How Islamic Mortgages Work and WHY are they Halal? | IFG #shorts

Haram 😂😂😂

Partners 😂 hmmm the bank can take the house if you dont pay? But you cant take the house from the bank if they dont pay as the literally own it 😂

Youre trying to explain and sugar coat your haram ways

It is all same. Doesn’t make sense how it is halal. If bank charge 50k markup extra on 100k what is the difference with interest? The goal was to prohibit interest so people will not pay higher money than the loan, islamic bank called it rent and still charge even higher than normal bank? Its all same. All haram

Who is responsible of the maintenance of the house? The bank or the individual? The bank won't pay a penny...so it's not halal. No such thing, until the banks cobtribute based in their proportional ownership for repairs and maintenance of the house.

How dare you attach the word Islam to that fabricated usury scam

I'm officially Muslim...fk you guys

This is why muslims have no inventions this century or last.

The bank you borrow from borrows using an interest based transaction.

There is no Murabah contracts in the UK. If the Bank of England base rate goes up does that mean Murabaha rate increases in line with base rate?

Murabaha is interest basically, making money from money, the price is fixed and yet they take more. Allah u alam, but i think in islam we just have to lend money to brothers and sisters to help the community to become stronger

The second solution is “acceptable” in principle

The first solution is RIBA in disguise

When you hear coin coin it is a duck even with an Islamic clothes

Islamic and mortgage is antinomic

Both are just diff names of standard bank loans, just given muslim names. It's like just calling David as Daoud alone won't make one Muslim!

I see 0 difference . Islamic bank sells on a premium while the traditional bank sells on longevity. The traditional bank doesn’t require anyone to pay off within 30 years . That is , you can get a mortgage today and pay it off tomorrow while with Islamic, you have to respect the contract. Honestly, don’t see any difference

Musharaka is literally just an interest based loan with a fancy nomenclature ontop of it. The bank is profiting off of interest or “profit” in this case. Diminishing Musharakah on the other hand is an actually Islamically viable option because the price of the house doesn’t change, and the bank makes money through rental income.

All Islamic banks work on fractional reserves. Nothing is Islamic . It’s a lie and financial scam

You made that up. It’s the same same thing as getting a loan from the bank. Actually this type of mortgage is bad, because you are forced to pay interest first and not contributing to your principle until year 10. Which means if you decide to sale your house in a few years your principle will remain the same. Stop this shenanigan in the name of Allah. Shame on you!!

If the buyer is not present, would the bank be interested in the “least” of buying that property?

I wonder if he is being paid by islamic financial banks to halalify this scam. Fear Allah and dont just take his advice and fall into a major sin. If you have doubts even after doing a thorough research first, its better to leave it!

For people who are looking for explanation or justification in comments section. Read below. Allah Subhan-tha-ala said the concept of interest is prohibited because it makes rich more richer and the poor more poorer basically creates economic imbalance in society. Now the above two methods mentioned by the speaker perse are not haram by the book or word or sharia. But the fundamental method of Loan in both the approaches makes the rich more richer and the poor more poorer because for example in the first approach the Islamic bank buys the house and sells it at a very higher rate over-night. In the second approach Islamic bank shares the house but increases the rent of the house overnight so that you pay more rent than your share of rent. Irony is that the rate at which they increase the price in both approaches is done by them by referring the standard interest rates in the market or even more than that often. So Islamic banks are creating more economic imbalance than the standard banks. Now it’s up to you whether you go by word or spirit of the word and I worry for those who go by word and not by spirit because may be Allah will also return to them by word and not by spirit. By the way the a person who takes islamic bank pays more money than the one who takes non-islamic loan. so islamic banks are creating much worser economic imbalance in the society than the normal banks. Remember the Devil is in the details.

If one can pay rent and avoid mortgage this is better and Allah will provide for those who choose the path of Taqwa. Stay in the safe zone and can never go astray. Allah is the best of providers

Basically the 2nd one is shared ownership…I’m not entirely sure how folks convinced themselves that this is halaal lol

Barakallahu Feekum akhi :)

If an Islamic bank buys a house for me for $100,000 and sells my house to me for $150,000 then what do the conventional banks do?

“You cannot sell the things what you don’t own” … prophet muhammed pbuh

First is business second is not halal
Where this brother studied!? 🚽 Newspaper?

Such evil practices. A HOUSE COST 100 000 BUT YOU LET THE BANK BUY THE HOUSE YOU HAVE YOUR EYES ON AND THE BANK WILL NOW SELL THE HOUSE TO YOU FOR 110 000 OVER A PAYMENT PLAN, ALTHOUGH IT DOES NOT APPEAR THAT THERE IS INTEREST OVER THIS LOAN, BECAUSE YOU ONLY PAY THE 110 000 IN EQUAL TERMS WITHOUT EXTRA COSTS, IT ALL SEEMS HALAL. BUT ASK YOURSELF? WHY DOES THE HOUSE, THAT IF YOU HAD THE CASH MONEY READY, WOULD ONLY COST YOU 100 000, NOW SEEMS TO COST 110 000?? WHO WOULD DELIBERATELY PAY 10 000 EXTRA? NO ONE. SO, THEN WHY DO PEOPLE BUY THE HOUSE FROM THE BANK FOR MORE THAN THE ASKING PRICE FOR THE HOUSE? BECAUSE THEY DONT HAVE THE CASH TO BUY IT OUTRIGHT. DO YOU SEE THE DECEPTION HAPPENING? TO SUMMARIZE:
TRANSACTIONS ARE ONLY HALAL IF THERE IS NO DIFFERENCE BETWEEN PAYING IT 100% NOW OR IN PAYMENT PLANS. BOTH OF THESE OPTIONS HAVE TO AMOUNT TO THE EXACT SAME AMOUNT 100 000 TO BE HALAL. BUT WHAT WE SEE IN OUR REALITY IS: WERE YOU TO BUY 100% RIGHT NOW, YOU WOULD COME OUT LOWER THAN THE TOTAL PRICE YOU WOULD HAVE TO PAY IF YOU WENT FOR INSTALLMENTS!! THIS IS HARAM. BUY NOW 100 000 BUT BUY IN 10 YEARS AND YOU WILL SEE THAT YOUR TOTAL PAYMENTS AMOUNT TO MORE THAN 100 000. BE AFRAID OF RIBAA!

Bro customer and bank are never partners, pls read documents properly

Selling a house of market value 100k at 150k itself is a scam. How can lets say a car which company priced at 100k be sold at profit of 150k. What value is added? Did you modify the car or house? Is so I agree. Otherwise its scam.

I’m sure when u pay rent to get the rest 80 percent this rent also includes a fee lol, so it’s the same as a regular banking just they added the term Islamic 😂

doesnt sound too good tbh. this "markup" just sounds like a fancy version of interest.

Could you not also use your logic with literally any trade ever? if i have an asset that i acquired, and then sold it to you for more than what i acquired it for, in order to make a profit, is that not also just a markup of the cost that i paid to acquire it?

Best example I have had heard in a long time

There’s no such things as Islamic banks or mortgages,, it’s just organisations who have just put different labels on interest and riba based schemes and instead use terms like “rent” or base it on shared ownership scheme. There is no difference between these so called “Islamic mortgages” and western mortgages, they are literally the same albeit they just call interest and riba based schemes”rent” or “shared ownership”. More needs to be done in the Islamic world to help people finance their homes in a truly halal way that reflects Quran and Sunnah. These so called Islamic mortgages still have an excess and charge the same if not higher rates than western mortgages.

So basically I will be paying double the amount of the property value but it’s not called interest but something else 😂😂😂

So i dont bet on red in roulette i invest my money on red in roulette

The 2nd one is a very Jewish sounding loan. If a bank (Jew) owns half that means that house is only half halal and that house won’t have any wafra (blessing)

I'm sorry but if I you buy a house for $100k and turn around and immediately sell it to me for $150k you're basically charging me the interest you would have gotten. Seems like skirting the rules of charging interest. A house does not appreciate $50k instantly.

Jazak Allah Khair ya AKhi <3

Rent! Rent! Rent! Dont need a Mortgage! Ive been Renting 7 Years. Been able to move Around and managed to save money. With the intention to not pay Riba or any other type of rebranded Riba. If your intention is sincere God will open doors and bestow you!

Haram

So called Muslims desperate to buy a house at any cost, you are paying interest with a different name, you can fool people but ask your heart....Allah is watching.....

Why would any bank take the pain for you unless they get extra money which is interest but you call it rent or profit bla bla bla😂

If i earned interest on a halal principle amount invested in a bank fixed term savings account. Once i take the riba out of that. Can i still consider my initial principle amount to be halal?

The Prophet (ﷺ) said:

"Halal is clear, and Haram is clear, and between them are doubtful matters that many people do not know. Whoever avoids the doubtful has preserved his religion and honor."
(Sahih al-Bukhari 52, Sahih Muslim 1599)



Thus, if you are in doubt about the structure of these mortgages, it’s better to avoid and look for a pure halal alternative, even if it is harder.

Imam Ahmad said:

"Leave a thousand doubtful things out of fear of falling into one haram."

Ask banks were did they got that all cash from... Blackrock who funding it. Not 100% halal. Background hidden

Sorry but this is literally how traditional mortgages work too. The Islamic loans just charge you more for the Islamic level

They all end up using interest. There’s no such thing as halal mortgage, they work with bank that uses interest. It is bida. Pray dua to Allah to grant you the wealth to buy a home. There isn’t anything wrong with renting. Is better and Allah will be satisfied with us for not getting interest, haram.