Question:

I am already à owner of a house. I will insha allah end the payments next year. I am a single woman for many years now and work for myself as my kids grown-ups now and live on their own with their families. I began working as a professional late as I was taking care of my kids for almost two decades. Now, I work full time but when I reach the retirement age (65 years), my wages will decrease drastically and I will have not enough years to access full pension wages, otherwise to have the full percentage I will have to work until 75 years !!!

In this context , I have in mind to try to buy another property, a duplex that would bring me a monthly wage with the rent of an apartment when I retire. Now my idea is to buy the building, renting the both apartments to pay the mortgages. When I will be ready to sell my property, I will be able to get a free mortgage. I am not able to sell it now.

I would like to know if this is allowed for me in my circumstances. Thank you.

Answer:

In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ʿalaykum wa-rahmatullāhi wa-barakātuh.

Dear sister,

Your concerns about securing yourself financially prior to your retirement are completely understandable. Being self-sufficient is highly commendable. At the same time, in pursuance of this goal, it is necessary to ensure that Allāh is obeyed at all times.

Of the warnings given in the Qurʿān, one of the most terrifying is that of the consequences of engaging in interest-bearing transactions.

يَا أَيُّهَا الَّذِينَ آمَنُوا اتَّقُوا اللَّهَ وَذَرُوا مَا بَقِيَ مِنَ الرِّبَا إِن كُنتُم مُّؤْمِنِينَ٠ فَإِن لَّمْ تَفْعَلُوا فَأْذَنُوا بِحَرْبٍ مِّنَ اللَّهِ وَرَسُولِهِ (سورة البقرة: ٢٤٨-٢٤٩)

“You who believe, beware of Allāh: give up any outstanding dues from interest., if you are true believers. If you do not, then be warned of war from Allāh and His Messenger.” (2:248-249).

Additionally, Rasūlullāh ﷺ, who is a mercy for mankind, cursed all those involved in an interest-bearing transaction, whether they are the lender, borrower, or a facilitator.[1] Other severe warnings are also found in the aḥādīth.[2]

The nature of these warnings is such that a believer will shudder in fear and strive to do whatever is in their power to save themselves from them. As such, engaging in interest-bearing transactions, whether as a lender or as a borrower, is prohibited.

In your case, we suggest the following:

1. Try to secure personal, interest-free loans or partnerships from relatives and friends. These can be used to purchase the property, and the rent received can be used to pay the loans back.
2. Find Sharīʿah compliant Islamic finance companies and secure a loan through them. Some companies in the U.S. and Canada have been vetted and approved for Sharīʿah compliancy by reliable muftīs. In Canada we have reviewed and approved Manzil Murabaha (manzil.ca) as well as Eqraz (www.eqraz.ca).
3. Look into other investment opportunities that do not necessitate taking loans in the first place.

If you do feel there is more information that is pertinent to your situation, please feel free to reach out to us again.

And Allah Ta’āla Knows Best

Muftī Mohammed Wahaajuddin
Farmington Hills, MI
U.S.A

Checked and Approved by:

Muftī Faisal bin Abdul Hamīd al-Mahmūdī
Darul Iftaa Canada, Edmonton
www.fatwa.ca

[1] سنن أبي داود، كتاب البيوع، #3333
حَدَّثَنِي عَبْدُ الرَّحْمَنِ بْنُ عَبْدِ اللَّهِ بْنِ مَسْعُودٍ، عَنْ أَبِيهِ، قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَشَاهِدَهُ وَكَاتِبَهُ

[2] سنن ابن ماجه، باب التغليظ في الربا، #2274
عَنْ أَبِي هُرَيْرَةَ، قَالَ قَالَ رَسُولُ اللَّهِ ـ صلى الله عليه وسلم ـ ‏ “‏ الرِّبَا سَبْعُونَ حُوبًا أَيْسَرُهَا أَنْ يَنْكِحَ الرَّجُلُ أُمَّهُ