What is the ruling on purchasing an apartment by installments using the Murabaha to the Orderer formula, in accordance with the established controls and conditions, and how can this aforementioned financing be obtained?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Purchasing an apartment in installments from a bank is permissible if the bank buys and owns the property before selling it to you through a murabaha (cost-plus-profit) transaction, even if it sells it for more than its original price. However, it is not permissible if the bank pays the price of the apartment to you and then adds its interest, because that would be an interest-based (usurious) loan. It is permissible to mortgage the sold item to guarantee the installments. It is also permissible to insure the mortgage if it is a cooperative, takaful (mutual guarantee) insurance, and not commercial.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/110385
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 110385
- 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