Title: The question is that I am a government employee and I want to purchase a house for my family but I cannot buy in lump sum and can only buy in installments

Question: I have gone through all the previous questions but could not find this. The question is that I am a government employee and I want to purchase a house for my family but I cannot buy in lump sum and can only buy in installments. In Karachi there are many housing projects which offer to buy a house in installment but the thing is that every project is partly financed by builder and partly by House Building Finance Corporation (HBFC), that is I will have to pay part of the cost to builder (after paying builder's part I can have the possession of the house) and the rest to HBFC and HBFC applies interest on that part of the loan. So is it lawful for me to have a house in this way considering that I am not taking loan from HBFC directly?

Answer ID: 40201Posted on: Sep 1, 2020

Bismillah hir-Rahman nir-Rahim !

(Fatwa: 1584/1250/B=1433) It is not lawful to buy home on loan and pay the amount on instalments with interest. Its lawful method is that whatever the price of house is fixed and the total amount up to the last instalment along with interest is calculated as the total price of the house and then the buyer buys the house on this price and keeps on paying the amount in instalments. Thus he shall be saved from interest and the purchase of the house shall be complying the rules of Shariah.