Is it permissible to borrow from an interest-based housing bank with interest to build or purchase a house, when he does not own a house?
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The questioner : Peace be upon you and Allah’s mercy.
The Shaykh : Peace be upon you and the mercy of Allah.
The questioner : May Allah reward you and prolong your life, O honorable Shaykh. Is it permissible for a person to borrow a specific amount from an interest-based bank, called the Housing Bank, to build or purchase a house, given that he does not own a house, neither he nor his family? Is it permissible for him to borrow this amount?
The Shaykh : Do they give him this loan with interest, or without interest?
The questioner : With interest.
The Shaykh : No, it is not permissible. However, if there are, for example, residential buildings that have been built and he purchases them from the builder for a price higher than the cost, there is nothing wrong with that.
The Shaykh : Peace be upon you and the mercy of Allah.
The questioner : May Allah reward you and prolong your life, O honorable Shaykh. Is it permissible for a person to borrow a specific amount from an interest-based bank, called the Housing Bank, to build or purchase a house, given that he does not own a house, neither he nor his family? Is it permissible for him to borrow this amount?
The Shaykh : Do they give him this loan with interest, or without interest?
The questioner : With interest.
The Shaykh : No, it is not permissible. However, if there are, for example, residential buildings that have been built and he purchases them from the builder for a price higher than the cost, there is nothing wrong with that.