Question
(#261)
Country : New Zealand
Assalaamu alaikum wa rahmatullahi wa barakaatuhu I want to buy a house. I would like to buy a house on loan without paying interest. What should I do if the bank doesn’t give option to avoid interest. In New Zealand no payment happens without paying interest. At this day and age, renting a house every six to 12 months the rent increases by 30-50 dollars. Plus when renting a house you don’t have much freedom in your home if you want to build something, cook something or keep pets or make something. I went through the qur’aan which talks about consumption of riba declares war with Allah and Hadith of the prophet which mentions consumption, giving and writing contract for riba that person is cursed. Living in this day and age if you want something it’s so expensively overpriced when you’re in need of it you have no option but to get it in payment. And when you do payment you have to do payment with interest. Since in New Zealand we can avoid consumption of riba but when we pay for something we can’t. My question is since sharia law does not apply in nz Is it okay for me to get a loan that involves interest to pay for things, such as house or car ?
Answer
بسم الله الرحمن الرحيم
السلام عليكم و رحمة الله و بركاته
حامدا و مصليا و مسلما
Muhtaram
We have received your query regarding interest, our response is as follows:
Please refer to the following answer of the Darul Ifta on a similar question:
Allah Ta’ala mentions in the Noble Quran with regards to interest :
الَّذِينَ يَأْكُلُونَ الرِّبَا لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ الَّذِي يَتَخَبَّطُهُ الشَّيْطَانُ مِنَ الْمَسِّ ۚ ذَٰلِكَ بِأَنَّهُمْ قَالُوا إِنَّمَا الْبَيْعُ مِثْلُ الرِّبَا ۗ وَأَحَلَّ اللَّهُ الْبَيْعَ وَحَرَّمَ الرِّبَا ۚ فَمَنْ جَاءَهُ مَوْعِظَةٌ مِنْ رَبِّهِ فَانْتَهَىٰ فَلَهُ مَا سَلَفَ وَأَمْرُهُ إِلَى اللَّهِ ۖ وَمَنْ عَادَ فَأُولَٰئِكَ أَصْحَابُ النَّارِ ۖ هُمْ فِيهَا خالدون
“Those who consume interest shall not stand up (on the Day of Qiyaamah) except like him whom the Shaytaan has driven mad by his touch. This (punishment) is because they say, “Trade is just like interest!” Allaah has permitted trade and forbidden interest. (Referring to those who took interest before this verse was revealed, Allaah says) The one to whom the advice from his Rabb (to give up interest) had come and he refrained (from interest), then for him is that (amount) which has passed and his affair rests with Allaah (Allaah shall decide his affair). Those who return (to dealing in interest, regarding it to be Halaal like trade) are indeed the dwellers of the Fire where they shall live forever.)”
(Surah Baqara 275)
Allah Ta’ala mentions in another place in the Holy Quran:
فَإِن لَّمْ تَفْعَلُواْ فَأْذَنُواْ بِحَرْبٍۢ مِّنَ ٱللَّهِ وَرَسُولِهِۦ ۖ
وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَٰلِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ
“If you do not (avoid interest), then be warned of war from Allaah and His Rasool (Sallallaahu Alayhi Wasallam). If you repent then you may have (only) your principal amount (the amount that you lent). Oppress not and you shall not be oppressed. ”
(Surah Baqarah 279)
Rasoolullah Sallalahu Alayhi Wasallam mentions –
عَنْ جَابِرٍ رضي الله عنه قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَكَاتِبَهُ وَشَاهِدَيْهِ وَقَالَ هُمْ سَوَاءٌ .
Hadrat Jabir radiyallahu anhu said that Allah’s Messenger (ﷺ) cursed the accepter of interest and its payer, and one who records it, and the two witnesses, and he said: they are all equal.
(Sahih Muslim- 1598)
عَنْ عَبْدِ اللَّهِ، قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُؤْكِلَهُ. قَالَ قُلْتُ وَكَاتِبَهُ وَشَاهِدَيْهِ قَالَ إِنَّمَا نُحَدِّثُ بِمَا سَمِعْنَا
Hadrat Abdullah bin Mas’ud radiyallahu anhu said that Allah’s Messenger (ﷺ) cursed the one who accepted interest and the one who paid it I asked about the one who recorded it, and two witnesses to it. He (the narrator) said: We narrate what we have heard.
(Sahih Muslim- 1597)
عَنْ أَبِي هُرَيْرَةَ، قَالَ قَالَ رَسُولُ اللَّهِ ـ صلى الله عليه وسلم:
“ الرِّبَا سَبْعُونَ حُوبًا أَيْسَرُهَا أَنْ يَنْكِحَ الرَّجُلُ أُمَّهُ
Hadrat Abu Hurairah radiyallahu anhu said that Allah’s Messenger (ﷺ) said: “There are seventy degrees of usury, the least of which is equivalent to a man having intercourse with his mother.”
(Sunan Ibn Majah 2274)
It is clear from the above Ayaat of the Holy Qur’an and the Ahadith of Rasoolullah Sallalahu Alayhi wasallam that a Muslim should avoid interest at all costs. Buying a house using a conventional mortgage involves interest , therefore one should abstain from interest in order to save oneself from the curse of Rasoolullah Sallalahu Alayhi wasallam. The issues of this temporary abode will come to an end, however, the terrible calamities of the hereafter are never-ending. Our focus should be the hereafter.
We should also keep the following in mind :
- Rent does not go to waste; rather, we should think of it is as an investment for the hereafter .
- Our focus should be on the hereafter.
- Allah Ta’ala will open the way if we adopt Taqwa. This is the promise of Almighty Allah Ta’ala.
- A solution may be that if a few like-minded brothers come together and purchase some land on the outskirts of the bigger cities. In this manner, each person will be able to build their own house on the land and be saved from the shackles of Riba.
- Lastly , we should understand that the prohibition of interest is very clear in the Quran and Hadith, and there is no room for interpretation . Thus, the opinions which permit an interest-bearing loan will be disregarded due to the clear text of the Noble Qur’an and the Ahadith on its impermissibility.
And Allah Ta’ala knows best
Answered by:
Muhammad Irshad Motara
17th Jumaadul Ula 1447
9th November 2025