Question: Is it allowed for me to take out a loan (Mortgage) from a bank that deals with interest to buy a house? Benefit us may Allaah reward you with good.
Answer: Even if you were in dire need of eating a piece of bread to save yourself from death still don’t borrow anything from the bank whatsoever, let alone buying a house or a car. When one is in a adverse situation forced by circumstance (severe hunger) Allaah has made lawful for you al-Maitah (dead animals), and the flesh of swine, and that which has been killed by a violent blow or by a headlong fall; yet ar-Ribaa (interest) has not been allowed for you, interest is very dangerous, very dangerous. So don’t deal with interest and be patient; since Allaah the Perfect and the Most High mentions:
And whosoever fears Allaah and keeps his duty to Him, He will make a way for him to get out (from every difficulty). And He will provide him from (sources) he never could imagine. And whosoever puts his trust in Allaah, then He will suffice him. (Surah At-Talaq 65:2-3)
So dealing with interest is a grave sin, a dangerous matter and the one who makes it allowable has disbelieved. Therefore if you are in need of a house then be patient until Allaah provides it for you, seek refuge in Allaah and utilise the necessary means until Allaah paves the way for you to obtain a house.
Either that or you die being free from waging war against Allaah. Since the Muraabi (the one who deals with interest) is warring with Allaah – and Allaahs refuge is sought – as Allaah the Perfect and the Most High mentions:
And if you do not do it, then take a notice of war from Allaah and His Messenger but if you repent, you shall have your capital sums. Deal not unjustly (by asking more than your capital sums), and you shall not be dealt with unjustly (by receiving less than your capital sums). (Surah al-Baqarah 2:279)
He (Allaah) declares war upon the people of ar-Ribaa (interest) and “the Messenger of Allaah (sallAllaahu alayhi wa sallam) cursed the usurper of interest, the one who pays it, the one who records it and the two witnesses to it.”[Reported by Muslim in his Sahih (11/36 no.1598 – Nawawi) from the Hadith of Jaabir radiallaahu ‘anhu]
What do you want after the curse?! Will the house benefit you when you are in front of the Hellfire?! So the believer should fear Allaah and should have patience upon his destitution and his need; for indeed Allaah the Perfect and the Most High mentions:
And certainly, We shall test you with something of fear, hunger, loss of wealth, lives and fruits, but give glad tidings to the patient ones. (Surah al-Baqarah 2:155)
Be patient and Allaah will give you this mighty reward instead of exposing yourself to His curse, His anger, His wrath and His punishment. Bear this severity in the world for it is nothing in comparison to the anger of Allaah and His punishment.
We ask Allaah that He protects us by His grace and favour from everything that incurs His anger and wrath. Indeed our Lord is All-Hearing of our supplications. And may the blessings of Allaah and peace be upon our prophet Muhammad, his family and upon his companions.