What is the ruling on taking a housing loan from an Islamic bank if the apartment owner pays the down payment (20%) on behalf of the borrower, and the bank repays it to him upon completion of the loan, with the bank appraising the apartment at a price higher than its original value?
Source: FtawySummarized from the full answer at Ftawy · imported Sep 2, 2026
It is permissible to deal with the bank using "" to purchase housing, if the bank buys the housing and it enters into its possession and responsibility, then sells it to the customer at a profit, provided that the regulations for Murabahah are adhered to.
However, it is not permissible to agree with the seller to state an unreal price for the housing to secure the down payment, because the increase in price will be an interest-bearing loan, and the sin falls upon whoever acts fraudulently and deceives the bank.
Summarized from the full answer at Ftawy · imported
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- 126748
- Imported
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