Master the Do’s & Don’ts of Buying a Home and Avoid Common Mistakes
“Whoever among you wakes up secure in his property, healthy in his body, and he has his food for the day, it is as if he were given the entire world.” [Tirmidhi]
What is the Islamic position today for Muslims in the UK on purchasing your own home? As the price of houses increase, the likelihood of owning your own home without some form of interest bearing loan is becoming near on impossible for the average Muslim.
Do you accept the Fatwa that buying a house with a mortgage is acceptable as long as it’s your residential home?
Are Islamic mortgages a genuine Halal alternative?
If they are both haram anyway isn’t it better to get a conventional mortgage because it’s cheaper then?
... are conventional mortgages actually haram in of themselves if you look at the contract?
But too often we rush into buying properties without taking into consideration some crucial factors as part of our decision-making process. Factors which, if bypassed, can lead to us potentially disobeying Allah (SWT), earning His displeasure, and suffering years of regret.
We can become blinded by the excitement of home ownership, and overwhelmed by the confusion, misinformation and lack of practical advice on how to smoothly navigate owning a home.
Sometimes our short-term desires may cloud our thinking and affect our decision making. We may neglect to truly understand what makes a home-buying scheme halal for us on a spiritual level.
However, by understanding the Islamic rules and regulations of home ownership, mastering every step, and correctly understanding the spiritual aspects, you can cut through the confusion. You can confidently find the most suitable home and be one step closer to a successful, comfortable life full of Allah’s blessings.
Can You Confidently Answer the Following Questions?
Are conventional home mortgages actually haram?
What key conditions of contracts make mortgages halal or haram?
Are Islamic mortgages a genuine halal alternative?
If you can’t answer these questions, you need to learn more about home ownership for Muslims.
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Enrol now and learn everything you need to know about buying a home.
The problem with current guidance on Home Ownership for Muslims
If the idea of looking for a home mortgage as a Muslim makes you nervous, it’s understandable!
Although there are some good Islamic lectures which cover the “don’ts” of home ownership for Muslims, there are very few that provide practical advice and a step-by-step guidance on what types of financing you can do, and how to do them.
This, along with misinformation and cultural misguidance, can cause many Muslims to feel frustrated. Others are simply unaware of the basic principles and rulings related to home ownership in Islam.
It’s crucial to learn how to put Islamic finance theory into practice.
Nationally, 51% of Muslims owned their own homes in 2001, compared to 69% of the general population
Home ownership among the Muslim community is decreasing every year. One contributing factor is the lowering of annual incomes, which means home ownership for families and individuals becomes an even more out of reach dream.
As the price of houses also increases, the likelihood of owning your own home without some form of interest bearing loan is becoming near to impossible for the average Muslim.
Although owning a property is now an accepted social norm, an overwhelming number of Muslims are not aware of the halal and haram aspects of mortgages. Muslims therefore fall into unnecessary sins which have a detrimental long-term effect on their financial health now, and spiritual health in the hereafter.
So, how do you find a Halal mortgage?
Beyond the Islamic-sounding name of the financial product banks and other financial institutions may advertise, it takes a lot more effort to both understand the ins and outs of conventional mortgage contracts, let alone choose one that will fit your Islamic financial needs.
It’s simply not enough to say “I’m looking for a halal mortgage”—this is far too vague. What does “halal” really mean? In reality, interpretations of “halal” or “Shariah compliant” are different for everyone.
Do you have a strategy?
After discovering your own spiritual and financial needs, having a strategy for approaching home ownership will ensure that you are laser-focused and don’t waste time researching the wrong banking products or contracts.
Knowing exactly what questions to ask—and having criteria you have set for yourself—means that home ownership will both become easier (by removing the guesswork) and you will have extra time to spend on the fun part: finding your perfect home
Do you know the Islamic rulings?
Having ideas and strategies is crucial. But nothing is more important than conducting yourself in a way that is pleasing to our creator, thereby maximising opportunities for the attainment of Allah’s blessings. Without Allah’s blessings in life, any Muslim will struggle.
Unfortunately, many Muslims do not take the time to learn the Islamic rulings of home ownership in Islam. More often than not, they sign contracts which harm them both financially and spiritually.
It doesn’t have to be confusing
We know you yearn to own a house but don’t want to fall into Riba. You may even have the capital to put a deposit down for a property.
Unfortunately, a lot of information out there related to home ownership is general and mainly theoretical. While it’s important to understand the Islamic rulings of home ownership, what’s commonly missing is a hands-on practical advice for buying a home.
This results in a lack of practical understanding and guidance catered specifically for Muslims living in the 21st century.
It’s time to get clarity on what mortgage options are available.
Introducing the Home Ownership for Muslims Online Course
A complete breakdown of the many Halal options available to Muslims
Home Ownership for Muslims is a comprehensive online course and the first of its kind. It’s designed to help you develop a strategy for home ownership, understand what to look for in mortgage contracts, and determine the right financial products for you.
Learn how to navigate the home-buying process with ease and confidence.
Join an esteemed panel of Islamic Scholars and Finance Specialists on a journey from contemplating buying a home to feeling confident about signing your first contract.
The course clarifies the options available when buying a home, especially with interest-bearing mortgages. This course goes in depth, advising from the Sunnah of the Prophet ﷺ, contemporary Islamic rulings, and the latest research from internationally renowned financial experts.
By following the strategies laid out in this course, you will feel equipped with the tools you need to avoid wasting time, falling into mistakes, and confidently buying your first home.
With a combined 50 years of experience in the Islamic sciences, Islamic banking, and Finance fields, our expert instructors bring a wealth of experience and advice to this course.
For the first time, you will gain access to a synergy of our experts’ personal lessons taken from decades of real-life experience and the latest Islamic finance rulings.
How Can This Course Benefit You?
We designed Home Ownership for Muslims to remove any guesswork regarding buying your home. It will save you time, help you avoid common mistakes, and equip you with the essential do’s and don’ts of financial home-ownership contracts.
Before taking this course, you may:
- Be excited about owning your own home, but have no clue where to start.
- Not know the do’s and don’ts and Islamic rulings about buying a home.
- Have little or no strategy for buying a home or how to determine if the sales contract is right for you.
- Have watched videos and read articles on the subject but still struggle to understand what makes a home-buying contract “halal”.
- Have little or no access to a qualified Islamic scholar or finance specialist to learn from.
- Have questions about conventional home mortgages, especially interest-bearing mortgages.
After taking this course, you may:
- Better understand banking and home finance in Islam and your rights & responsibilities.
- Be able to better understand your financial needs and determine exactly what you’re looking for in a sales contract.
- Have a strategy to find the perfect home, including how to approach a financial institution and what questions to ask.
- Learn how to save time by avoiding incompatible financial products.
- Understand the most detrimental mistakes and how to avoid them.
- Learn the misconceptions regarding Riba and usury.
I'm ready to learn more about home ownership for Muslims
Let's begin this journey..
Topics and Themes Covered in this Course
Part 1 - Our approach to finance
This section allows you to understand key principles if Islamic finance to better understand the context of home purchase schemes
- Islamic Finance
- Ethics within ‘Islamic’ Finance
- Prohibition of riba
- General Principles
Part 2 - Conventional Mortgages
A break of what a mortgage really is, how it’s acquires, its varying types and fatawa that have been issued
- What is a mortgage?
- Mortgage application process
- Mortgage types
- Contemporary opinions and fatawa
Part 3 - Islamic Finance Products
A deep insight into the Islamic mortgages currently on the market
- Cash sale
- Instalment sale
- Diminishing musharaka and review of documentation
- Sale of property without usufruct
- Notional partnership contract
- Relevant Shari’ah Issue
- Role of Scholars
Part 4 - Purchase options currently available on the market
An exclusive segment created specifically for this online course
Breakdown of products currently available on the market: Umer Suleman will deliver an exclusive session on the products currently available for home-purchase, looking at the latest 2020 packages and picking out which ones are suitable, and which ones aren’t.
Part 5 - Islamic Finance, cultivation and unity
Shaykh Dr Haitham Al-Haddad enlightens us with the role of Islamic finance within the world
Meet Your Instructors:
Umer has been actively involved in Islamic Finance for the last decade, working with some of the most notable UK scholars on shariah structuring and process reviews. Umer currently is GM for Wahed UK and Group Head of Risk for Wahed globally, he sits on the board of the UKIFC, is an advisor for the finance arm of the Islamic Council of Europe and is co-Founder of the National Waqf Fund. Umer has also been an advisor for a number of other Islamic Fintechs.
Islamic Banking and Finance Expert and former Bond Trader, Author of the book ‘The Problem With Interest’ and a contributor to the book 'People First Economics'. Tarek El-Diwany holds a BA Hons in Accounting & Finance from the University of Lancaster in the UK (1985) and is a founding partner of Zest Advisory LLP which provides consultancy on matters of Islamic economics to a wide range of institutional clients. Between 1996 and 1998 he headed the Islamic Finance Department at Prebon Yamane in London.
Shaykh Fraz Farhat
Senior Islamic Scholar, Shariah adviser, and graduate of Madina University. Shaykh Fraz advises both individuals and organisations including reviewing of operations to ensure compliance to both the letter and spirit of divine texts. Additionally, appeared on Islamic Q&A programmes such as Eman Channel, Islam Channel and Ramadan TV.
Shaykh Dr Haitham Al-Haddad
Shaykh Dr Haitham al-Haddad is a jurist and UK based Scholar who serves as the Chair of the Fatwa Committee for The Islamic Council of Europe. He has studied Islamic sciences for over 20 years under the tutelage of renowned scholars. He obtained his doctorate on the jurisprudence of Muslim Minorities from SOAS. He specialises in many of the Islamic sciences and, together with his academic background, has an ocean of experience in helping people use Islamic principles as solutions for their everyday lives.
What You'll Receive
Entire 3-Hour Home Ownership for Muslims Online Course
This comprehensive home ownership course contains 4 in-depth, on-demand video lesson modules. The total length of the course is over 3 hours. You get instant access to all the contents immediately when you sign up.
Lifetime Access To The Online Learning Portal
Not only do you get instant access to all the course content, you get lifetime access. This means that you can progress through the course at your own pace and convenience. No rush. And you can go back and review any lesson or chapter anytime.
Comprehensive Course Notes
We wrote these notes to accompany the full-length video course. They include pre-reading material, discussion questions, and exercises. It is both printable and downloadable.
What others say about the course
Listen to success stories and testimonials from current students
“I really enjoyed the different lecturers and how they approached the topic from a balanced perspective”
“I enjoyed being told about how the financial system works and how it is linked to other aspects (political)”
“Excellent delivery and explanation of practical advice on what we can do to avoid riba and help the ummah”
"I didn't know much about mortgages as a whole, but this course taught me about mortgages on a holistic level both Islamically as well as on a economical level."
I'm Ready To Prepare for Home Ownership
Let's begin this journey..
Frequently Asked Questions
Still have some questions about the course? See the answers to some of the most common questions below.