The Islamic ruling on mortgages is a pressing concern for many Muslim families residing in regions where Islamic banking is unavailable. Often, these families face deteriorating living environments and significant rent increases that consume their income, leaving nothing for savings or unforeseen circumstances. Without the ability to purchase property, ensuring long-term stability and raising children in a suitable neighbourhood becomes exceedingly difficult.
The Prohibition of Riba and the Principle of Hardship
It is universally recognised that taking a conventional bank loan with interest to purchase a residence constitutes riba, which is strictly prohibited in Islam. However, Islamic jurisprudence incorporates a degree of tolerance to alleviate severe difficulties. The fundamental principle in Shari’ah for understanding this relaxation is that whenever a hardship afflicts a large number of people, it is treated as a necessity. Consequently, the strict prohibition is relaxed to the specific degree required to remove that hardship.
This legal mechanism is rooted in the Quranic approach to necessity and the removal of undue burden.
Almighty Allah states: “But whoever is forced [by necessity], neither desiring [it] nor transgressing [its limit], there is no sin upon him. Indeed, Allah is Forgiving and Merciful” (Surah Al-Baqarah, 2:173). Furthermore, the Quran affirms that the Creator “has not placed upon you in the religion any difficulty” (Surah Al-Hajj, 22:78).
Permissibility Based on Necessity
Based on this established Shari’ah rule regarding necessity, respected scholars and jurisprudential conferences have issued rulings addressing the specific plight of Muslims living in areas without Islamic financial institutions. For a family striving to secure their financial future and move away from degrading surroundings to a safe environment for raising children, purchasing a home through a conventional mortgage is considered permissible under this specific allowance. The circumstances of financial insecurity and the need for a stable family environment constitute the typical conditions required to apply this ruling.
Rejecting Undue Suffering
Prominent scholars argue strongly for the application of this ruling in cases of genuine family hardship. They caution against rejecting this allowance out of a rigid or superficial piety—sometimes referred to as “cold taqwa.” There are no grounds in Shari’ah to claim that a Muslim family must endure ongoing distress, financial insecurity, or unsafe living conditions when a legitimate jurisprudential exemption exists to relieve their suffering.
