Is it permissible to initiate a contract with an interest-based bank and then transfer it to an Islamic bank due to the unavailability of a 20% down payment for purchasing a home?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
What the questioner described as "starting a contract with a usurious bank" means borrowing from the bank with interest. This is forbidden usury (riba) and is not permissible except in cases of dire necessity. The purchase of a house does not constitute a necessity that permits usury, as long as a person can rent a house without unbearable hardship, which is usually the case.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/94924
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 94924
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy