Is it permissible to take out a loan to buy a home, or is it more preferable to rent, knowing that the value of the rent can be paid as a debt repayment?
Source: FtawySummary from Ftawy's records · added here Sep 2, 2026
Purchasing a house through an interest-based (riba) loan is forbidden by Islamic law and is considered usury, which the Quran has warned against. The Prophet, peace and blessings be upon him, cursed the one who consumes usury, the one who feeds it, its scribe, and its two witnesses. It is not permissible to engage in it except out of dire necessity. The need to own a home is not considered a dire necessity if renting is possible. However, a good loan () that is free of interest, or purchasing through a Murabaha sale conducted by Islamic banks, are 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/58934
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- Ftawy
- Original fatwa ID
- 58934
- 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.
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