22 Nov, 2017 | 3 Rabiul Awal, 1439 AH

Hope you are well. 1.I am still struggling to find the definite answer for the Home mortgages via conventional bank including Riba. I found some details when there is a "need and necessity " and I am still confused that this ruling the way is being used in Canadian society does not give me the clear understanding of it. Kindly elaborate how to define the boundaries with some examples of canadian ppl lives where it might be considered permissible to buy house using conventional banking. 2. I need to know about any halal RESPs available in Canada and what to check while selecting that. 3. Do we have any halal mortgages available in Canada ,I am willing to pay higher price and put more efforts if I can get halal option available in the society.Below is the list I have from the internet but not sure how authentic they are . Home Mortgage: Al-Ansar Housing Cooperative Housing Corporation Ltd. (website) An-Nur (Ontario) Housing Cooperative Corp. Ltd. (website) Assiniboine Credit Union(website) Islamic Credit Union of Canada (website) Qurtuba Housing Cooperative & Al-Ittihad Investment Inc (website) UM Financial [(dissolved, see full entry by clicking on the name)] Mutual Funds frontierAlt Capital Corporation (website) Global Prosperata Funds (website) 4.is it ok to buy health insurance if not must. 5.is it ok to buy comprehensive car insurance instead of 3rd party liability which is required by law . I live in Toronto . JazakAllah Khair. Muhammad

Your few questions are very clear while few are vague and not clear. Kindly explain your unclear questions in detail and resend those.

1. Is there exist any Mortgage in Canada which is permissible/ “Jaiz”(Shariah Compliant)?

2. Is Health insurance permissible in Islam? What are the rulings for health insurance?

الجواب حامدا ومصلیا

1. Before answering the asked question in particular, explanation of Mortgage is very important so  that context of asked question gets cleared.

Mortgage literally means “RehenRakhna” (A legal agreement that conveys the conditional right of ownership on an asset or property by its owner (the mortgagor) to a lender (the mortgagee) as security for a loan).

In present day banking terms, a legal agreement by which a bank, building society, etc. lends money at interest in exchange for taking title of the debtor's property, with the condition that the conveyance of title becomes void upon the payment of the debt.

Secondly,  it is important to understand that Riba deal is strictly Forbidden according to Quran and Hadith and this ruling is applicable both in Muslim  and non-Muslim countries. That’s why, according to most renowned Islamic scholars involvement in any deal which has Riba, even with non-Muslims is forbidden and not permissible. So, while residing in non-Muslim states/ countries one must totally avoid doing any kind of deal with Banks involving Riba.

Having considered the fundamental context, let us now come to answer of your your asked question. It is not permissible to obtain a house through Mortgage (a deal agreement involving debt and Riba) because in reality it is a process of debt involving Riba and taking or giving Riba (any type and anywhere) is strictly forbidden in Islam (as discussed earlier).

However,   solution for such people (who have to buy house in any case) is that they purchase the house through some islamic banking system based on paradoxical 'Musharakah' working under the supervision of authentic Ulema (Islamic scholars).

 

2. Prevailing working system of Insurance companies is based on Riba and gambling and is forbidden. Therefore, it is mandatory for oneself to strictly avoid Insurance. However, Ulema (Islamic  scholars) have introduced alternate system of Insurance which is called “Takaful” for the benefit of public. Nowadays, number of Shariah compliant Takaful companies are working under the supervision of “MustanadUlema (Islamic scholar)” and using their products and doing deals through them is permissible.

 

فی فقه البیوع: 2/770)

الربافی دارالحرب

جمهور الفقهاء علی أن دار الاسلام و دار الحرب سواء فی حرمة الربا. ولایجوز لمسلم أن یرابی کافرا حربیا کما لايجوز له أن یرابی مسلما. وهو قول مالك والشافعی وأحمد وأبی یوسف رحمهم الله.... ثم إن الشیخ اشرف علی التهانوی رحمه الله راجع المسئلة فی رسالة أخری، ورجح مذهب  الجمهور علی أساس قوۃ الدلیل، وذهب إلی أن مذهب الجمهور هو الراجح والمتعین للإفتاء فی زماننا.

واللہ اعلم بالصواب

احقرمحمد ابوبکر صدیق  غفراللہ لہ

دارالافتاء ،معہد الفقیر الاسلامی، جھنگ

۲۸؍محرم الحرام؍۱۴۳۷ھ

۳۰؍اکتوبر ؍۲۰۱۶ء