Is purchasing a home from a bank that owns the home and sells it through a fictitious interest-bearing loan considered usury, or does the bank have the right to choose the method of sale?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
This transaction contains two prohibitions: The first is lending to the bank with interest, and the second is the bank's condition that one must purchase from their housing projects to obtain the loan. Thus, it has become a loan with interest that generates a stipulated benefit, and this is religiously forbidden because it is explicit usury (riba). Therefore, engaging in this transaction is not permissible.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/73070
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 73070
- 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