A conventional mortgage is an interest-bearing loan, so the majority of scholars hold it is riba and not permitted. Buying on credit and giving your property as security are both halal in themselves; what makes a mortgage haram is the interest. Structures without interest, such as Islamic home finance, are the halal route.
Two things are bundled together in a mortgage, and it helps to separate them.
The security is not the problem. The Prophet ﷺ bought food on credit for a fixed period and pledged his
armour as security 1, and he died while his armour was still pledged to a Jewish man for barley 2. The Quran also
mentions a pledge held as security for a debt 3. So borrowing, paying later and pledging an asset are all
allowed.
The interest is the problem. A conventional mortgage lends you money and charges you an agreed increase over
time. That is the riba that Allah forbade when He "permitted trade and forbade interest" 4. Believers are told to
give up whatever interest remains and keep only their principal 5, and the Prophet ﷺ cursed the one who pays
interest as well as the one who takes it 6. The borrower is not exempt just because the bank is the one
profiting.
The halal alternatives change the contract, not just the name. Common models include murabaha (the
financier buys the house and sells it to you at a known, fixed marked-up price, paid in instalments), ijarah
(lease-to-own), and diminishing musharakah (you and the financier co-own the house; you pay rent on its share
and gradually buy it out). These are sales, leases and partnerships, which is exactly the "trade" Allah permitted
4. Their quality depends on the provider and its Shariah board, so ask how the contract actually works.
If buying a home seems impossible right now, renting is not a failure. Allah promises that whoever fears Him, He
"will make for him a way out" and provide for him from where he does not expect 7.
The evidence
1
HadithSahih al-Bukhari 2509
SahihBukhari
The Prophet ﷺ bought food on credit for a limited period and pledged his armour for it.
Narrated `Aisha:The Prophet (ﷺ) bought some foodstuff on credit for a limited period and mortgaged his armor for it
العربية
حَدَّثَنَا مُسَدَّدٌ، حَدَّثَنَا عَبْدُ الْوَاحِدِ، حَدَّثَنَا الأَعْمَشُ، قَالَ تَذَاكَرْنَا عِنْدَ إِبْرَاهِيمَ الرَّهْنَ، وَالْقَبِيلَ فِي السَّلَفِ، فَقَالَ إِبْرَاهِيمُ حَدَّثَنَا الأَسْوَدُ عَنْ عَائِشَةَ ـ رضى الله عنها ـ أَنَّ النَّبِيَّ صلى الله عليه وسلم اشْتَرَى مِنْ يَهُودِيٍّ طَعَامًا إِلَى أَجَلٍ وَرَهَنَهُ دِرْعَهُ.
2
HadithSahih al-Bukhari 2916
SahihBukhari
He died while his armour was pledged to a Jew for barley, so a secured credit purchase is lawful.
Narrated `Aisha:Allah's Messenger (ﷺ) died while his (iron) armor was mortgaged to a Jew for thirty Sas of barley
العربية
حَدَّثَنَا مُحَمَّدُ بْنُ كَثِيرٍ، أَخْبَرَنَا سُفْيَانُ، عَنِ الأَعْمَشِ، عَنْ إِبْرَاهِيمَ، عَنِ الأَسْوَدِ، عَنْ عَائِشَةَ ـ رضى الله عنها ـ قَالَتْ تُوُفِّيَ رَسُولُ اللَّهِ صلى الله عليه وسلم وَدِرْعُهُ مَرْهُونَةٌ عِنْدَ يَهُودِيٍّ بِثَلاَثِينَ صَاعًا مِنْ شَعِيرٍ. وَقَالَ يَعْلَى حَدَّثَنَا الأَعْمَشُ دِرْعٌ مِنْ حَدِيدٍ. وَقَالَ مُعَلًّى حَدَّثَنَا عَبْدُ الْوَاحِدِ حَدَّثَنَا الأَعْمَشُ وَقَالَ رَهَنَهُ دِرْعًا مِنْ حَدِيدٍ.
And if you are on a journey and cannot find a scribe, then a security deposit [should be] taken. And if one of you entrusts another, then let him who is entrusted discharge his trust [faithfully] and let him fear Allah, his Lord. And do not conceal testimony, for whoever conceals it - his heart is indeed sinful, and Allah is Knowing of what you do
Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, "Trade is [just] like interest." But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein
5
Quran Al-Baqara · 2:278–279
Give up remaining interest and keep only the principal.
278 O you who have believed, fear Allah and give up what remains [due to you] of interest, if you should be believers 279 And if you do not, then be informed of a war [against you] from Allah and His Messenger. But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged
6
HadithSahih Muslim 1598
SahihMuslim
The payer of interest is cursed along with the taker, the scribe and the witnesses.
Jabir 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
العربية
حَدَّثَنَا مُحَمَّدُ بْنُ الصَّبَّاحِ، وَزُهَيْرُ بْنُ حَرْبٍ، وَعُثْمَانُ بْنُ أَبِي شَيْبَةَ، قَالُوا حَدَّثَنَا هُشَيْمٌ، أَخْبَرَنَا أَبُو الزُّبَيْرِ، عَنْ جَابِرٍ، قَالَ لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَكَاتِبَهُ وَشَاهِدَيْهِ وَقَالَ هُمْ سَوَاءٌ .
7
Quran At-Talaaq · 65:2–3
Whoever fears Allah, He makes a way out for him and provides from where he does not expect.
2 And when they have [nearly] fulfilled their term, either retain them according to acceptable terms or part with them according to acceptable terms. And bring to witness two just men from among you and establish the testimony for [the acceptance of] Allah. That is instructed to whoever should believe in Allah and the Last day. And whoever fears Allah - He will make for him a way out 3 And will provide for him from where he does not expect. And whoever relies upon Allah - then He is sufficient for him. Indeed, Allah will accomplish His purpose. Allah has already set for everything a [decreed] extent
This answer was compiled with the help of AI, using only the verified texts shown here. Every reference links to its source. If you find a mistake, please report it. Updated 2026-09-24