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Is it permissible to purchase a house in installments from an institution that claims to operate according to Islamic Sharia, with an added profit, while its capital originates from an interest-based institution?

1 min readAlso available in العربية

It is permissible for the entity to sell the house after acquiring ownership of it and it coming under its guarantee, then selling it in installments with a profit, because "time has a share in the price." It does not affect the transaction that the institution is a branch of an interest-based bank, as long as it adheres to the provisions of Islamic law.

Summarized from the full answer at Ftawy · reviewed Sep 2, 2026

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