What is the reality of Islamic mortgage financing, and is it endorsed by scholars? Is the method followed by Islamic banks illegitimate? What is the difference between an interest-based loan and an Islamic mortgage? How can one convince someone who believes that Islamic mortgage financing is not permissible in Sharia?

There are fundamental differences between interest-based and Islamic mortgage. The former is prohibited due to its inclusion of compounding interest, which is absent in the Islamic model. Islamic mortgage relies on two transactions: "Ijarah Muntahia Bil Tamleek" (lease-to-own) and "Murabaha" (cost-plus financing), both of which are subjects of scholarly debate. "Ijarah Muntahia Bil Tamleek" has permissible and impermissible forms, while "Murabaha" is only permissible under two conditions: that the bank owns the commodity before selling it, and that it takes possession of it. A Muslim is not obligated to buy a house, and patience until Allah enriches them or facilitates a permissible method is the best and most cautious approach for one's faith.