Is selling one's current home to pay off an interest-based loan and buy another home with the proceeds from the sale, with the possibility of having a surplus of money, Islamically permissible, and is it permissible to perform Hajj with the surplus money?
You must repent to Allah Almighty by feeling remorse and resolving not to return to the usurious loan, and by immediately paying off the remaining amount of the loan, knowing that usurious institutions often waive interest upon early settlement. Loans are permissible in Islam, but the prohibition lies in the stipulated increase on them. The borrower is not a devourer of usury; therefore, buying the house is valid and the house is yours, and you can sell it and benefit from its lawful price. And he who repents of a sin is like one who has no sin.
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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