What is the ruling on mortgaging homes with the addition of a nominal rental value (legal stratagem) due to the high cost of rent and the difficulty of securing housing with minimum wages?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
"Pledging the house while the pledgor benefits from it in exchange for a loan to the pledgee is impermissible (), because it is a loan that draws benefit, and every loan that draws benefit is usury (riba). The symbolic amount mentioned does not remove the matter from the realm of usury, because the benefit is still gained by the pledgor through the reduction in the remaining rent in exchange for lending a sum to the homeowner."
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/45064
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 45064
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy