The bank is allowed to make money off of it because the bank owns the house, and you'll buy it from that bank. One possible objection would be that why is the bank selling their house for different prices based on the repayment time, and that whether this would be valid. According to Hanafis, it is valid as long as you chose one of the options as a repayment time along with a specific cost of the house. For scanned proof of this, refer to this scholar's own article: shaykhatabekshukurov.com/2016/07/22/scholars-declared-mortgages-to-be-interest-and-forbidden-making-it-impossible-for-muslims-to-own-their-own-home-but-they-couldnt-prove-it/
Sorry, bank does not own the house until you pay all due ---- lie. Title of the house is in your name and legally you own the house. That's why in the advertise bank says " Your house will be re-processed if you do not keep up with payment". They can take your house based of credit default and court decision to recover the outstanding amount.
a dimly lit room full of niggas - your analysis is wrong. Riba merely means economic exploitation and this is certainly not a function of mortgage transactions. Your knowledge is out of date.
Mortgages (other than sub-prime ones and similar) are non-exploitative and thus not usurious. Riba = economic exploitation, akin to loan sharking and similar sharp practices. Simple bank interest is highly regulated and thus not a form of Riba.
Riba will only make the rich wealthier because it's making money from money with absolutely no risk to the person giving the loan. The poor person that suffers is the one who's paying back more money then he bargained for. It's that simple it's a bad system that feeds of the less unfortunate. This is why it's Haram. Investment in the other hand is allowed why? Because the risk is to both parties and not just feeding the wealthy. How Allah has rightly so forbidden such a dishonest system. We as Muslims should stay away from this and try our best to be as close to our wonderful ❤️ religion as we can. May Allah make it easy for all of us ameen
The prophet said that at the end of times the halal will become haraam and the haraam halal! Whether dealing with muslims or non muslims interest is interest! Riba is haraam
Rasheed Gillespie if you have a mortgage you will say that. The truth is still the truth
Muslimah Shabnam please don't apply general statements into specifics. My cousin is a scholar from Hanafi Madhab and said almost the same thing about purchase of products, in that case was an used car.
Ie; If a dealership sells you a car on specific price which may be higher than initial amount but he lays it out on a monthly basis without informing you of the interests charged, it's fine. He also added when you are paying monthly installments on the car it has to belong to the dealership and not through a third-party like banks. Now he's not a scholar of Islamic Economics and I don't know his field of expertise but I believe he may have referred to other scholars or something regular scholars are supposed to know.
From your comment we can kind of predict that you may be from Ahle Sunnah or just a lay person. Please don't spread self taught teachings which creates more fitnas among the ummah. While you say not to follow school of thoughts yet borrowing rulings from left and right mostly from imam Shafi, Hanbal and Maliki while discarding the oldest, the majority and most prominent Imam Hanifa from times of the companions and not compiled 200-300 years later.
Alim Khan I find it quite disrespectful that you are judging others. The Quran was not revealed for a scholar! Allah SWT sent it down so that even a layman can understand the majority of it. Were the sahabas scholars when the verses of Riba were revealed! Riba is riba whether you are taking or giving it. All banks work on interest and even if they didnt mention interest or change the name it would still be interest! Islam is simple and first look at the fundamental source of guidance which is the Quran and Sunnah. If nothing was mentioned then I would be happy to look at a school of thought!
Alim Khan And trading is different to usury, Allah SWT has permitted trading but not usury. Theres a clear difference between profit and interest and may be you need to recheck the definitions. Peace
The reason I mention this is because the very enticing methodology has caused me to lose faith and tons of many others due to the acceptance of all Hadiths and the justifications made thereof to name a few not to mention coercion in religion.
There are 3 types of Islamic financing models used nowadays:
1. Murabaha.
2. Diminishing Musharaka (co-ownership with monthly installment combining rent and loan payback).
3. Ijara (rent to own).
Conventional mortgages are haraam. For instance an incident where an institution convinced an Office of controller, that there is no FUNCTIONAL difference between Murabaha and Conventional mortgage. So although in practicality it ends up looking the same, in theory it is not equal because "you do not want to open the floodgates to clear cut riba".
A murabaha is where the bank buys the property on behalf of the buyer and immediately sells it to the buyer on a higher price on installments. This is halal. However in a conventional mortgage the bank loans you money to buy the property in return for a larger amount of payback money. This is why conventional mortgage becomes haraam.
The most commonly used mode of islamic financing is the diminishing musharaka, this is a shared ownership where the bank and the buyer both buy the property and become the co-owners. The buyer moves in and pays in his installment - a combination of rent to the bank for the share of property still owned by the bank and paying back some of the loan. Therefore the monthly installments might have varying degrees - the proportion of rent might be higher initially but as you keep contributing money towards the purchase i.e. paying the loan back the proportion of rent becomes smaller.
The third mode of financing is ijarah, where the bank buys the property and you move in, keep paying fixed rents while at fixed time intervals buy a portion of the house. The bigger the portion of house you buy, the smaller your rent becomes.
All 3 modes of Islamic financing have a lot of problems.
Murabaha is not economically feasible for lending companies, although in theory it is the best, as they will run out of money to lend after the first few customers.
Diminishing musharaka and ijara, both dump complete responsibility on the buyer although in theory and Islamic pronciples as co-owners they need to share the costs of maintenance and upkeep with the buyer.
Bottom line - if you feel you have necessity i.e. hajah you may want to look at Islamic mortgages inspite of many non-Shariah compliant clauses.
If you have a greater necessity i.e. bigger hajah or even a dire necessity i.e. dharoorah and have no access to Islamic mortgages then you may look at conventional mortgages.
Every Muslim's situation is different and it is best that they talk to a scholar near them that they trust.
May Allah subhana ta'ala forgive me for if I have miscontrued.
Unfortunately, with both types of Islamic mortgages (also known as Shariah-compliant financing), the bank does not technically "possess" the house in the same way as with a conventional mortgage. Since the bank does not take ownership, it's not worth spending your time on this type of transaction. ITS HARAM...
If in doubt keep well away from a anything that is doubtful to be on the safe side. Keep your tawwakul in Allah and He will find a way out for you from every difficulty
Who says that? You can still proceed to do it, please don’t just say things
@@selinkorkmaz1019 no you can't,
These guys in this channel are just reformists in islam they are really hurting the ummah, do not take any of their propaganda.
As a student of knowledge, it is sad to see so many people reacting emotionally and going crazy. This is one of the reasons that we as an Ummah are so totally ignorant that we lack in even basic adab [manners] towards the people of knowledge. They spend years studying and some "mini-mufti" who never studied under a scholar comes along, throws out one Ayah/Hadith (totally out of context) thinking they know more. It's like a neurosurgeon who spent 15 years studying and training being told they are wrong by some dude who went to the library and picked up a book of neurosurgery.
At least listen to what this qualified scholar has to say rather than throwing quran ayah's completely out of context and ahadith. Why are your ayahs and ahadith out of context and not applicable?
1. Riba is an Arabic word. To say it equals "interest" [an English word] IN EVERY TRANSACTION is just an assumption. In fact the concept of Riba is misunderstood and there are multiple types of Riba and most people who comment on it and throw Quran and Hadith around are themselves totally ignorant of what riba means and it's types.
2. Riba applies to a loan - fulfilling the Islamic definition of "loan." Not necessarily the non-Islamic label of a "loan."
3. In Islam, a loan is something when you have complete control over it, to do as you please i.e. no restrictions on what you do with the money. As soon as there is a restriction - it is NO LONGER A QARDH [Loan in Islamic Terminology]
4. The (non-Muslim) bank might call it a "loan" but in Islam it is not actually a loan - because strings are attached. How?
5. I can buy, with the mortgage, ONLY 10 Downing Street. I cannot then decide to buy instead a boat, a car or even 11 Downing Street. There is a restriction.
6. If there is a RESTRICTION, it is NO LONGER a loan according to Islam. It is a Wikalah [representative] contract. You are now a Wakeel of the person/bank giving the money.
Seriously, people need to go and study fiqh - which actually puts the Quran and Sunnah into practical form. Instead of slandering scholars..... go and learn something instead of making up your own definitions of Riba and Loans etc.
I have no doubt whatsoever that the ignorant people will slander the people of knowledge because of the state this Ummah is in but eventually, the rewards for the people of knowledge is immense.
[2:269] He [Allah] grants wisdom to whom He pleases; and he to whom wisdom is granted indeed receives a benefit overflowing. But none will grasp the Message except men of understanding.
[39:9] ...Say: Are those equal, those who know and those who do not know? It is those who are endued with understanding that remember (Allah's Message).
[58:11] ...Allah will raise up to (suitable) ranks (and degrees) those of you who believe and who have been granted knowledge.
The Prophet [peace and blessings be upon him] said:
"Upon a person whom Allah desires good, He bestows the knowledge of faith." Bukhari and Muslim
"A person who follows a path for acquiring knowledge, Allah will make easy the passage to Paradise for him." - Muslim
A Student of Knowledge
TheSunnahTheBetter you have to substantiate that claim with evidence akhi/ukhti, otherwise its a mute point
It's not so-called "mini-muftis" that condemn the views expressed in this video, but respected Islamic scholars who are life-long experts in Islamic finance and are intimately familiar with not only Western financial practices, but how it relates to Islamic jurisprudence as well. Once that is understood, the speaker in the video might well be considered a "mini-mufti" by some when compared to the towering and informed scholars of Islamic finance. To dismiss the opinions of such scholars so easily is actually what amounts to poor adab...since they, not the speaker in the video, are analogous to the expert neurosurgeons.
inspiring islam ya Fulån, you can clearly see that this brother couldn't explain his points properly .. Looks like He's left the interviewer more confused!
You should read up what "mufti taqi uthmani" wrote in response to the shaykhs claims of it being permissible.
Worth a read, trust me. Completely demolished the debate.
والسلام عليكم و رحمة الله و بركاته
May Allah forgive us all and grant us all Jannatul-Firdaus. Ameen
I definitely understand his position. It can be alarming because we've been taught in a certain manner. There's many hadith that might seem contradictory when another hadith seems to be saying the opposite. But our religion was never rigid or finite. It does have flexibility in complex situations such as time, culture, geography, and yes even financial institutions. I have seen mortgages with a similar format. The lender says, I will buy this house from Thomas for a $100k lump sum, and resell it to Daisy for $110k as a discount if she pays a lump sum. If she makes payments, the price goes up to $135k. Daisy will pay monthly and a seemingly $100k home is paid for over the 20 year period for $135k. Your paycheck is doing the same thing. Just ask your HR department. Insurance? Same. Education? Same! Any paper currency is the exact same premise. Are you a renter? You're just paying a lender through another person for a service and dwelling you'll never actually own. When you purchase food, you eat it and benefit from the nutrients. You can eat it, or save it, or give it away, correct? Its yours. When you pay rent you can't. The very definition of 'usery'. You're paying for something that will never be yours no matter how long you pay for it. I think it's a welcomed prospective that should be given its merit. And continue to be researched. If you don't want to have a traditional mortvage, don't. Make duaa and be charitable so others don't feel compelled to. If that's your intention, to save people from sin, correct? Please lend interest free money and mortgages. Start an organization that does! Send a student to go study! Sponsor one. Solutions. Contributions. Not keyboard Ninjas, lol! Salaam! May Allah rectify our situations. Ameen.
Unfortunately, there are many flaws with this theory, simply from a financial perspective, ignoring the religious flaws. At 8.25, he says that the bank buys a house for 10,000 and I buy it off the bank for 20,000 so there is no interest. This would be true, except the bank never buys the house in real life, or else it would be an asset of the bank and this would have to go on their balance sheet as an asset. So they don't do this.
He also mentioned that if you stop making payments, the house would be repossessed by the bank, and this supposedly proves that it's not your property and you are buying it from the bank, at a higher price. This links to the first point. From a financial standpoint, this is totally wrong. The bank issues a loan, known as a security backed loan. This is a type of loan, which takes collateral as a security, to reassure the bank they can get their money back even if you lose your job for example. So the collateral in this instance is the house, so the house acts as a security. The minute you stop paying back the loan, the bank has the right to seize the collateral, ie the house. So this theory is invalid too.
Security backed loans can range from a variety of things. For example, I might need to borrow 4000, but the bank doesn't think I will be able to pay it back, so I give my car as a security. It doesn't mean the bank owns my car, as suggested in the video, it simply means the car will be seized if I can't pay back the loan so the bank can get the money back.
You can simply rent.
I am finding it difficult to believe what our brother is trying to convince. May Allah protect us all from RIBA. Aameen.
it is very difficult subject, the choice is yours. I woudln't risk it
Why?
JizakAllah .sheikh no nothing about this topic .you should learn from imran hosein.
I don't think the brother understands what he's saying either.
Yh m like how is debt different islamically,debt is debt basically
If you twist and play with words you can turn any haram into halal just like nations before us.
AMCO Home Improvements, LLC He is a Shia it's why
Thierno Bangoura he is shiya?
Our scholars? May Allah protect us from these so called scholars. You name it you find for both sides.
We should read and use our brains. Quran has everything
@Tareq Naser sunni or shia, its a jewish trait to follow a scholar over scripture
His a top sunni hanafi scholar and gives a good view. Ignorant people like you are pathetic.
One thing I need to say is that I researched this man and he is a Hanafi and from central Asia which in my view has the most authentic and classical Hanafi tradition. That thirst for logic, that tendency to use mind, still shines after hundreds of years...Abu Hanifa was truly an amazing man. This is why the Fatwa brigade, the "Tell me it is haram so I can condemn others" crowd don't/won't/can't understand him.
And you are the one to understand this? Please reflect on your comment and your reason for saying it. We are living in a time where many previously respected shyoukh have deviated and are catering to a watered down western version of Islam. Muslims must be cautious of falling into these traps of shaytaan. Stay away from mental gymnastics and complicated statements, especially when it comes to things that are forbidden by Allaah (e.g. interest). Go back to the roots of Islam of living a simple life within your means and don't chase after worldly desires (owning property you can't afford, cars you can't afford, etc)
A conventional loan is based on interest rate. Therefore, you can not guess how much you will pay in ten or twenty or thirty years. The reason being that interest rate changes over time.
How can you ask someone to buy a house for you and then say that it’s them who told you to buy a house for them and they will sell it to you. And that someone being a financial institution? You must be smarter than them because you are fooling them and benefitting from this transaction. Or are you?
If you didn’t borrow money to buy the house then who borrowed the money? Let’s say you didn’t borrow the money. So you won’t pay it back. Is the bank going to go after the original owner of the house or is the bank going to come after you in case of non-payment? Of course the bank will come after you because you were the one who paid the down payment for the house. You signed the papers for borrowing the money from the bank to buy a house. Buying a house can not be compared to buying a chicken, sir! Subhan Allah
You must have a house on mortgage. Hanafi mortgage.
Research the etymology of the word mortgage that should tick anyone off resembling a functional brain or a heart brewed with fear of Allah
@@awaqar2 there is a concept of Islamic mortgage to be fair. But yes, these guys are specifically talking about conventional mortgage. That's no doubt harãm
@Wasay N
And the fact that you are preemptively calling those with a different view the "fatwa brigade" showed your commitment to acceptance of others.
Islam is not based on mere logic or our ability to rationalize. It's based on what was revealed. The first revelation and instruction to our Prophet SAAWS was "READ"(/ recite) not "THINK and propogate your ill-researched views". While Hanafi school has its way and we respect it, how dare you disrespect those who actually say "bring us evidence from our Lord and His Messenger SAAWS"? Especially when making permissible something that's widely understood to have been explicitly made harãm. It's a justified resistance, isn't it?
Please grow up and stop dividing the Ummah further. It may have made sense to you and some layman who has not done any research, but respect those who have studied the subject and can dispute the points raised in the video. Trust me, there are flaws in his arguments
The following are some ways that Riba is different from Mortgage Interest:
~ With riba, the rich lender does not contribute to any business, he simply uses his money to grow his wealth.
With mortgage, the rich lender (or bank) at least mandates the borrower to get an appraisal, inspection and home insurance. They spend time to review those docs too. Should they not be compensated for putting in their time to review documents that benefit the home and the borrower?
~ With real riba, the lender lends money, and he gets back money with extra. Its money for money plus extra. Or gold for gold plus extra. With mortgage, the bank never hands you the money. Instead they hand the money to the seller and then make an agreement with you to transfer the house to you for a higher price. Its basically a product for money, like a trade, but not money for money.
~ With mortgage, the borrower and lender each put up their own money to fund the purchase therefore both having a stake in the house, both legally and practically. This is like a business partnership with the bank. With riba loans, no such partnerships exists where both parties are tied to a commodity.
Most of the people don't understand this concepts .
The financial contract and its obligations on both parties is one thing and then the actual Islamic concept of riba have to be understood.
The example I use is a landlord charges rent X amount per month over 25 yrs and the tennant owns nothing at the end.
The bank in partnership with the lender charges x amount for the share of the house per month over 25 yrs and the tennant keeps the house..
They will say the 1st one is fair and halal as it does not have the term interest in the contract. .
Then ask what is the difference rent and interest .
My beautiful sister in Islam.
Haram is haram and halal is Halal. It is a greatest challenge. From me in Ghana. Mr Mamadou Bendaloue
روى مسلم (1598) عَنْ جَابِرٍ، قَالَ: ( لَعَنَ رَسُولُ اللهِ صَلَّى اللهُ عَلَيْهِ وَسَلَّمَ آكِلَ الرِّبَا، وَمُؤْكِلَهُ، وَكَاتِبَهُ ، وَشَاهِدَيْهِ ) ، وَقَالَ: (هُمْ سَوَاءٌ) .
An advise to all brothers/sisters. Please disable comments for any future videos to eliminate time-wasting, destructive comments among each other. Brothers/sisters, when will you wake up? When will you stop attacking one another? How many times are you going to keep falling into your greatest enemy's trap, Satan? If you have something good to say, say it but if you have nothing good to say, be silent. We should be united as 1 PEOPLE.
He may be well educated in the field of Fıqh. However he knows nothing about banking system whose sole aim has been to exploit people. Let's say you couldn't pay the last two installments, do you think the bank will be understanding about your financial situation!?
Of course, no!
They will usurp your house along with your 238 months of payments.
What do you call this, an Islamic transaction!!!?
That's why his fatwa is very unfortunate!
@@hasanyildiz9364 The banking system helps savers by channeling their money to businesses and borrowers who can use the money - circulation of wealth as in Islam.
The guy said only if I posses that money it will be considered debt. I think a house has intrinsic value. You take possession of the house by occupying it. You are taking possession of something greater that cash money. You are taking possession for something that has intrinsic value. The bank requires you to leave the house when you don’t make payment. You don’t have full ownership of the house but you occupy it. You are still in debt with the bank that allows you to stay in the house.
He's trying to explain secured, and unsecured debt. However English is not his native tongue. By taking out secured debt (i.e: the Bank loans you money only based on the particular house you are buying, his arguement is it is not considered Riba). Whilst an unsecured debt, is considered Riba.
May Allah save us all from riba. I personally follow many renowned scholars and none allows it. He is the exception which I personally didn't like. Don't make excuses for people to get involved in riba.
Can u explain the verse [2:275] about the consumption of interest? The Arabic word used is "ya'kulun" which means eat, consume, etc. If a person is borrowing money to buy a house, then how is s/he consuming that money? They have chosen to buy a house via a mortgage over time versus paying rent over the same time which is considered wasteful. WIll appreciate your view on this. Thanks.
@@yasser.yehiah Modernist Muslims believe riba was about financial exploitation, not modern interest.
There's a difference between usury or ribaa and interact
Mortgage a house to take a loan and taking a housing loan
There's no sin in taking a loan to buy a house. Thus ie not usury
In the Hanafi madhab, it is allowed in some circumstances to find loopholes in fiqh to bring ease to the masses. The loophole, which is not the same thing as dispensation, means one can find a way to follow the Letter of the Law but forgo the Spirit of the Law. This is exactly the case with Islamic Financing. When Mufti Taqi Usmani permitted a loophole for financing (Murabaha, where the financier buys for the client and then sells at a higher price) in the 70's, he did it to bring TEMPORARY ease for the masses hoping that in the future, new financial developments in the Muslim lands would render this mechanism unnecessary. This obviously didn't happen. By the looks of this video, the concept Shaykh Atabek is using is very similar to Murabaha in Islamic Financing, so the loophole concept could also apply here. He uses Tawkeel and Murabaha as mechanisms to mask what is essentially Riba. From what I gather, the whole idea behind the video is that Mortgage from non-Islamic Banks is no different from the way a lot of Islamic Banks do it as they both use Tawkeel as a mechanism. While the mechanism slightly varies among Islamic Banks (and probably non-Islamic Banks as well), the Spirit of the Law is most closely followed when the risk is distributed among both parties. For example, the bank can end up buying a house, but the client can then reject the offer if he doesn't agree to the bank's higher selling price. This is what I understand from some knowledge I got from Ustad Salman Younis' courses on Seekers Hub. Please don't take what I have said to be a fatwa one way or another. I wrote this only to bring perspective on the issue. Everything good that I have said is from Allah, and everything else is from me. May Allah forgive us and grant us better understanding of the deen. Ameen.
@Hotboxing Fight Night Yes you're correct in everything you said. I think Murabaha contracts may be seen as a loophole (heela) when used for financing houses as it was traditionally used for a different purpose that was more equitable for both parties. But for financing houses, it gives preference to the financier in terms of risk.
The main issue with Islamic Financing in the US at least is the fact that they use Fannie Mae and Freddie Mac for funding in the backend, which restricts them to certain parameters when making a contract with you (whether from Musharaka or Murabaha model). That contract ends up having issues that don't make it halal in the truest sense. In Canada I believe Manzil uses private investors for funding their financing projects, so they are able to create a contract that is closer to the spirit of the law as they are not bound by restrictions from a third party. If they follow the procedure properly, when they purchase a property, they assume all risks before selling it to you.
Law of Dharurah justifies consuming Haram in exceptional circumstances
Similarly in times of food shortage, famine, A muslim is permitted to eat even Pork if nothing else is avaialble and only until Halal food becomes available
But when you are eating the Pork, you dont need to fill up your plate or worse, licking your fingers after eating pork, you only consume as much is needed to survive.
Why is it that
Cash price
does not equal
Credit price?
Because the Bank or Money lender is insuring themselves against Risk and gauranteeing for themselves a profit by offering *Credit over time*
Only Allah determines whether something will increase or decrease in value over time
Muslims, *do not play games with Riba* , Allah has warned the believers to take heed of a *War from Allah and His messenger against* those engaged in *Usuary* agreements
🤔🤔
People like to hide behind fatwas and sheikhs. They have already made up their mind to get a mortgage so now they desperately try to find any sheikh who will tell them that a conventional mortgage is permissible. While at the same time they ignore the other 99% of Ulema saying it’s Riba.
need and wants play will not help. House is a need ie darorah, that can be rented also while my own house is a want and is not a darorah at all. There can be exceptional cases but a general fatwa doesnt applies to all. Additionally no one is allowed to eat a plate full of pork and boast about it in case of daroarah ie those who are buying a house with this logic should limit to as tiny as they can but we see they buy mansions and boast about it. thats shame
May ALLAH SWT protects us and guid us to right path...as this end time is so tricky and dangerous ....ya ALLAH SWT protects ummah Ameen sum Ameen Ameen sum Ameen
With all due respect to everyone, I find that there are few issues with his explanation.
1. The Shaykh mentioned that he has spoken to a Bank Officer (I assume it was Sales guy) and applied Hanafi fiqh against how the Officer explained to him. Shouldn't he be looking at an existing mortgage contract paper and validate it against Islamic jurisprudence? At the end of the day, what is written in the paper is what matters, not what a Bank Officer/ Sales people tells.
2. He also mentioned that if there is no debt, then there is no interest. I dont think it is accurate. There is a famous hadith about exchanging inferior dates for superior dates and Prophet Muhammad (may Allah bless him and grant him peace) told that this transaction was actually riba.
3. When someone defaults in paying an installment, every traditional Bank charges additional interest/money for it. The Shaykh hasnt mentioned anything about it.
SubhanAllah - your 2nd point about the Hadith actually raises an interesting point. If the value of $10 diminishes due to inflation, and other external factors, then the $10 paid back many years later, is like the superior dates vs inferior dates. Although the numeric value has not changed (which is what many people are fixated on) the value of what $10 buys you certainly has. So, with that said - shouldn't we be focused on the real value instead? We're using fiat currency, the paper money itself is based on interest. Perhaps something we should collectively ponder on in more detail..
What he says is clear but very sophisticated and delicate. I prefer that he discusses it with other scholars from other schools of thoughts especially who are specialized in this very topic to see if he is missing any important aspects.
Allah awj asks us in the Quran to use our logic....getting a mortgage in a western country is more logical than renting a house or apartment because after say 15 years you will realize the difference: you continue to pay a huge portion of your income as monthly rents while a person you know becomes the owner of the house he lives in which means he owns hundreds of thousands of dollars. Thus I decided to get a mortgage to buy a house and when I become its owner after paying all the monthly installments of the mortgage I will sell it and give all the money to charity...or I continue to live in the same house but as a renter (tenant) and I can give the monthly rent as charity. It is very bad to live as a tenant because your landlord can access your rental unit under many excuses. Furthermore, you are unable to change anything in the rental unit for example to install a bathroom like the ones used in the Islamic countries....Living on your own property as a Muslim in a western country is too convenient.
@Hotboxing Fight Night
The main idea is not the toilet. It is freedom.
landlords treat tenants like slaves especially when there is a housing crisis.
Second, instead of giving hundreds of thousands to your landlord give them to poor Muslims even if it is not considered as charity.
So I have a clear question for you:
Which is better to give your landlord hundreds of thousands dollars or to give them to poor Muslims?
@Hotboxing Fight Night
Honey! I am not talking about my dream house.
I am talking about life necessities.
Renting even a small ugly apartment is slavery.
You Just like to argue.
I am living is a western country just because I am obliged and I do not have another alternative. And if you live in a western country then it its difficult to be a renter.
18:28
And keep yourself patient [by being] with those who call upon their Lord in the morning and the evening, seeking His countenance. And let not your eyes pass beyond them, desiring adornments of the worldly life, and do not obey one whose heart We have made heedless of Our remembrance and who follows his desire and whose affair is ever [in] neglect.
So according to this verse of Quran, any Muslim who choose to live in a non-Muslim country without a really valid reason is committing a big sin every moment.
A valid reason is to fear for your life or to fear from a serious harm.
Not obeying a verse in the holy Quran is like disobeying other verses.
You choose to stay in a western country then you are like someone who choose to disobey the verses that forbid adultery, consuming wine, homosexuality or stealing!
So the main issue is not RIBA! It is being obliged to live in bad circumstances.
Those Muslim who choose to live in a western country by their free will and to get their dream mundane life they do not need to discuss RIBA they need to discuss their ISLAM as a whole to see if they are real Muslims or just hypocrites.
@@aldallika3648 this is a ridiculous point you’re making. You are trying to try the rules of Allah for your benefit. By your understanding i can sell alcohol on the bases that i give the money i earn through that alcohol i give to charity because its better i give to poor people rather than major companies making money of it.
Ridiculous FEAR ALLAH. dont try and play games with the dean. Its worse to try and make something halal than to say you know this is a sin and i seek allah forgiveness because im weak. Dont try to be smart with allah like what the jews use to do.
@@themadakh3229
you made a logical mistake
I am obliged to live in an apartment or a house since I do not have any other choices because I can not live in a cave for free and I can not build a shed in the forest to live in it with my family.
BUT you are not obliged to sell alcohol to make money.
Use your logic to find an example that is similar to the situation we are discussing.
@@themadakh3229 arent God's rules for our benefit? or are we supposed to suffer? if so how do i learn to love suffereing and pain?
You have to watch this with an open mind and not with the preconception that the interest paid to the bank is Riba. Then look to see wether it’s permissible or not in Islam. Don’t put it in the category of Riba without investigating it.
I’m not sure myself! I haven’t got enough knowledge about it.
You are correct; exploitive riba as charged by unregulated moneylenders at the time of the prophet is not the same as interest charged by banks now.
From Abu Hurayrah : The Prophet, , said: "There will certainly come a time for mankind when everyone will take riba and if he does not do so, its dust will reach him." (Abu Dawud, Kitab al-Buyu', Bab fi ijtinabi al-shubuhat; also in Ibn Majah)
So this mean this is unavoidable? Even I will take interest?
dust meaning?
To all my brothers and sisters who are cursing Shaykh for this video, please seek some knowledge and sense. There were no banks in the era of Mohammad (pbuh). The ruling against interest was from an entirely different perspective, just to protect poor from rich, if the poor borrows some money, spends it and then has nothing to payback. But if a commodity is involved, this condition does not hold anymore. Here is my point: I pay house rent 1000 euros/month. If I live in my flat for 25 years, I would end up with zero savings. But the bank offers me a possibility to buy same house and payback 200k loan over 25 yrs. In return, bank charges me 1% interest (as a profit for the time value of money). After 25 years, the house would be mine and I can sell it to get some savings. Why would be Islam against this? Most of your comments below are nonsensical and a proof of misinterpreted following of an islamic ruling. I pray Allah to guide me if I am wrong. This is just my kind analysis. I think Shaykh is right in his research and opinion.
May Allah guide you to learn more about islam as i can see you’re more focused on this dunya with your saving , one last thing who told you you’re going to live until you clear that debt off
Your are gaining in this temporary dunya and going against Allah's rulings.
I dont understand why this matter of mortgage is still so difficult to understand for a big majority of muslims and almost all of them still buy the houses on mortgages. My understanding of the issue is very simple, Islam came to this world to fight off injustice (Zulm) and riba was a biggest zulm where people would never be able to pay off the principal although they were paying much more than the principal. In today's world it would be credit card debt, if you pay minimum then it will take you years to pay off the debt whereas you end up paying many times more than you owe. But with the house or car loan there is a fixed duration and at the end of that duration the car or house belongs to the customer. Then where is the Zulm (injustice) to that which Islam came to fight off. Just compare this to the situation when you rent for 20+ years and at the end of 20+ year you own nothing. I think this is just misunderstanding that stem from the word interest that is used for both profit and riba. Jazakallah khair to the Sheikh for beautifully explaining the difference and making the life easy (and guilt free) for people living on the west who have no option but to get the mortgage if they want to own the home.
Riba and profit don't mean the same thing, nor do they operate on the same principles.
If you're talking from a "life-is-too-difficult-for-me" perspective, then it's not to then be used to give a fatwa justifying the entire ummah to follow your ruling. In case your situation is at an extreme, let the exception not become the rule. Be careful what you say on a topic.
Riba is harãm. That's what is stated. It's not for us to use our limited logic to say that it's only due to zulm (even though that may very be a component) and therefore by eliminating some zulm riba is suddenly something good. Don't take lightly something Allãh has warned would culminate in Him waging war on them over. A little caution and humility might be in order here. With due respect, brother/sister (sorry I can't tell by your username. No offence)
Perfectly explained
A practical solution would be to take a basket of commodities I e flour, sugar, milk, rice, gasoline etc. Price it at the time of the loan e.g. valued at $50. Assuming loan amount is $1000 which will give you 20 units of the commodities. At a later period say at repayment the commodities are valued at $55. Then amount owed would be 55*20=$1100. The only problem is what would be the incentive for someone to lend the money and how to incentivise it. Parties could agree on an additional mark up of say x% on the basket at repayment to incentivise it.You don't have to change a whole financial system for it
You... Just described interest
I still believe that when you purchase a brand new car and you don't have any credit or are a first time buyer, they shouldn't charge you interest period! For what reason are they charging interest????? We have to be upright here and have a clear precise explanation as to why we need to build credit in the first place, then be in debt, then file for bankruptcy and then take financial education courses that tell you to pay cash if you can afford it, and don't get credit cards, because you don't need credit in the first place. If you can afford it and need it or want it, buy it, if not, forget it. I learned a lot on David Ramseys course on this after I filed for bankruptcy in 2015.
Mostafa Mansoori - you appear not to be operating in the real world. Nobody is going to lend anyone money (unless they are related etc) without charging for the use of that financial aid. And Islam doesn't advocate this approach either, except in exceptional circumstances. Making a charge for the use of money, provided the charge does not constitute economic exploitation, is quite acceptable.
@@stephenconnolly1830 Shalom
As a person who has a mortgage. He makes no sense to me. If you purchase a house you automatically get it at some interest rate. So if interest is the issue you have it from day one. Another issue with banks is compounded interest. Anytime you miss even one day of a payment that missed payment is subject to compound interest until that payment is made. So everyday the payment grows. So a 500 payment can turn into a 1000 payment easily.
Another issue is say you buy a house for 150,00. By the end of 30years you would have paid back 30,000+ unless you make extra payments to help reduce the interest. But the problem is that from the day you sign for the loan you are in a race against interest. Which is the problem.
I got my loan with my uncle before I was Muslim and he lives in the house but my name is still on the mortgage. If getting out of the loan wouldn't make my uncle homeless I would totally get out of it immediately.
Do not get a mortgage people!
What poor advice. We have a right to acquire property on non islamic lands
I went to a talk over the christmas break about riba from a sheikh who teaches in the masjid Al haram.
He said that due to riba being a major sin you can not use the fact that a house is a necessity in order to get a mortgage.
Riba is a major sin and it has been reported that the Prophet Muhammad (pbuh) curses the person that deals in riba or writes a contract of riba and it has also been reported that the Prophet even went to the level of saying that dealing with riba is worse then sleeping with your own mother.
SubhanAllah may Allah protect the ummah. This video seems as though he is going the long way round to make something haram, halal. I am not saying I am a sheikh just giving my point of view.
Allah knows best.
Masha Allah, good discussion. However, one question. The Sheikh gives very nice example " A Stone weight of Barley" - Here it is not an unknown transaction. But with regards to mortgage, will it not be unknown given the fact that you won't know what you are going to pay back exactly ? Like this year you could be paying for example 2.5% but next year or after 2 years you could be 3.5% or 1% depending on the interest rates prevalent at that time. With regards to stone, I agree although the exact weight is not known in kg or gms, but it is still a 'known' or rather 'fixed' weight which is not going to change but here in mortgage it will most defiantly change depending on the interest rates. Henceforth how can 'mortgage' be a KNOWN transaction ?
If bank buys the property for say 100k and sells you for 120k with condition that you have to pay back 120k in 25 years then it is still understood (as the Sheikh simplifies it nicely) and a 'known' transaction. But in mortgage it is not like that right. It is not a straight buy + sell. You won't know how much you are going to pay the bank in the end right so to me it appears Unknown and the analogy of the 'Stone Barley' is not applicable to conventional mortgages that are discussed here.
what about a fixed rate mortgage then?
You can choose a fixed rate then it is known if you want. That tends to be higher.
@@roberthannah7983 Peace, Shalom & Salaams, so which bank do you represent ?
@@omarsayid7228 I have never worked in a commercial bank, not sure of the point of your question. I have studied and worked in finance. The way a floating rate mortgage works is that at the renewal date you can pay off the remaining balance or renew at the new rate, so its a useful option for many people. Many of your friendly neighborhood banks offer them as well as the choice of a fixed rate.
@@roberthannah7983 The reason why I made that point was because I have seen a number of comments made by yourself, as well as similar comments made from other accounts, whereby if you step back it is evident you are trying to get the Muslims to become end users of these new fangled supposed shariah compliant finance initiatives.
In any event this supposed sellout of a scholar doesn't make sense with regards to some of the statements he has made, he even accuses the other ulema of not doing their due diligence yet he creates his own strawman on the basis of one bank employee (I'm assuming phantom).
I'm just wondering how would any loan be transacted under Islamic law? If you loan me 100k dollars today and I pay you back over 20 years the same 100k, what's in it for you? Your money would have depreciated enormously.
You would still pay more for example 120k. But the 20k is counted as profit. The main difference is late payments need to be a flat fee and cannot compound with interest as far as I understand.
@@zS39SBT4fe5Zp8Qexplain the difference between a flat fee or interest in your example? Because the only difference I see is the words being used.
Very well and logically explained by the respected scholar , No need to bash him guys if u disagree with his explanation . If You don't like it go keep renting or find another way , khalaaas 👏🏼
This is a major problem. 2 wrongs doesn’t make a right. This man is a so called sheikh misleading people which is among the most dangerous thing for this ummah. If we claim we love the prophet Sallahualaihi wa salam then read this hadith.
Abdullah ibn Amr reported: The Messenger of Allah, peace and blessings be upon him, said, “Verily, Allah does not withhold knowledge by snatching it away from his servants, but rather he withholds knowledge by taking the souls of scholars, until no scholar remains and people follow ignorant leaders. They are asked and they issue judgments without knowledge. Thus, they are astray and lead others astray.”
Source: Ṣaḥīḥ al-Bukhārī 100, Ṣaḥīḥ Muslim 2673
he isn't a respected scholar, he and shabir are reformists disguised as scholars.
You're likely saying this because you own a house on Mortgage and it makes you feel better that one in hundred scholars happens to agree with your POV. This is called forcing fatwas. There is no logical argument this sheikh made on his beliefs. The rules for interest are clear in hadiths. Saying or claiming otherwise is useless at that point.
@@atift5465 using Qur'an and sahih hadiths refute what has been said in the video.
@@atift5465 exactly
It reminds me of the story of sabbath breakers. Well... In this case we must follow what we want to follow, right? Whatever your definition of riba is, I just want to remind you that riba is haram in Islam. Question what you pay, do more research. If you feel you are being involved in riba (the way you are considered involved), then say no to it.
Can the Shaykh explore this deeper? What about for example:
- Late payments that inflict additional interest.
- Amortization that prioritizes interest payoff before principal.
- No risk from the bank's perspective as they have a lien on the asset.
I like the simple analogy and explanation, but there are many more facets to a conventional mortgage.
Interest (riba) is on cash loan only
Charging Extra money on cash loan is haram
No doubt about it. Only the principal amount has to be returned. So if I give a person 20k dollars cash for 5 years, I can only ask for the principal to be returned ie 20k
On the other hand if I give a 20k dollar car on loan to a person for 5 years, then in addition to my demand that the car be returned, I can ask monthly rent. This extra money is not interest.
The person renting can show his desire to buy the car and I will say until you pay the 20 K, keep on paying the rent
Thus in the mortgage, the bank buys car for you and ask you to pay rent till the principal is payed
It is not interest even though the bank may call is interest
It’s rent to own
Interesting opinion, Allah bless you
I am not sure abt the system of banks but if the bank is buying a house for u and selling it to u in high price then it is totally acceptable. If banks allows i to pay in installments that is also okay. Thats what i understood.
Muslim bussiness in the west struggle to develop, for one to succeed financially borrowing from the banking system is a must it's purpose is to lend on interest, if there was no interest there would be no banks.
you are not asked to be successful in business, you are asked to follow the rules of allah, success comes from allah arrazak
let's go through his example of buying chicken.. he is saying that 1st person is giving money to second one to buy chicken..now let's come to the context of mortgage..does any bank come to you and tell you take this money and buy a house.. does it makes any sense... the bank will give money to buy home..if I go to the bank... otherwise which bank is behind you and tell that here is the money go get a house...Another thing... quran is not based on Hanafi fiqh...Hanafi fiqh is a school of thought....May Allah guide us...
with respect it was just a simple example and it seems like you didn't understand the principle that he was demonstrating. Obviously the bank doesn't come to you. But isn't he right when he means that in reality you are initially acting as a representative because you are buying the house for yourself but it is actually the bank that owns the house until it is fully paid up and thats when you will get the deeds for the property and until then the bank is the REAL owner. They even state in so many mortage adverts " your home is at risk of possession if you do not keep up your mortgage repayments" and therefore you are not in debt in the ISLAMIC SENSE even though the banks calls it a debt or loan. please correct me if im wrong. His key argument and principle that he is applying is that the mortgage is not an ISLAMIC DEBT is derived from the fact that when the bank gives you authority or money to buy the house you are not permitted to do ANYTHING ELSE with this money as would be the case with a QARD (Islamic loan) given to you. However when the bank putsmoney in your account your are only allowed to buy the house and therefore because of the way the transaction is conducted means that in this deal you are in reality acting as agent for the bank to buy the house for yourself. As a result of this method their is not an islamic debt in the first place. Hence no debt means no Riba which seems to make perfect sense to me.
The Riba is simple and easy to understand..just calculate amount you are paying back to bank and can anyone say the huge amount paying back is not Interest ( to understand it commonsense is enough)our deen is simple and easy to understand.. it's straight forward....May guide our Ummah
Ashik Shajahan - his answer is a convoluted way of saying because mortgages are non-exploitative they are not usurious and thus don't constitute Riba. His conclusion, is, however, correct!
Stephen Connolly - I don't think that's his point. He's saying that the formalities for creating a debt (in Islamic terms) aren't there, so it's not debt and can't accrue riba.
It would be perfectly possible to have a mortgage that is halal under Atabek's analysis, which is at the same time very exploitative: he's interested here in the legal technicalities, not the morality.
Yours is a different argument, I believe, which you've explained in other comments - but Atabek doesn't use that argument, even in a convoluted way.
@@ashiksca how about the huge rent one pay to live in a house.. isnt that interest too ? Based on your comment
Even the current monetary system (Fiat Currency) is haraam, while we are debating mortgages.. very sad... please read "A Program for Monetary Reform" written in 1939...
only an intrinsic value currency is allowed in Islam..... try to understand the big picture
Mohamad Ahsan - big assumptions here being made by you. Fiat money system is simply a tool to run an economic system and so it does not mean that it is forbidden to us as Muslims provided wealth is spread around and economic exploitation does not occur (or at least is not normally tolerated). Loan sharking and similar predatory practices is the best description of the term referred to in the Qur'an as Riba. Bank interest is neither usurious or Riba for this reason. I refer you to a scholar of economics and Islamic Finance, Dr Mohammad Omar Farooq who has published 2 seminal peer reviewed articles in the literature on the subject of Riba stating these points.
Mohamad Ahsan gold bug
you tell them bro; they are falsifying the religion. this imam . are[ monafiq]
Please elaborate
How is fiat currency haram?
Whether you disagree or agree you need to be able to support your case and not just accept an opinion without having a justification for why because Allah will ask you and you alone with regards to your decision and how you made it. You can blame others but this wouldn't be sufficient as we all know because those destined for jahhnam will all say that such and such led me astray but Allah will ask did I not make it clear? If you can't justify your acceptance of an opinion or refute it then how will you be able to stand in the court of Allah.
Muslim (1598) narrated that Jaabir said: The Messenger of Allah (blessings and peace of Allah be upon him) cursed the one who consumes riba and the one who pays it, the one who writes it down and the two who witness it, and he said: they are all the same.
Shaykh Ibn ‘Uthaymeen (may Allah have mercy on him) said:
That is, (they are all the same) in terms of being cursed, because they co-operated in that.
Atabek is saying that the contract can be disregarded because of technicality however the hadith clearly states riba in the form of a contract. Also there is no such thing as coming up with a fatwa without have preconceived notions and going in to a topic with a neutral mind when a muslim persons life and all decisions are based on the quran and sunnah. His other point that the bank is buying the property for you and that you don't have a choice with what to do with the money that is given to you for the home is absolutely false. You can buy the home with a mortgage and sell it any time at a higher price and repay the bank with interest whilst retaining profits which is usury in its purest form.
It is greed which caused our father Adam to be brought down from Jannah as shaytan whispered that the only tree which they couldn't eat from has something special about it. Adam had everything he needed in jannah but the greed of wanting more meant he gave in to temptation. Lets not let our greed take us down a path which leads to our demise.
With regards to his point on tawkeel, they are two separate contracts and cannot be passed on. The example he provided was that 10,000 owed to him by John can be used to repay the money he owes. However it is not the responsibility of the person who gave him the money to chase it from John. It is his own responsibility to get the money from John to repay the money owed because they are two separate contracts. If however you appoint someone to collect money for you outside of any other financial arrangement you have with them then that's not a problem but you can't appoint them to collect the money that you owe them and diminish your responsibility to them.
I request this channel to remove the video as it's spreading corruption amongst the Muslims by making permissible what has clearly been made haram.
Surah al-Baqarah, verses 275
“Those who benefit from interest shall be raised like those who have been driven to madness by the touch of the Devil; this is because they say: "Trade is like interest" while God has permitted trade and forbidden interest. Hence those who have received the admonition from their Lord and desist, may keep their previous gains, their case being entrusted to God; but those who revert shall be the inhabitants of the fire and abide therein forever.” (275)
“0, believers, fear Allah, and give up what is still due to you from the interest (usury), if you are true believers.” (278)
“If you do not do so, then take notice of war from Allah and His Messenger. But, if you repent, you can have your principal. Neither should you commit injustice nor should you be subjected to it.” (279)
Jazaka'Allah Khair for the research and sharing. Alhamdulillah. May Allah guide us to the right path.
Ameen
🤣
There are flaws in his principle argument about loan/debt and also about permissibility of having a dynamic repayment amount simply by "disclosing" the amount prior. In any riba transaction, the incremental amount is predisclosed and mutually agreed upon, but it's still riba and therefore still harãm. It's permissibility isn't determined by the KNOWLEDGE of the amount to be repaid.
If I lend you $1,000 today on condition that you pay me $2,000 next week and we both consent to it, it's still harãm even if you know the amount. He hasn't grasped foundational fiqh in this regard.
Conventional mortgages do not use the Wakala concept. But even if they did, the principle funds would still be a loan in the sense that the wakeel is responsible over that money and LIABLE to pay that back if he doesn't or is unable to carry out his duties for whatever reason.
However, once a wakeel performs that immediate transaction, then he is no longer liable. So on what basis is a wakeel then being asked to pay back the money to the bank?
He is applying the principles of murãbaha to a qard transaction. His logic/base understanding is questionable at best.
As always, Allãh knows best. May He guide us all.
I can understand his point of view. With todays rent prices, paying rent to greedy landlords is more oppressive than buying a house with a mortgage too. May Allah swt guide us all.
Very well said.
It doesn't make a haram halal ! if you have any problem with your landlord don't forget you have rights !
It's an excuse to go for it and a complete trap...
you forget that rent money is a form of sadaqa. its money paid to Allah and you will receive the rewards from Allah. dont be deceived by the wicked scholars that permit the dirty Riba loans and mortgages ! Verily Allah has a reward for His true patient servants that truly fear their Lord. the money you pay rent has barakat; tue money you pay for a loan to bank has no barakat.
@@cahildben9982
So student loan is haram too cuz it involves paying interest same as loan for house
So why Muslims going to college/uni?
@@masyaf897
1. There are cheap and even free colleges. You can always explore those options.
2. Why are you assuming that any muslim in college has availed a riba loan? Some people pay with whatever halãl money Allãh has blessed them with.
3. Just because muslims do it doesn't mean Islam permits it. The same way, just because somebody sells drugs doesn't mean their government legalized it.
Instead of looking to justify something harãm, understand that the act is still wrong. Maybe in an absolute emergency, like with pork or alcohol, you may exceptionally be excused. But this doesn't become the norm.
I am a muslim in the Fintech industry however not an islamic scholar (Just holding on to the 5 pillars of Islam)
To me firstly, this Shaykh is just misinformed (by him saying that in his 2/3 months research, he had a chat with 1 banker) on the actual fundamentals and principles of how a bank work.
Secondly in order for the bank to lend for the mortgage, the bank has to borrow from the central bank which is based on interest rates i.e riba (which is inter dependent on the US federal reserve interest rates as that’s how the fiat money system works which is based on debt financing and there again riba on top of riba)
Thirdly, interest rates are not fixed throughout your mortgage tenure say 10-20 years which then translates back to an unspecified sum owing to the bank at the end of the loan tenure.
Fourthly a muslim can’t in anyway make a decision without bringing our islamic beliefs and principle in order for us to make a conclusion. This is what is destroying the ummah as everyone act based on their own logical understanding based on the rule of law of the land as rules made by man are undoubtedly for a gain of only one particular party unlike rules and principles in the Quran which shows consistency, fairness and a far more superior fundamentals then any rules created by men.
Here’s my personal opinion, mortgage is haram due to its coexistence with interest/riba. (Look through how the monetary system operate right from the 1970s in order to have a clearer understanding of how a bank works)
Anyone who has made the final payment of their mortgage will also tell you that that was the biggest burden/suffering they have been carrying for a long time, even just a simple understanding from a laymen will agree that mortgage is the biggest suffering mankind is facing now hence it is definitely not following Islamic fundamentals as there is no verse in the Quran that allows suffering to mankind. With this, it is just plain simple that the mortgage we have now are not in accordance with Islam and therefore prohibited.
The question is, what choice do we 1.6 billion muslims have in terms of getting a home for our family which to begin with is just a basic need? If there isn’t any other option or a strong opposition from the Ulama on riba then we can safely say there are 3 segments of muslim globally which are, those involved in riba and carry that sin with them, those who will keep on renting and those who are well off who can purchase a house without needing a mortgage from the bank.
Allah hualam..
Regardless your expertise in finance and banking system, you are not scholarly authorised to do ijtihad (to give fatwas). If everyone starts doing so, then fitna shall spread everywhere around. Which is happening now with the help of so called "salafi" brothers when everyone does ijtihad on certain hadeeth and Quran as per their own perception.
You can't live the rest of your life just by rent. Rental prices are going up. And regardless of rental prices going up, you'll eventually need an actual home.
Read Quran 4:27-28 And 13:28 keep saying the word need to justify your wants. A home isn’t a must. Your not gonna die. All you need is a roof over your head, you don’t need 4 bedroom houses to survive. So make sure you know your needs from your wants. Water is a need. Not a 4 bedroom house. This life is a test to see whether your materialistic attitude is willing to disobey Allahs direct command or avoiding the haram and entering jannah. Don’t forget you will return to Allah and death will surly meet you one day.
@@ramalam1988
I think you're misinterpreting what I said.
I will ask the following... When you will become old and weak, unable to work, will you pay for rent?
Read Quran 4:27-28 And 13:28 yea it’s called saving for retirement.
The way he explained actually makes sense. And with knowledge. I felt deep down the interest by a loan shark to someone for monetary loan had to be different to a modern day mortgage system but just didn't have the knowledge. It's brave brother. I hope people deal with this intellectualy and not emotionally
it makes no sense, ZERO, it's a loan that you will pay back with interest, he can play with words however he wants, but it does not change the fact that the bank gave you a loan to buy the house, and it's not doing it fi sabeel allah
@@bobomar5289 Can u explain the verse [2:275] about the consumption of interest? The Arabic word used is "ya'kulun" which means eat, consume, etc. If a person is borrowing money to buy a house, then how is s/he consuming that money? They have chosen to buy a house via a mortgage over time versus paying rent over the same time which is considered wasteful. WIll appreciate your view on this. Thanks.
@@yasser.yehiah you do not need to consume or spend the money, getting involved in a riba transaction by itself is a major sin.
"Allah permitted trade and forbidden Riba" so for each transaction ask yourself is it a trade or riba?
is the bank selling me a house or lending me money with interest?
of course banks don't sell houses, they lend money and make profits from the money which is the basic definition of riba.
@@bobomar5289 There is a lot of debate on what riba really means, see the wiki entry on riba. Even the companion of the prophet Caliph Umar did not understand it as he says in a hadith. The Quran does say "eat, consume" not just borrow. Modernist Muslims believe riba means financial exploitation, which makes a lot more sense.
@@roberthannah7983 exploitation has nothing to do with riba, I can buy your house or car for dirt cheap if you're in a desperate need of cash, this is exploitation and taking advantage of your situation but the transaction itself is 100% halal as it falls under buying and selling, on the other hand I can lend you $10 million and ask for $1 only of "service fee", in this case there is no exploitation but the $1 is riba and the transaction is haram.
As for the verse of quran "Eating riba" riba here is not a kind of food that we eat, in arabic language we say "eating haram" can mean eating porc or spending stolen money on food or clothing or cars or anything that benefits you from that Haram Money.
May Allah guide us and the sheikh onto the straight path. Not here to talk ill about anyone, let alone the sheikh. That being said, Riba is not only between You and the bank (even though that is enough to draw a conclusion). When you go to a bank, and ask them to buy a house on your behalf, with the clear intention to pay back overtime with a rate is a DEBT, otherwise they could never be repayment plan. Even more, the bank in the background, trades the whole projected value (like 300K expected value of the house in 20 years aka Collateral Debt Obligation = Loan + Projected interest) to another organization, which is a bigger Riba that originated from your action. It is Riba because they exchange cash for an expected amount of money. Examining the back contract is better than talking to a bank CEO / marketer etc ... I understand lot of our brothers and sisters got into Riba (May Allah give us the strength not to and accept our tawba for those who did), but we should not, in any circumstances look for ways to justify the banking and mortgage system. May Allah reward all the Sheikh for the good we getting from them, and forgive them all for their shortcomings and ours.
a weird thing or the weirdest irony is that everyone has come in with comments that are not clear-headed. they have come with preassumptions. the funniest irony IMO.
Don’t follow your desires and let Shayan make a clear sin (mortgage) fair seeming. This opinion is faulty, ignore it. Buy the houses cash or rent forever. There is no in between. Simple. Halal.
The prophet's condemnation of riba was to stop the exploitation of the poor by unregulated money lenders. Banks did not even exist at the time. This has nothing to do with interest in modern regulated financial markets - so I agree with the speaker. Read scholars Fazlur Rahman and Abdullah Saeed.
Banks are also technically unregulated. Regulation is a illusion. Fractional lending allows bank to create money out of thin air. They are causing inflation, that is a hidden RIBA on everyone. Current Western banking system is responsible for widening gap between rich and poor. The rich is still able to outbid the poor in a hot market, so wealth accumulates.
Right now it is not advised to engage with any bubbles.
He is saying the bank gives you money in your account with instructions to find a house with their money, not your money. You then purchase the house and you pay them back the money for the house. So he is saying the money is not being lent directly to you on interest, but someone is buying you something with expectations you will pay them interest on that. It’s basically deluding yourself, and the vast majority of scholars will never accept this reasoning. It’s completely flawed.
How is this different to renting a house from a landlord as you in you pay for the use of house .
@@snf321gotti6 When renting you aren’t paying interest my friend. This is why I left Islam. It’s just a false religion. It doesn’t work and destroys society.
The mental gymnastics he is using to get around the interest issue. The general prohibition on interest is to prevent making money from money without an assumption of risk. Bank lends money, bank wants it back regardless of what happens to your house or business value. Bank is just lending money without any assumption of risk in the underlying asset.
Honestly I totally disagree the way the Shaikh explained debt. Doesn’t make any sense according to economics.
You can do what I do. Tell a scholar you trust about this, ask HIS opinion, and then ask what he advices you
Is this Hiyal ? A Hanafi methodology in Ushul Fiqh. We need more Hanafi scholars in public. Very interesting discussion
Mashallah he made lot of Muslim life easy dessition about mortgage
One of the conditions of that kind of transaction is that bank has to legally buy house and not just give you money
Would Allah really care whether the bank bought the house or just had a lien on it? I think not!
as muslims around the world are not unanimous about the fact that the riba in quran and interest of bank are the same. I think one should stay away from taking interest in a hope to get more reward in life after. by taking interest, one will put himself in question, so its better not get involved with this disputed things.
I can rent my home for $1,,400 for 15 years and walk away with nothing or pay mortgage at $1,100 for 15 years and own my property worth 150k. Sometimes.you have to do what’s best for your family. Allah knows best.
Is owning a riba house worth the war with Allah? A house is still a house, just a place to have shelter whether you rent or buy. And it's only temporary before we are called back to Allah. Think far and look wide ya akhi.
Better paying 1400$ a month than declaring war against Allah and His Prophet. Look for your alkhirah.
Yea you guys have a point. Well let me see, I can’t buy my house outright so I will have to sell or for close. Ok that part is done. Now I’m looking for home... for around 1 k a month I have to move out the suburbs and move inner city. Oh great I found a decent looking house surrounded by section 8 houses a neighbor that blasts music all day and a when I have problems the police gets there to late. I’m sure that this is what Allah wants. I’m sorry for sarcasm but what are my options for my family home. I agree that Reba is haram and we should not use it but I believe Allah is understanding and often forgiving. Inchallah he will know my intentions and not think I am waging war against him. Staghfarallah.
@@SAM-xi1ol That's the thing, if you think like "Yea but Allah will forgive me" then it's just like taking advantage of his mercy. Strive on not taking that loan.
@@SAM-xi1ol However here where I live we don't pay 1400$. I live in Europe and honestly I'm always used to pay 400 euros per month (I don't know how it is worth in dollars).
Interest is simply the time value of money, just like anything has a value, so does money. What confuses people is that the value of money is itself money (human minds are not good at recursive definitions).
Some points to ponder upon:
(1) If a mortgage is forbidden, then many other transactions should also be forbidden based on the same principle. For example, if Person A rents an apartment from Person B, Person A pays person B rent every month, which is the value of temporarily using the apartment for the duration of the lease. At the end of the lease period, Person A gives back the apartment to Person B. This is exactly analogous to: Person A goes to Bank and borrows 10,000 to buy a house. Person A buys a house and the house belongs to Person A. Person A pays 'rent' on the 10,000 until the end of the mortgage term, upon which Person A returns the 10,000 to the Bank.
(2) The rent or the time value of money is so intertwined in the modern economy that it is hard to avoid it. Even more, some aspects of time value of money are very beneficial to the society as a whole. An example is innovation. How do you fund innovation if (1) innovators cannot profit from their inventions (2) owners of capital cannot venture it for gain? If mortgages involve riba, then venture capital is super riba! A venture capitalist typically looks for returns in multiples (i.e. 100% interest, 200% interest etc), while a bank's interest is normally in single digits or low double digits. On the flip side, innovation creates a lot of good for everyone (communications, medicines, vaccines, improved sanitation for the poor, etc)
(3) When I buy a 600, 700 or 800 dollar phone, is that not riba on steroids?
(4) I like the idea of protecting the poor and trying to create a more equitable society. And I don't like the fact that returns on capital are higher than those on labor - ironically, this also means that simply offering one's labor is riba - because you must get some return, i.e. interest, before offering your labor. However I think the solution is to create fairer societies by having laws that punish predatory behavior in the market place. For example, punish banks that mislead, force banks to offer financial counseling before giving mortgages, etc.
souverain1er - Riba simply means economic exploitation akin to loan sharking and similar predatory practices rather than heavily regulated bank and mortgage interest. Please refer to Dr Mohammad Omar Farooq's publications in the peer reviewed literature for more detail. Fi Amanillah.
@@stephenconnolly1830 No. Riba means interest in general.
As a student of finance and a muslim I disagree with the logic of the speaker..Money that gives birth to money is Riba giving time
a value which is represented in the excess..What these scholars are doing is like the jews who laid the fishing nets on the Sabbath and then collect the fish after the Sabbath and say they have not worked on the Sabbath.. I am disappointed by this channel which seems to be attempting to justify that which is impermissible as permissible based on a convoluted basis..Shame on all of you!
I have neutral opinion, but they spoke with proof, it is difficult subject
you are right.2nd he use the word Hanafy instead of muslim put a doubt in mind that he is targeting none arab section.Allah knows te best
@@tahirmansoor3886 where are you from ? Hanafy is a Sunny denomination, it is a school of thought, one of the five Hannifa is one of the Five imams of sunna. Hannafis are the followers of that school, it has nothing to do with race or arabs?!. Correct yourself. thanks
Let me finish you with my last question. Tell me one verse from quran where Allah have claimed or said about mohammad, that I have made this world because of you OR u are my most beloved one among all the other ppl on this planet.And tell me where is qalma in quran that says la ilaha illallah muhammadur rasulullah. Dont waist my time asking question who and what I am answer the question if u have sense to think or question.
@@fowadkhan5938 lean how to write properly so we can understand you clearly
Seeing the comments sadden me, how come a muslim still have "I'm the righteous one" mentality?
A mortgage is a debt contract. Moreover, after this the whole world is going into digital/some form of crypto. Those types of currencies are not physical. But still if u pay more than you borrowed, physical or not, and then amount goes up due to time, the isn’t it still riba’? Wallaahua’lam
Alfian Abdul Halin - no, the increase on the principal is not the correct definition of Riba. Riba and usury is/are better defined as economic exploitation akin to loan sharking and similar predatory practices rather than heavily regulated bank and mortgage interest. Dr Mohammad Omar Farooq is the expert scholar in this area (Google him and his publications)!
In English law a mortgage is a type of ownership in property: the bank owns an 'interest' (not *that* sort of interest!) in your house. It means you can't sell the house even if you want to, without their permission, because they own a right over it.
Stephen Connolly the question is, if i buy a house for 200k and end up pay the bank double that amount in interest is that considered Riba?
@@mahak492 it depends how much your house appreciated in value. I know so many people where I live who have bought homes for 200k and sold them for 350-400k...
We have to remember that houses appreciate in value.
If it looks like a loan, smells like a loan, then it probably is a loan with a bit extra on top.
Allah knows best.
It’s so easy to buy mortgage and to have every good house , but you gonna loose yours there.
Your choice to do so,but don’t blame Allah that day when come back to him.
This a good admonishment-for those who can reflect.....
He said Bank buys for 10,000 and sells you at 20,000 over a period. If this was the case then it is ok since you are paying the price for a product that has no Gharar/doubt. However in reality bank charges you variable interest which can change upwards or downwards hence the Gharar comes back in. In addition there are penalties if you want to pay early or you miss a payment.
Regarding the government as a regulator comment to take care of banking: Government runs its own bank i.e. Reserve or Federal Bank so they are in on it, if not then you will have to ask the question do banks have any lobby powers over legilsators?
In the US there are fixed rate mortgages loans, and prepayment penalties are out-lawed
I was waiting for him to justify about the part where bank ask more money (intrest) on the top of the money they give.
Law of Dharurah justifies consuming Haram in exceptional circumstances
Similarly in times of food shortage, famine, A muslim is permitted to eat even Pork if nothing else is avaialble and only until Halal food becomes available
But when you are eating the Pork, you dont need to fill up your plate or worse, licking your fingers after eating pork, you only consume as much is needed to survive.
Why is it that
Cash price
does not equal
Credit price?
Because the Bank or Money lender is insuring themselves against Risk and gauranteeing for themselves a profit by offering *Credit over time*
Only Allah determines whether something will increase or decrease in value over time
Muslims, *do not play games with Riba* , Allah has warned the believers to take heed of a *War from Allah and His messenger against* those engaged in *Usuary* agreements
🤔🤔
8:10
@@hurry2reason33 So are you supporting or opposing mortgages?
I believe what he’s trying to explain is that when you purchase a home in installments it’s possible to make multiple payment modules based upon how long you take to pay this off.
If 5 year then amount is 200k
If 10 years then amount will be 250k
Etc up to if you take 30 yrs then the amount will be 400k.
The mechanism by which the payments will increase is a mathematical equation in which these payments are increasing is called “interest” by the banks.
But is this mechanism valid? Is this type of trade valid where the price increases based off how long you take to pay it off?
Then second is permissible and the first is permissible but the word “interest” throws off many.
Im still not sure if this is valid because there is a hadith multiple contracts within one contract.
But we have precedence in islam of this module being used.
If someone does service for you then you increase the payment based on how fast they do the job.
The more time they take the less the payment gets.
And the mechanism put in play to increase the home payments based on how long you take is put in place because what a dollar is worth today might not what it’s worth 30 yrs from now.
This is based upon how well the economy of that land is doing.
Thats why there is a refinance option. Saying the mechanism put in place which increases these payments based on how long i take to pay this off was based on the conditions of the economy at that time.
Now it seems the conditions are better and what i will end up paying in 30 yrs is too much. Its not justifiable and i am at a clear disadvantage.
To remove that disadvantage the bank can refinance your contract where they only adjust that variable (known as interest rate in their terms) so what i end of paying is fair for both sides.
Now when the interest rate increases in an economy the bank also has the right to refinance your home to maximize their benefit BUT they never do that why?
Thats because the mechanism put in place is not to put you at a loss rather to protect themselves and even with a low interest rate they are protected because they will essentially always make more than the flat rate of the house they paid for when you financed it through them.
Logically seems fair.
Also the word loan or debt mentioned on the contract is simply means money you owe them for this property.
It does not mean loan in the islamic sense which is money for nothing, you do whatever you want with that money and you return back more than taken amount if you are late from the consensually agreed upon date.
Could we improve the quality of the discussion here? Atabek isn't saying that riba is permissible. He's saying that because a mortgage borrower isn't free to do what they choose with their money, it isn't a 'qard' (loan) according to the Hanafi school. Then he says if it's not a qard, then there can't be riba. He repeatedly makes the point that words and labels are irrelevant - it's the underlying legal reality that matters. Could we debate that, rather than something that isn't the point he's making?
I find that there are few issues with his explanation.
1. The Shaykh mentioned that he has spoken to a Bank Officer (I assume it was Sales guy) and applied Hanafi fiqh against how the Officer explained to him. Shouldn't he be looking at an existing mortgage contract paper and validate it against Islamic jurisprudence? At the end of the day, what is written in the paper is what matters, not what a Bank Officer/ Sales people tells.
2. He also mentioned that if there is no debt, then there is no interest. I dont think it is accurate. There is a famous hadith about exchanging inferior dates for superior dates and Prophet Muhammad (may Allah bless him and grant him peace) told that this transaction was actually riba.
3. When someone defaults in paying an installment, every traditional Bank charges additional interest/money for it. The Shaykh hasnt mentioned anything about it.
The fact that this man is not acknowledging borrowed money as borrowed money, shows how out of touch from reality he is.
If what he says is true to the teachings of Hanafi school, then please provide evidence. Evidence from Quran and Sunnah.
@@profaisal I think you're beggaring the question: the question is precisely whether it's a loan of cash or not. If you really think it's a black and white question, consider the legal reality:
The bank never gives you the cash: they transfer it to your solicitor who holds it on trust for the bank (ie, the bank remains the real owner). The bank requires the solicitor to use the cash to buy that specific house and nothing else. The bank can sue the solicitor (and get them struck off) if they give even a penny of the cash to you. If the sale falls through, the cash goes back to the bank. The customer is never allowed to touch the money, and it never hits their bank account.
You may personally think the bank is, in fact, lending cash to the customer; but staying in touch with the legal reality, surely we can say it's at least a reasonable opinion that this is some other kind of transaction?
Unfortunately Muslim are far behind understanding the term Riba, which is prohibited. Riba was a (bad) custom of interest charging on borrowing money which pauperized the people. So if you want to know riba, you have learn Social history. Main characteristics of riba are 1. It is informal borrowing. 2. Interest rate was too high which pauperizes th borrower. So as long as interest rate is tolerable, it is not riba. In fact in holy quran there’s an instruction also in this regard,that is, the total repayment must not be more than double than the borrowed money. May allah help us understand the truth.
In Addition to that, characteristics of riba, riba is must to repay with borrowed money in any condition. Which is unjust. In modern banking if one face a bad condition Such as accident etc, the loan or interest is waived. Another mistake is profit in money deposit is considered as riba. Actually in the time of holy prophet only money borrowing was there. No money deposit system was in that time
Maasha Allah!
Beautifully explained, so refreshing to note the learned Shaikhs research. His approach is in line with the hadith of Prophet Muhammad, (may peace & blessings be upon him) when he said "Give glad tidings, Do not drive people away, Make matters easy, do not make matters difficult".
Disgusting comments; please, disable the comment section. Don’t let hypocrites to rejoice in their sin. May Allah guide us all, the hypocrites and the humble, whoever they may be
Stay away from confusion you will be saved
you cant stay away from confusion that surrounds you. allah gave you a brain to think so use it to think about thinks. you may come to the wrong or right conclusion. but any conclusion is the right conclusion if you honestly believe it to be with all the information that you got at hand. in other words its is not permited to disbelief the existence of god/allah if you know about its existence but get a pass if there truly is no way of ever hearing or knowing about him.
Adel Dautovic ok we will try and stay away from you. Please don’t appear on TH-cam ever!!
cosmic mutant that’s why we have Quran and the sunna that is clear as day and night anything other than that is confusion
Siddiqur Rahman please do
So sad to see how people can twist and mangle things. For every desire, there will always be a proponent that will create arguments to cast doubt on that which Is simple to understand. --- But if I understand this correctly: I want a house; bank sends money to owner--- but because I never received the money, in hand, It Is not a true debt and the interest I pay Is not Riba. 🤦🏽♂️🤦🏽♂️🤦🏽♂️. What if my possession was limited? What if the money went to my aunt and not me? What if I did have possession but then changed my mind? What if there Is an overrage of payment to the owner and I get a refund back to my own account? What if on the Mortgage, I piggyback a Home Equity Line of credit only for the purpose of remodeling that same home -and money goes straight to contractor. Wait!!!! I have a better one!!!!!!! Why dont we stop playing with words and semantics and simply do what God makes clear??..to stay away from RIBA....instead of trying to find tiny loopholes for making what Is Haram into Halal. Let's increase our remembrance of GOD ....and stop swaying people into misguidance.
Dear Muslims, please refer to Dr Mohammad Omar Farooq's publications in the peer reviewed literature on the subject of Riba. Riba = economic exploitation not simple bank interest. It is more akin to loan sharking and similar sharp practices.
Yes I agree
If you want to do haram then do it in your own terms. Don’t try to misinterpret what Allah already said prohibited.
I think he means he don't borrow cash physically he is having a product brought for him and he pays extra on the value of the house.
Where is risk and reward in case of loss or gain
And he gets to live in the product ! A house with a whopping intrinsic value ! Wake up this guy is playing linguistic gymnastics to help fill the coffers of big corporations, at the expense of people's akhira.
If you take a mortgage for a house from the bank and you don’t pay the interest you can be sure they will take you to court. He starts off saying basically the bank is buying the house and you are just enabling them by taking the money to the seller. But in reality you owe a real debt to the bank, and it is based completely on compounded interest whose rates can even change during the period of the contract. Furthermore everyone in the chain is equally responsible and accountable, not just the bank. No scholarship of any kind can suddenly make what Allah has made haram, halal. This is the path of the prior ummah, twisting the letter of the law to suit their own purposes. إِنَّ ٱلَّذِینَ یَكۡتُمُونَ مَاۤ أَنزَلَ ٱللَّهُ مِنَ ٱلۡكِتَـٰبِ وَیَشۡتَرُونَ بِهِۦ ثَمَنࣰا قَلِیلًا أُو۟لَـٰۤىِٕكَ مَا یَأۡكُلُونَ فِی بُطُونِهِمۡ إِلَّا ٱلنَّارَ وَلَا یُكَلِّمُهُمُ ٱللَّهُ یَوۡمَ ٱلۡقِیَـٰمَةِ وَلَا یُزَكِّیهِمۡ وَلَهُمۡ عَذَابٌ أَلِیمٌ ﴿ ١٧٤ ﴾
• Muhsin Khan and Taqi-ud-Din al-Hilali:
Verily, those who conceal what Allah has sent down of the Book, and purchase a small gain therewith (of worldly things), they eat into their bellies nothing but fire. Allah will not speak to them on the Day of Resurrection, nor purify them, and theirs will be a painful torment. (174)
Al-Baqarah, Ayah 174
Look and pay attention how he is trying not to mention the Commands of Allah from the Qur'an. Wicked men are trying hard to deceive the masses.
I’d rather be homeless here then be victim of hell fire. Usury is prohibited period.
We are but *Travellers* on a *Journey* on this *Dunya*
But most want to live like Pharoah
........ And
..... build their
Houses on interest
Do you know what is the
........ House
.....of Pharaoh
It is
........... A
........House
.. Built on Interest,
..Total unjust slavery
🤔🤔
Assalamualaikum, Ancient Egyptians didn’t build houses on interest. I don’t see how you connect those two things. However I understand that you are just trying to state that many live in a state similar to that of Jahiliyah.
Out of all this confusion I wish Islamic financing go easier on Muslims instead of asking 30% down and so many confusing terms and conditions
When you sign a mortgage contract bank includes in it a late fee for nonpayment on time, besides an interest. If you’ve skipped 2-3 months payments you have pay a late fee. Isn’t that riba, sheikh?
@Hotboxing Fight Night
There is exception though, charging late fee in such a way that the charged extra goes to Sadaqah. Then it's not riba.
ok, look. i've agreed with this scholar on other issues as i don't follow any school of thought - just what makes sense. on this issue, his position is a bit shaky and it certainly lacked any quranic support (which is what this channel is supposed to be about).
i personally feel that the rent-and-repay model or re-sale model provided by islamic banks is ok so long as you are on a fixed model (and not variable). i'm not saying the variable model is wrong - just that the fixed models look more solid from an islamic perspective.
so while a little dissappointed with how he handled this issue, i feel this scholar handles the issue of the science of hadith very well. that's one place i do agree with him (or rather he agrees with me as i pretty much came to the hanafi conclusion through my own study whilst not knowing it was a hanafi position).
What he is saying makes perfect sense. Subhanallah!
@Hotboxing Fight Night what are those things
Agreed, perfect sense for those who have mortgages as it gives them some peace of mind. In day of judgment you can qoute this person and should be perfectly safe.
Interviewer asks great questions
Conclusion: riba is bussines. You can fool someone but you cant fool allah.
dear, do some research first. Look at the scenarios, technicalities and then make an opinion.
Muslim (1598) narrated that Jaabir said: The Messenger of Allah (blessings and peace of Allah be upon him) cursed the one who consumes riba and the one who pays it, the one who writes it down and the two who witness it, and he said: they are all the same
research needs a pre assumption it's called the hypothesis which is then proved right or wrong. So please spread good knowledge and then start discussing.
A hypothesis is not an assumption, it is simply a proposed explanation to use as a starting point of your research. An assumption is already arriving at the end, hypothesis is merely your starting point.
This is a matter of fatwa and takwa, fatwa is from mufti's which could be wrong and takwa is believing in Allah's word if you give or take riba Allah says you are going to war with me (Allah forgive me if I have said his saying wrong) may Allah subhana wata'alla guide us all to the straight path ameen
I am pretty much confident that we live in a time full confusion. Like the prophet already told us.
I think we live in a different time therefore we must unerstand the rules to match modern life.
aerolift Islam is same now as it was 14000 years ago
Command from Allah is still valid when he cursed and proclaim war against those who take interest
@@stillhere7193 islam is the same, but life has changed big time, different financial system and lifestyle. Muslim scholars use "measures = القياس" to match old time to modern time. For example, cocaine falls under Khamr=wine which is forbidden in islam, they had no cocaine back then.
aerolift I agree but Quran says anything that makes you loose your mind or make you high not being yourself is haram so cocain fall under that category
What is haram is the exchange of unequal amounts of money. Lending one amount and expecting a different one back is haram. Everything from interest to insurance falls in this category.
tats very wrong definition. I suggest you to read more
What is your source for this? Its just an assertion of scholars who do not understand finance, and then approve murabaha mortgages with deferred mark-up (unequal prices). As for insurance, it reduces gharar (risk and uncertainty) and that is a good thing.
Yes, that's more or less the the standard Hanafi definition of riba. The shaykh's point is that in reality the bank is not lending you any money at all: they're buying a house and selling it to you on the spot. So according to the shaykh (and according to the definition you reference) there's no riba.
I am not being critical of your point, but why would Allah really care about such definitional quibbling? I think scholars do not see the forest for the trees.
@@roberthannah7983 Well for one when people are buried deep in interest they ask God for help and so here it is. He has identified the core issue for us. It's prohibited in every Abrahamic religion. Jesus turned over the tables of Jews that were doing Usury siting in a Church.
Misleading information. Making haram, halal for the benefit of oneself.
It is no doubt haraam. But your money today is also haram. There is no intrinsic value it paper money. So really you shouldn't accept being paid...
Ridiculous comparison, go make a cup of tea or something
Doesnt make any sense what this guy is saying.
When you go to bnk they clearly tell you what you getting into and how many percent riba you will be paying.
Sheikh Atabek helped me regain my faith in Islam. I really thought I was crazy my whole life because so many general Islam practices simply made no sense to me, even when the reason was explained
Brother May Allah bless you, regarding the teachings of Islam we all need to agree on the point that whether or not we understand the full wisdom behind certain commandments or prohibitions that Allah is the most wise the all knowing the all MERCIFUL,
This is the first foundation one has to firmly have conviction of, otherwise what trust will a person have in the legislation of Allah? take as an example the story of iblees and Adam, Allah commanded the angels and iblees to prostrate for a new creation of his, someone who has just come into existence, Iblees in his arrogance accused Allah of error in what he commanded him with as his words insinuate "I'm better than him" and as a result he earned an everlasting curse.
Allah knows best and check your brain at the door. Maybe if the rules make no sense you should be questioning the legitimacy of your faith to begin with or as the above commenter suggested just assume Allah is a jerk who makes rules that can’t be easily understood as to why or what Benefit they have. And live in fear that you will be cursed forever because it’s in the Quran and the Quran must always be right. If you are shopping around for scholars that have to do serious mental gymnastics to turn something that is obviously Harum even to me as a non believer into something Halal then you are on shaky ground bud. Good luck! 👍
I have to disagree with you brother. Paying cash for a house makes the most sense. All you have to do is use a mortgage calculator and you will see that Allah's plan is absolutely perfect. Many Americans have 30 year mortgages and pay hundreds of thousands in interest. Allah teaches Muslims to trust his invention called the calculator.
@@imjustanalien7171 I can assure you 99% of people will never be able to afford a home with cash.
@@wafa-ug3btthen rent
He lost me in the beginning when he said oh you have to go in without any preprogrammed mindset. Lol we ARE preprogrammed, there are certain things that are FIXED. You don't change that. Flipping reformists.
May Allah guide this sheik
Milkshake
GREAT MAN LOTS OF MUSLIMS TAKE LOANS AND HAVE TO FEEL GUILTY ALL THEIR LIFE.AND UR HOUSE GOES UP IN VALUE ....THE BANK IS NOT GETTING U POORER
It's my suggestion to the TH-camr. As I am following Imam Shafi'e principles... I would like to hear the same topic from Imam Shafi'e perspective..
Are banks/financial institutions commercial/business/for-profit entities, or are they non-profit/charity organizations? How do banks make money for their operating expenses? How does a middle-class family go about buying a house without a mortgage, a car without a car loan, or get an interest-free credit card? Is the western banking system considered insensitive to Muslims and/or religion based discriminant?
I AGREE yes Riba is haram however are mortgages riba?? A good explanation.
Riba is money that increases after having paid the original amount due back. The definition of a mortgage is *legal agreement by which a bank, building society, etc. lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.* This means that mortgages follow the same rule as interest where an amount is constantly added on. This is Riba.
Praise be to Allah.
Riba means an increase in a particular item. The word is derived from a root meaning increase or growth. Allah, may He be exalted, says (interpretation of the meaning):
*“Whatever you pay as interest so that it may increase (li yarbu) the wealth of people does not increase (fa la yarbu) in the sight of Allah”*
[ar-Room 30:39]i.e it does not increase or rise in status before Allah.
Riba originated among the people of the Jaahiliyyah; if a debt became due, they would say to him (the borrower): Give us one hundred (that is due, now), or increase it to one hundred and fifty (and pay later). Then when the one hundred and fifty became due, they would say: Give us one hundred and fifty (now), or increase it to two hundred (and pay later) -- and so on.
Islam also forbade another kind of riba, namely riba al-fadl, which means adding to the amount when exchanging one item for another of the same type. So if gold is sold for gold, that is not permissible except like for like, hand to hand. Islam stipulated that the exchange should be done hand to hand and that the items or goods should be of the same quality. Whoever gives more or asks for more has engaged in riba. If he sells a saa‘ of wheat for two saa‘s (of the same commodity), even if it is hand to hand, he has engaged in riba.
The principle of the circulation of capital exists in both the Muslim world and the non-Muslim world. What it means is circulating capital so that it will increase. The same applies to lending; they give money as a loan provided that it will increase when they get it back. Such transactions are undoubtedly riba.
There is nothing wrong with the principle of the circulation of capital if the capital is invested in trade or business, and the profit is shared between the owner of the capital and the worker. This is called mudaarabah (profit sharing), and there is nothing wrong with it if the capital is kept distinct from the profit. If this money is deposited in a riba-based bank, then taking the interest is haraam and it is not permissible to consume it. It is not permissible to deal with these banks, and loans based on interest are not permissible. It is also not permissible to accept payment in that currency for any job if that job helps to support a system that is based on riba.
With regard to using this currency (such as the dollar), there is nothing wrong with doing so in the case of necessity, even if that leads to helping to advance the economy of that country. That is because the dollar is accepted in most Muslim and other countries, so it is permissible to deal with it because of necessity. But if there is an Islamic currency that is used, then we can do away with the dollar.
Praise be to Allaah.
Riba is forbidden according to the Qur’aan and Sunnah, and definitive scholarly consensus. Whoever regards it as permissible is a kaafir, because the basic principle is that whoever rejects something on which there is obvious scholarly consensus is guilty of kufr.
Shaykh al-Islam Ibn Taymiyah (may Allaah have mercy on him) said:
The belief that the well-known obligations are obligatory and that the well-known prohibitions are forbidden is one of the most important basic principles of faith, and the one who rejects that is a kaafir according to scholarly consensus.
Majmoo’ al-Fataawa, 12/497.
Ibn Qudaamah (may Allaah have mercy on him) said:
Whoever believes that something is permissible when there is consensus that it is forbidden and the ruling thereon is well known among the Muslims and the texts leave no room for doubt concerning it - such as pig meat, adultery and the like, concerning which there is no difference of scholarly opinion - is guilty of kufr.
Al-Mughni, 12/276
Al-Nawawi (may Allaah have mercy on him) said:
But nowadays Islam has spread and the knowledge that zakaah is obligatory is well known to the elite and commoners alike; the scholar and the ignorant are both aware of it. So no one has any excuse for misinterpreting (the texts) and denying it. The same applies to everyone who denies any matter of religion on which the ummah is agreed, if knowledge of it is widespread, such as the five daily prayers, fasting the month of Ramadaan, doing ghusl to cleanse oneself of janaabah (impurity following sexual activity), the prohibition on adultery, alcohol and marrying mahrams, and other rulings, unless he is new in Islam and does not know its rulings, in which case if he denies something out of ignorance he is not guilty of kufr… But with regard to matters on which there is consensus but which may only be known by those with specialized knowledge, such as the prohibition on being married to a woman and her paternal aunt or maternal aunt at the same time, or that the one who kills with intent cannot inherit (from his victim), or that the grandmother is entitled to one-sixth (of the estate), and other such rulings, then whoever denies them is not guilty of kufr, rather he is to be excused because knowledge of these things is not widespread among the common folk.
Shaykh Ibn ‘Uthaymeen (may Allaah have mercy on him) said: The ruling on riba is that it is haraam according to the Qur’aan and Sunnah and scholarly consensus. It is classified as one of the major sins, because Allaah says (interpretation of the meaning):
*“but whoever returns (to Ribaa), such are the dwellers of the Fire - they will abide therein”*
[al-Baqarah 2:275]
*“And if you do not do it, then take a notice of war from Allaah and His Messenger”*
[al-Baqarah 2:279]
and because the Messenger of Allaah (peace and blessings of Allaah be upon him) cursed the one who consumes riba, the one who pays it, the two who witness it and the one who writes it down. So it is a major sin.
There is scholarly consensus that it is forbidden, hence whoever denies that it is forbidden although he lives in a Muslim environment is an apostate, because this is one of the obviously forbidden things on which there is consensus.
But if we say this, does that means that the scholars are agreed on all forms of riba? The answer is no; there is a difference of opinion concerning some forms of it. This is like what we have said about zakaah being obligatory according to consensus, but despite that there is no consensus on every form of it. They differed concerning the zakaah on camels and oxen that are used for farming or irrigation, and they differed concerning the zakaah on jewellery and the like, but in general the scholars are agreed that riba is haraam and is a major sin.
Al-Sharh al-Mumti’ ‘ala Zaad al-Mustanqi’, 8/387
Based on that, it may be said:
Whoever denies that riba is forbidden is a kaafir, because the fact that it is forbidden is one of the matters indicated by the texts, and the scholars are obviously agreed that it is haraam, and this is well known among the Muslims.
But if he denies that a specific form of riba is forbidden, concerning which there is a difference of opinion among the scholars or there is no consensus that it is obviously forbidden, then he is not a kaafir; rather his case should be examined further. He may be a mujtahid who will be rewarded for his ijtihad, or he may be excused, or he may be an evildoer if by regarding this as permissible he is following his own whims and desires.
And Allaah knows best. May Allaah send blessings and peace upon our Prophet Muhammad.
And Allah knows best.
Since the time for complete payment and the amount is decided, then it is not usury. For one, the bank owns the house until you pay off the amount. Second, the money given to the buyer is not "loan", although it is termed that way. That is because you are not allowed to do anything with the money, except buy that particular house that was agreed upon with the bank. But when we "buy" the house, we don't own it, but the bank does. In effect, you have bought the house for the bank, and you'll purchase that house from the bank, whereby the bank keeps the profit, which is termed as interest, but is not usury. The bank is allowed to make money off of it because the bank owns the house, and you'll buy it from that bank. One possible objection would be that why is the bank selling their house for different prices based on the repayment time, and that whether this would be valid. According to Hanafis, it is valid as long as you chose one of the options as a repayment time along with a specific cost of the house. For scanned proof of this, refer to this scholar's own article:
shaykhatabekshukurov.com/2016/07/22/scholars-declared-mortgages-to-be-interest-and-forbidden-making-it-impossible-for-muslims-to-own-their-own-home-but-they-couldnt-prove-it/
Sorry, bank does not own the house until you pay all due ---- lie. Title of the house is in your name and legally you own the house. That's why in the advertise bank says " Your house will be re-processed if you do not keep up with payment". They can take your house based of credit default and court decision to recover the outstanding amount.
a dimly lit room full of niggas - your analysis is wrong. Riba merely means economic exploitation and this is certainly not a function of mortgage transactions. Your knowledge is out of date.
Mortgages (other than sub-prime ones and similar) are non-exploitative and thus not usurious. Riba = economic exploitation, akin to loan sharking and similar sharp practices. Simple bank interest is highly regulated and thus not a form of Riba.
Riba will only make the rich wealthier because it's making money from money with absolutely no risk to the person giving the loan. The poor person that suffers is the one who's paying back more money then he bargained for. It's that simple it's a bad system that feeds of the less unfortunate. This is why it's Haram. Investment in the other hand is allowed why? Because the risk is to both parties and not just feeding the wealthy. How Allah has rightly so forbidden such a dishonest system. We as Muslims should stay away from this and try our best to be as close to our wonderful ❤️ religion as we can. May Allah make it easy for all of us ameen