Is Islam Allows Buying House On Bank Loan or Not ?

Buying house is a dream of every individual, but achieving this dream is not that easy as it seems. Some people take bank loan when buying the house for themselves. But what Islam says about this? Does it permit it or not? This article will answer this question of yours.

House is the basic necessity of a person. You are blessed if you have your own home. So, every person tries to buy his/her own house at any cost. Someone tries to save money by buying house, someone borrows money from relatives. There is nothing wrong with these options these are halal. But then someone who is not in the position to save money and borrow from relatives then he or she decides to take a loan from the bank to buy own house. But many of them remain to confuse either it is halal to take the loan from a bank or not? So, no problem we are here to discuss it. And try to figure out the most authentic answer.
When you take a loan from the conventional bank they give you the loan on the interest basis. Or you can say they give you the loan on the Riba system. You have to give them the fixed rate of interest for the whole period of the loan or the whole age of loan. And when we hear the word of interest then obviously we should understand that this is not our type of interest. This is haram and prohibited by Islamic rules. To live in a rental house is more good rather than to live in own interest base loan house.

But everything has an alternative. So now we talk about another type of loan from the bank you can use while buying house. Non-conventional or Islamic banks grant interest-free loan which is called goodly loan or in simple language it is called qard-e-hasna. They just give you an interest-free loan. You have to return the actual amount loan neither less nor more. Their aims are to follow the Islamic rules. So if we take the goodly loan from a bank to buy the house then there is nothing wrong with it. Always keep your journey towards halal. ALLAH will definitely show His mercy in your favor.
And whosoever fears Allaah and keeps his duty to Him, He will make a way for him to get out (of every difficulty). And He will provide for him from (sources) he could never imagine. And whosoever puts his trust in Allaah, then He will suffice him. Verily, Allaah will accomplish his purpose. Indeed Allaah has set a measure for all things.” [al-Talaaq 65:2-3]

May Allaah make our transactions halaal.


  1. There are many issues in it. No Islamic bank is giving Qard hasan to by the home. Instead they offer partnership to buy the home but it costs higher than conventional banks in certain cases. Buying the home in western world in very challenging and it is better to rent the house rather than indulging in interest based activities.

  2. Also, the number of Islamic Bank is very less. If there is no other way but taking the home loan from national bank will that be halal? If not then how a common man will lead normal life? Leaving in rent house is not a secure way for family as well. Now a days if we see the price of any house it is almost impossible to own that without taking loan.

  3. Dear Unknown, What Allah and His Messenger SAW declared Haram, is haram. So there is no way to make that Halal.
    Coming to your question how a common man lead a normal life, one answer is my personal experience. I've spent around 4 years in Canada and we lived on rented apartment. Alhamdulillah we lead a normal life without any difficulty. Before landing to Canada we had decided that if we had to face any compromise over Halal and Haram, the very next day we will fly back. And Alhamdulillah we never faced any difficulty and spent a normal life. So believe me that it is very secured to rent a house because of two factors, 1- It is Halal, 2- There is barakah as you are following the commandment of Allah in a challenging environment.
    Very true, as it is very hard to buy a home in cash. So I'll suggest you to try to save a little continuously and then buy a home in a suburban area on cash. As I am doing that, Allah enabled me to do some saving and now I am trying to buy in Windsor, instead of Toronto where is price of house is doubled to that in Windsor.

  4. As salam alaykum. This is brother Bocar 44 years. I live with my family almost 15 persons in two rented houses and I refused to take a loan from classic banks even after a terrible pressure from family members (wife, brother, uncle…). I even quit my bank to avoid any temptation and I decided one day Allah will not give me a house in this world and I was satisfied with that. One day my boss called me and say he is not satisfied with my job and we decided to separate. The amount he offered me was enough to buy a land and built a house and it was the first thing I did. Since 4 months I live my home al hamdu lillah and I am looking for another job to support and sustain my family. I am really confident about future and thankful to Allah swt for this surprise.Let us make Duas for each other and avoid completely what Allah has declared HARAM. Jazakumullahu hayrann.

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