Answer
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
In this fatwa:
Many contemporary scholars hold that if a Muslim purchased a modest home through a conventional mortgage because no practical halal alternative was available, renting out that property is generally permissible. This opinion is based on the principles of necessity (Hajah) and choosing the lesser of two harms while maintaining that Riba itself remains prohibited.
Responding to your question, Sheikh Ahmad Kutty, a senior lecturer and an Islamic scholar at the Islamic Institute of Toronto, Ontario, Canada, states:
Many Muslims today face a real and pressing question: can they buy a home through a conventional mortgage?
At the level of principle, the answer is clear. Interest (Riba) is prohibited, and a believer is meant to approach it with caution and seriousness. But Islamic law also recognizes that people live within constraints—especially in societies where halal financial options are limited and housing is not easily secured.
Because of this, many contemporary scholars, particularly those working with Muslim minorities, have revisited the issue in light of lived realities: rising rents, long-term instability, and the difficulty of raising a family without a permanent home.
Their reasoning often rests on two established principles.
- The first is need (Hajah). When a genuine and widespread need exists, the law allows a limited concession, even in matters that are normally restricted—provided no reasonable alternative is available.
- The second is choosing the lesser of two harms. When both available options carry difficulty, one may choose the path that leads to less overall harm.
This means weighing two realities. Renting may avoid direct involvement in interest, but it can lead to years of payments with no ownership, little stability, and ongoing financial pressure. Buying through a mortgage, while ethically problematic, can gradually lead to ownership and security.
For this reason, a number of scholars consider purchasing a modest home through a mortgage to be the lesser of two harms where no viable halal option exists.
But this is not a blanket permission. It is a constrained allowance.
It depends on intention: the goal should be necessity, not luxury. It requires moderation: choosing a reasonable home within one’s means. And it calls for effort: trying to reduce and repay the mortgage as quickly as possible.
Just as important is one’s inner attitude. This concession does not change the ruling on interest. Rather, it reflects a response to hardship. A believer remains aware, cautious, and seeks forgiveness while hoping for a time when fully halal options are available.
In the end, this is not a simple yes or no. It is an attempt to balance principle with reality without losing sight of either.
It should also be noted that this position has been adopted by major Fiqh councils in Europe and North America, which have studied the issue carefully in light of the circumstances facing Muslim minority communities.
- Riba vs. Mortgage: Key Differences in Islam
- Do I Have to Pay Zakah If I Have a Mortgage?
- Buying House on Mortgage in Islam
- Is Being Mortgage Underwriter Halal?
- Husband Breaking Needed House Mortgage: Permissible?
Almighty Allah knows best.