We are interested in buying a house the halal way here in Toronto [Canada]. Is it possible for you to guide us? Can you suggest any organisations we can contact?

Answer

May I suggest that you carefully study this article on our website: click here.

1. The Canadian form of Land mortgage is almost exactly the same in principle as the English/British Realty mortgage.
 Such a mortgage, although called 'mortgage' in reality is not a mortgage under the Muslim Law. To call it a 'mortgage'  rather than a 'purchase and sale transaction with deferred payments' is therefore just a misnomer. And this is what causes  the problems in the minds of the general Muslim population who just go by the incorrect designation/name given to a  document or a transaction and consequently consider Canadian mortgages to be unlawful under the Shariah. But this is  not the case.

 2. As the title of the article indicates, a land mortgage between a Muslim living in a non-Muslim country (e.g.. Canada)  and and non-Muslim Canadian bank or Mortgage company, is a contract entered into between a Muslim and  a  non-Muslim both living in a non-Muslim country. Interest on such a transaction is absolutely lawful according to the legal  opinions (fatwa) of no less an authority than Imam Abu Hanifah r.a. Other jurists (fuqaha) have different and opposite  opinions. For my part, I prefer to rely on the opinion of Imam Abu Hanifah r.a. as it makes sense to me. The rationale and  the reasoning of Imam Abu Hanifah and other great Ulama and Fuqaha such as Shaikh Abdul Azeez Muhaddith of Delhi  are very persuasive, as far as I am concerned.

 3. Basically the issue involved here is an issue of International law. Legal aspects of extra-territorial jurisdictions, and  even practical difficulties, or the impossibility of applying or enforcing Muslim law in a non-Muslim country, are matters  which are not easy for ordinary Muslims without legal backgrounds to appreciate the nuances or finer points of law. I am  not in any way, either directly of directly, inferring disrespect for the intelligence or common sense of good practising  Muslim people.  I am only trying to point out that, like any other subject, Muslim International law also has its own  special features and one needs a proper legal capability and understanding of difficult, complex and finer points of law. Abu Hanifah and other scholars of this high calibre do indeed possess such capabilities that ordinary people do not.

4.  Now, those who prefer not to follow Imam Abu Hanifah are quite free to do so, but it will make life difficult fo them   in the West. I am of the view that the Islamic principle laid down by the Qur'an and the holy Prophet, p.b.u.h. in relation to making our din easy for us is very important and can only be disregarded at our peril. Our beloved Prophet, p.b.u.h. has also made it clear for our benefit that differences of opinion between Fuqaha in matters of Ijtihad is a blessing. Adopting the legal opinion of one jurist in preference to another jurist, in the odd circumstance or situation, is obviously the right way. Obviously, it goes without saying that one cannot make a practise of picking and choosing from different schools as a normal course of action and thus end up using this concession as a habit. Adopting this principle in practical life should not be abused.