What is the ruling on owning a house from a bank through an Ijara contract, where the bank buys the house then leases it to me with a promise of ownership after the end of the lease term, noting that the bank takes a down payment, covers basic maintenance, and increases the installment if payment is delayed without cause, with the increment being disbursed to charitable organizations?
All clauses of the Ijarah Muntahiya Bittamleek (Lease Ending with Ownership) transaction are permissible, with the exception of the bank taking an increase on the installment in case of delay without a valid reason, even if this increase were to be disbursed to charitable organizations. Therefore, this transaction is not permissible if this condition is present.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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