Is it permissible to take out a bank loan to purchase an investment property in Canada?
If the bank is Islamic and the transaction is legitimate, such as a murabaha (cost-plus financing) agreement, then there is no harm in it, although it is better to avoid debt unless there is a need. However, if the transaction involves usury (riba), it is not permissible except in cases of dire necessity, which is when a person reaches a point where, if they do not consume what is forbidden, they will perish or be close to perishing. Increasing income and developing trade are not among the necessities that permit usury. Sheikh Mawdudi mentioned that purchasing luxuries or acquiring funds to promote trade are not necessities that permit borrowing with usury.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
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Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 133859
- 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