Islamic Financing/Mortgages | Dr. Yasir Qadhi & Dr. Hatem Al-Haj
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- čas přidán 19. 06. 2024
- A detailed discussion between Dr. Yasir Qadhi and Dr. Hatem Al-Had on Islamic financing and mortgages.
Chapters:
00:00 Quran Recitation|Shaykh Hafiz Sajjad
00:20 Introduction
04:39 Comment|Overall field of Islamic finance
08:28 Basic point of Fiqh|Reward of giving Qard Hasana (Good Loan)
09:52 Islamic notion of Riba|Is western notion of interest same/different as Islamic notion of Riba?
18:28 Genre of Hadiths equating Riba & doing zinah with mahrams are not from Prophet(pbuh)
20:16 Is the sin of always charging interest always same as the sin of being forced to pay it?
26:27 Is conventional mortgages an example of Riba?
32:42 Part A|Conventional mortgages|Under what circumstances would it be permissible?|Part B|What is advice to lay Muslim regarding difference between fatwas of Shaykh Qardawi vs other great ulema?
39:41 Summarizing|Position on Part A & B
40:19 Comment|Position of Shaykh Dr Akram Nadwi
50:04 Islamic mortgage (shariah compliant loans) models|Murabaha(promise to buy)|Musharakah(diminishing partnership)|Ijara(rent to own)
58:28 Summarizing|Islamic mortgage models|Murabaha would be the best|Contracts have problematic clauses
1:00:04 Do these problematic clauses invalidate the permissibility of the contracts?
1:20:00 Summarizing|Permissibility of Islamic mortgages to purchase house that they live
1:24:28 Concluding thoughts & duaa
1:27:50 Quran Recitation|Shaykh Hafiz Sajjad
In complying to Allah commands I have started to build my own house out of pocket,it would take me about 5 years, give or take inshaAllah . I have tried to get a Muslim house loan but that was a very difficult process so I gave up . I am so at peace . I am in my second year and AllhumduAllah I have done the foundation and I have paid for half of my truss and I am so grateful to Allah for all he has allowed me to accomplish. Form Florida.
Hello your comment truly inspired me are you interested in explaining the process to do that? Also do you need large savings to achieve that?
May Allah reward you for this and give you barakah in your house and money Ameen. I have no doubt Allah swt will reward everyone who does it the right way and obeys His command.
Why is the Islamic financing a difficult option? Is it the cost or other factors?
Here is a comment I made on Dr. Yasir Qadhi's personal channel:
The conclusion begins at 1:20:00, and also includes an additional caveat at 1:24:04.
Summary of conclusion: A Muslim should avoid conventional financing, and instead use Islamic financing if they have a need, even though as it currently stands islamic financial solutions still have problems. If they can not find a islamic financial solution, and they have a *strong * need, then they should consult with a local scholar on whether conventional loan is appropriate for them due to their special circumstance.
In general, we should patronize islamic financial institutions over conventional ones, because we want them to grow in size, so that they can have the power to provide us with more favorable contracts from a Shariee' perspective. At the end of the day, the situation we are in now where the global financial system prevents true islamic offerings from taking place, even in muslim majority countries, is no ones fault besides ours as a ummah.
[I tried my best to provide a summary of the conclusion, but any mistake is my own, and you should refer to the actual video]
Jazak Allah Khairan
if both the "Islamic" alternative and the conventional mortgage have "non-halal" components, why should we prefer the "Islamic" alternative? How "Islamic" is it when it has haram components?
@@mezbricks the answer to your question is presented in the video
I agree with your review, I would state it more directly as follows: al-Haj says we should use Islamic financing not because it is financially better, but because it is Islamic.
Jazak Allah Khairan! So glad to be part of the EPIC community. May Allah bless you for this knowledge!
JazakAllahu khairan Sheikh Yasir for this amazing video. Thank you so much for introducing a knowledgeable and honourable sheikh to us. You are a blessing from Allah subhanoo taala for us. May Allah always keep you on sirat al mustaqeem.
Jazakallah for this video it's very frustrating these days in Canada and I love the information on this video
Jazak Allahu kharian 🕌
Very beneficial!
Brothers if we don't have money then rent. Taking mortgage is only looking for the good in this life and at the same time declare war against Allah and His Prophet SAW. Allah will reward us for our patience. We cannot turn to Allah SWT telling Him the Most Merciful that His door of rahmah is closed. Fear Allah.... Allah will find a way for us in a way we would not even imagine. We ask Allah to guide us all...
You don’t know what you’re talking about! Mortgage is not haram
MashaAllah may Allah guide us all
When you are renting you are still paying someone else interest rate
If I rent 4 bedroom it is 3k but when I am paying my mortgage for my 4 room 3 bath house I pay 1700$. Which one do you prefer?
@@maryberry5359 one is haram and other is halal
Choose what will save you in hereafter
I like the intro Ayah!
Good discussion. It gives the reasoning why islamic financing in it's current form are allowed by the scholars even when there are some issues within the contracts.
Exactly! And it does make sense to me. Maybe not to others, but it makes sense to me.
Great
Thank you Yasir Qadhi for this informative discussion. Can you kindly share some companies providing Islamic financing in Canada ?
Talking about technicality at 32:27, the respected scholar ignores the fact that in a home loan, the loan is not issued out of thin air but the bank is VERY WELL AWARE of the physical commodity (i.e. the house) which is involved in the process. They also know VERY WELL that if the person defaults on the loan they will be stuck with a physical commodity i.e. the house.
In my opinion, most of the scholars who beat all type of loans with same stick are wearing blinders and just have a one-track mind. Giving loan to Microsoft/Apple (by buying their bonds), is fundamentally different than lending money to a grocery worker who is in need of a car to commute. It will be utter foolishness to give loan to Microsoft and say, I will just get the same money from you after 5 years.
I still don’t understand how mortgage is an exchange of money for money. There is an appraisal, qualification and you are stuck with the property. I wish someone can address this issue.
Allah guide is all to his mercy, Ameen
Jazak Allah Khair for educating us on perhaps the most complicated issue in modern times
I cannot discern a clear reason for using Islamic finance, beyond that scholars have said its Islamic...
Sometimes your need only qualifies as a Haja for a conventional mortgage but if the need is not addressed at that stage it'll lead you to difficulty where it will become a daraurah. Out of anticipation, is not not prudent to consider the matter a daraurah before it becomes so and costs you money and time
Explain how is it a darura? Just admit you want the “American dream” that was marketed to you as a nice big house in a fancy neighborhood. House can be rented while money is saved up. You first buy land then gradually build a house. This is very doable if you are not in a hurry to catch up with the Joneses. Pleasing Allah swt should be our 1st priority. A war with Him and His messenger is not worth it for a stupid house
Jazak Allah Khair!! Am from India where we don't have access to Islamic finance. Thus does qualifies the middle class living in rented accommodation for the home loan here?
Chapter markers are available in description section. No more scrubbing through the progress bar (1:20:00 Summary 1:24:28 Concluding remarks)
please make small videos and make clear questions so that the speaker can give answers to help
May Allah guide me and yasir qazi for this long video..
Wa alaykumassalam wa rahmatullahi wa barakatuh
Assalamu Alaikum Sheikh. I have a question and hoping to get some answers from you. I have a mortgage and I have some stocks. Does it mean, I should liquidate all my savings and pay towards mortgage? Zazak Allah
Subhanallah
Banks arent buyers and sellers of assets. They dont trade in properties.Their operating license doesnt allow them to do so. Give us examples of non banking traders of properties
The only traders that i know of are individuals.
The issue is the buyer doesnt have the funding, so he has to go to a bank.
If he doesnt, he will always be renting
Can Dr Yasir please clarify if the permissibility for Islamic home purchase plans is just restricted to one property or can it be used for more than one? Jazak Allah Khair
Great question.
In reality, the majority of Muslims in the West are involved:
university loans; business premise mortgage; mortgages for places of worship/islamic places of learning; compulsory government pensions; credit cards (for emergencies/emergency purchases or purchases to avoid life becoming difficult) and many other transactions that are technically Islamicly haraam.
However the vast majority of Muslims are involved in these processes not as the transaction giver but as the transactions recipient (customer).
Majority are the customers in such transactions because of a dahoorah (necessity) or a hajar (need) not due to a luxury (non-necessity/non-need).
On top of that some are made compulsory by the western secular laws Muslims live under in non-Muslim countries.
In addition from what I understand there are no real universally accessible halaal alternatives to Muslims in non-Muslim countries. There are some alternatives labelled halaal but upon inspection are not halaal and certainly not widely accessible and available for all Muslims in non-Muslim countries.
Moreover the non-Muslim countries are founded on riba based transactions and contracts of uncertainty/gambling. This is to such an extent that Muslims in non-Muslim countries have no real choice but to be involved directly or indirectly.
Unless non-Muslim countries adopt islamic finance out of choice or become overwhelming Muslim and then implement islamic finance there is no current way for Muslims to completely avoid haraam transactions.
Based upon all that I have said riba transactions seem to be justifiable if there is a dahoorah (necessity) or hajar (need), non-Muslim government compulsion and no alternatives (there are no banking alternatives). You may have alternatives if you know a rich Muslim(s) who will give you a good halaal non-riba based loan.
In the west riba transactions that can be avoided seem to be left the personal sphere:
Muslims buying and selling from each other, giving each other loans and making business partnership deals etc. In this instances we can actively not indulge in riba.
And Allah knows best.
I don’t understand why this matter has become so complex it’s simple RIBA is haram it’s clear giving or taking period
True. Murabaha is the Simple interest we teach kids in grade 5 cuz they can't understand the modern compound interest. Its that simple. Murabaha is a contract on its own but is illegal contract.
Asslamu Alaikum
We live in New Zealand and lots of Muslim brothers and sisters want to buy their house to live as renting is very expensive. But unfortunately we do not have any financial organization who provides Islamic home loan. All the banks here we have follows the traditional rules and apply interest on the given home loan. As a 1st home buyer lots of Muslim brothers and sister are in confusion and they don’t know what would be the best possible solution to solve this problems.
Could you please guide us to take the proper steps and help us to stay away from mistakes.
Jajakallah
I believe the answer to your question is in last part of the video from 1:20:00
Better rent until you accumulate money, or ask loan from your relatives, friends.
Sir I have a question, I invest in a company they give me 2% return of my capital every month out of their dividend keeping my capital safe, is it halal, the company do bussines with hala products
Car insurance is a zaroorah not a hajah .
1)What if you smash into a 4m car . How are you going to pay for it ?
2) it is compulsory requirement of the government as well .
Very difficult to understand what Dr Hatem is saying. I wish he or any subject matter expert would have the clarity of speech that YQ has.
Agree brother. He is very confusing and not too clear. Why do such so called scholars have to make things so complicated and find ways to ease on haram !!!
Should we follow Quran when it's says 'the one who eat or take riba' and doesn't mention 'the one who give riba' or the hadieth?
My question is why it's not mention about the one who gives riba in the ayah of the quran.
So is buying a house on mortgage halal if it's necessary?
Islamic financing make people pay more (more burden) then conventional banks. Specially in the west.
Is it ok to get a morgage but finish it in 5 years not 30 years
That's still riba, expect you pay it off faster.
How halal is renting a property? Aren't you just helping paying off someone else's interest-laden mortgage in a lot of cases especially in the US?
When you go on holiday you are paying for the night so same with rent
You just giving a name does not make it halal giving it fairly without jacking up the price makes it halal
Astagfirullah basically they concluded you can take out a mortgage 😮😢 shocking this is coming from “shuyukh”
Astaghfirullah that a commoner like you who hasn’t studied or dedicated their life to scholarship concludes that you know the truth and scholars don’t
True, it is so sad when we dilute stuff, which is either in the grey area or haram domain. May Allah (swt) guide us to straight paths. Ameen
It's a complicated topic and Shiekh made it even more complex. My head is spinning. Basically you can't get a property through mortgage.
My understanding is that Allah knows that there are and will be poor people who will require to borrow money from rich people and that's why Allah prohibits the rich from taking an Interest,
. The ahadith Contraditc Quran. Please clarify!.
There are always savers and lenders, if they prefer to pay interest as in banking and do not exploit each other, there is no problem. Rich people did not get that way by letting money sit in a bank, they got rich in business and entrepreneurship.
Paying rent is throwing away your money in the garbage.
No its not. you pay for service. matter fact, you pay more taxes then rent. so stop paying taxes!
vert sad the topic is very important and voice of the sheikh is not good quality to hear........
Get over yourself, appreciate the man for his work towards the spread of knowledge. His voice is fine, no need to criticize him for no real reason.
@1:20:00
I appreciated Dr. al-Haj's discussion, the subject's complexities and nuances. However the complexities of these contracts in sharia discussed by Dr. al-Haj are inventions of Islamic scholars, we dont find them in the Quran. Its not a financial textbook. We cannot assert that the complexities of sharia contracts are revelations from Allah.
Èo
Don’t see how the issue is “complicated”. It’s not complicated at all. Rent until you save up to buy in cash. FINISHED. A war with Allah swt and His messenger is not worth it for a stupid house
1. Saving to buy a house is not realistic in most cases. It’s just not possible. That’s why you have Islamic finance products. 2. Buying a house with an Islamic funding is a lot more expensive than conventional mortgage, without however any significant difference in substance between the two (for example you give up the house if you don’t pay, you pay additional margins as interest or fixed markup).
Can you save $450,000? That's the average price of a house and sometimes higher depending on where you live
@@christinesimpson7592 then rent if you can’t afford it. There’s no effect on your everyday life whether you own the house or not. The problem we have is we are concerned about “wasting” money by paying rent but we are not concerned about committing one of the biggest sins in Islam.
المشاركة المتناقصة
why conventional mortgage is so complicated? It is clearly haraam.
Some serious gymnastics going on here man. Wow! On the one hand he essentially said conventional mortgage is acceptable in certain circumstances but on the other hand he said islamic mortgages are not halal lol? Also did he say $500 laptop can be sold for 7% fixed interest over several months and it’s halal? Thank god I am of the belief that Riba/interest is haram end of conversation. I feel bad for anyone who wanted genuine help with this topic because this video couldn’t have been any more confusing and pointless. He basically believe whoever you want, idc 😂
There is no verse in Quran that prohibits giving interest. It’s all about taking an interest. Please clarify it’s very confusing. May Allah guide us on the straight path. Amen!
Because poor people will have the need to borrow money. Is Quran Wrong?
If you can not take interest, then you can not give it to others to take also.
Plus, there are hadeeth on riba.
There are explicit statements talking about not only the lender AND borrower, but even those who cater to the transaction, including the witnesses.
So anybody involved shares in the sin of the riba transaction
Great