Is a contract that includes paying a reservation down payment and quarterly installments, followed by paying for the unit's financing with monthly installments at a fixed 7% interest, along with cash support from the fund, considered a usurious contract or a permissible one?
It is not permissible to purchase apartments through real estate financing in the form of a loan where the bank pays the price of the apartment and then recovers it from the buyer with a seven percent increase, as this is clear usury (riba).
Summarized from the full answer at Ftawy · reviewed Sep 2, 2026
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