# Are Islamic mortgages really different from normal mortgages?

*Islamic finance and Islamic mortgages: a moral alternative or a loophole?*

- URL: https://muftiabulayth.org/r/wce73zqci_i/s/33/
- Date: 2020-07-10 · Kind: discussion · Transcript tier: machine · Recording: Shaykh Omar Baloch | Cynicism, Consumerism & the Catch 22 of Riba | Mindtrap with Mufti #30 (2:06:11–2:12:33)
- Status: general teaching
- Watch from the start of the segment: https://www.youtube.com/watch?v=wCe73zqCi_I&t=7571s
- Recording page: https://muftiabulayth.org/r/wce73zqci_i/

**Topics:** Riba, mortgages and loans; Money and finance

**Summary (not a quotation; machine-made, unchecked):** Mufti Abu Layth calls Islamic mortgages a loophole that does the same thing as a conventional one at a higher price with an Islamic veneer.

## Longer summary

Mufti Abu Layth says he personally feels Islamic finance differs from regular finance only by a veneer. The guest says there is moral and immoral financing, that all the Abrahamic religions have opposed loan-based profit, and that it helps to see how Jews and Christians define interest. Mufti says the Islamic examples are usually loopholes, which Islam itself frowns upon, and usually more expensive; the guest compares it to fitting a Mercedes part to a lesser car, but says he would accept paying more if he kept his share after bad luck. Mufti argues that foreclosure law varies by country and that mortgage payments are in lieu of rent; the guest says owners invest in a home as they never would in an apartment and that millions lost homes after paying for twenty years. Mufti says he is not justifying the banks, that buying is generally cheaper than renting and gives a return and a home for one's children, and that Islamic mortgages are just a loophole doing exactly the same thing while charging more.

## Sources and names cited

- Shaykh Omar Baloch
- riba

## Transcript (machine tier, 2:06:11–2:12:33)

[2:05:31] I personally should agree with you that I feel that the Quran the imagery in the Quran I don't actually go with the fact it's a literal I mean I feel it's symbolic because of things like this it's full it's just a motivating factor for certain people and that's my point that it's motivation and that's for people Martine Miller says if we could translate some of the verses for non Arabic people but that's a hadith about that look what the afterlife actually is not no eye has ever seen no ears heard neither has any mind ever conceptualized

[2:06:10] not even the concept so yeah I totally agree with you on that I was just saying oh it is interesting that you see when it comes to Islamic things and I'm calling them is but I personally feel that like what is the difference between Islamic finance and just regular finance except in essence it's just wood you know yeah because you've just give it like I feel they just give her a veneer finance but there is a laurel finance moral moral financing and then there's immoral financing and and and I would say that

[2:06:48] all religions all the Abrahamic religions Christianity Judaism Islam they've all been against loan based profit type of because you know when we under when we're trying to understand this is a longer debate and I show show no no I understand that we go into the understanding of what is interest is it Reba is it not River it's also helpful to see what Christians are defining as interest it's also helpful to see what Jews are defining as their you know interest from their perspective because this is laws that have been revealed to them prior to us and but I mean even the Islamic example the Islamic one is

[2:07:27] usually just a it's just loopholes isn't it which is ironically kind of frowned upon in Islam it's like it's just like kind of loop holding the whole thing and saying well actually and by the way charging more usually Islamic finance is always more expensive than your regular kind of two problems with that right one problem is it's like putting in a Mercedes part in a shorter car you're trying to make something Islamic that can't become a stomach that's just the

[2:08:05] bottom truth right well you I would argue that Islamic I would obviously be fine with it which is that even though you're paying more but if somewhere along the line you have a bad luck you're gonna get your share but that as I've said I don't think that is you know is that concept of foreclosure the way you're saying I think that varies based on country to country in the West it's not as straightforward as you're just saying you know they're gonna say well they just come in and wipe everything and I think based in certain countries the laws vary on that so okay let's say a bank which is a for-profit organization

[2:08:44] give you a house that they own and you're paying them back and you now can't feel fulfilled that contract it's in there it's in there but yeah have you not have you not lived there was that paid were those payments not in lieu of rent like let's say you didn't live in that banks house I was but let's say I'm paying five hundred pounds a month to let's say a mortgage company now if I spent five years five years here if I didn't live here I would have been

[2:09:21] renting for five years and in fact I would have been renting most likely at a slightly higher cost is this I mean is that not in love for that anyway because you don't put that type of investment in an apartment you don't like put personal like you don't wouldn't build a swimming pool in an apartment you wouldn't chain make any changes to the interior of the house you wouldn't do a you wouldn't the female the wife wouldn't have that type of investment in an apartment that she would in her house that she later on loses right sure some people do to be fair some people rent apartments on let's say they rent homes and they will bring in fit they will furnish the whole place and they do as well there are I've

[2:10:00] actually seen people that have actually done that they've lived in a rented house for like several years they've done up the whole flooring done everything REE you know they have done I mean I'm just saying that's people and it's up to people what they want to do it is other differences for example in an apartment something goes wrong I have somebody to call I can get it fixed right somebody takes my ax somebody has responsibility for maintaining that apartment when I have a mortgage on my house and something goes wrong the faucets not working or anything I have to invest but who's who's using tiles who's using that faucet in that tap who's using it you are so essentially correct I think you

[2:10:39] would be essentially correct that it's kind of like a rent that you just lost your house it's like you just lost your apartment some degree but was that but then then it but then here's here's where the problem is the problem with problem huh now go for it I said go for it she who is the problem the problem the problem is is that that is not what the client was expecting to happen that was not the expectation the expectation was not that I would pay twenty years out of 30 and then still lose my house which has

[2:11:18] happened with millions of people in America and if you look at this day and you know I'm and that thing look I know I'm probably gonna be coming off here have some people thinking you know I'm probably gonna get some promotion as a full closure kind of run my own department here I'm not justifying what the bank's do in terms of you know taking people's homes and stuff like that I obviously am NOT you know I'm speaking from the part of the public but I do recognize that let's be honest in the West where we live people generally take they reach a fork in the road where

[2:11:54] you either rent or you buy now if you buy it will be generally much cheaper and it will give you soulfully some return on investment it will also be a home if you do manage to see it through for your children it will give you capital in the country if you just rent fine I mean you can as well it's not I don't feel and in some European countries they tend to rent more but I just and the Islamic mortgages I feel are just a loophole it's doing exactly the same thing and what they're doing is just charging you more and giving it an Islamic veneer so that the problem with

## Cite

Mufti Abu Layth Archive, segment wCe73zqCi_I/s/33. https://muftiabulayth.org/r/wce73zqci_i/s/33/

Not a fatwa: these answers were given to specific people at specific times. Ask a qualified scholar about your own situation.