Is it permissible to purchase a house through an interest-based bank loan to avoid social pressures on children and to ensure their education in Islamic schools, knowing that the saved amount is insufficient to buy a house outright, and one-third of the house's value will be paid as a down payment with the remainder to be paid in installments over ten years with the intention of early repayment?

Purchasing a house through banks with an interest-bearing loan is forbidden, unless renting becomes impossible or entails extreme hardship that can only be alleviated by such a purchase. In that case, it is permissible, in accordance with the principle: "Necessities make the prohibited permissible." Among the religious proofs for this are the Almighty's sayings: (And He has explained to you in detail what is forbidden to you, except what you are compelled to [eat or use]) and (But whoever is compelled [thereto], neither desiring [it] nor transgressing [its limit] – then indeed, your Lord is Forgiving and Merciful). The European Council for Fatwa and Research has issued a fatwa permitting this for Muslims residing in Europe, provided that the dwelling is essential and there is no surplus money to purchase it in another way.