Mortgage is a long term loan, usually for a person or family topurchase a house over a long period (30 years). This is fairlycommon in Western societies (perhaps the only way onecould afford or buy a house in those societies).

This practice barely exists in Muslim countries, at least for now.

This involves interest (and a lot of it!), and therefore alternativeshave to found to this method.

Over the past few years, some prominent scholars have allowed Muslims living in Western countries to buy homes using mortgage, on the premise that this is the only way available, and that rent is a long term waste of money.

These include, Yusuf Talal DeLorenzo, Yusuf Al Qaradawi, Mustafa Al Zarqa, Mish`al Al Mubarak, and others.

Of course, this is not allowed in all cases, to all people. There are some restriction to consider. These include that the person engaging in mortgage does not have other assets (such as land or real estate) that could be sold and used to buy a home, that it is his main residence, and not a second mortgage (e.g. investment property), ...etc. Please refer tothe fatwa above for details.

You can read another article on Islamic Halal Finance site on Mortgage.

Some Housing Cooperatives have started (e.g. in Canada, USA) to allowMuslims to buy houses in an interest-free way. Although these offer an alternative, they are still in the early stages, and a lot of learning ishappening. Some even, impose some restrictions on house remodeling, rentinga basement, ...etc.

You can check this list too for other organizations that may offer a mortgage alternative.


  • An-Nur Coop offers home purchase as well as commerical real estate.
  • NO INTEREST Investments Inc. in association with W.H. Stuart & Associates and T.Y. Financial Group Inc. By Jaafer Syed (Jeff Gareau)
  • Lariba Canada offers RRSPs, house financing and loans.
  • UM Financial in Mississauga, Ontario offers a murabhah-based model for home financing as well as RRSPs and RESP.
  • Islamic Cooperative Housing Corporation Ltd. (ICHC) based in Mississauga , Ontario, Canada.
  • Salam Financial based in Ottawa, Ontario.
  • Muslim Investment Group (MIG)
    2446 Cawthra Road
    Block 3 Unit 10
    Mississauga, ON L5A 3K6 Telephone: (905) 275-5250 Fax: (905) 275-0066


  • Manzil UK
    A home purchase plan for U.K. residents.