Short answer
The great majority of institutions forbid interest-bearing mortgages, even to provide oneself with a home (International Islamic Fiqh Academy, resolution 50; Diyanet). The European Council for Fatwa and Research permitted them in 1999 for the main residence of Muslims in Europe with no alternative, out of necessity; Dar al-Ifta of Egypt also accepts them. Where it exists, Islamic home finance (diminishing musharakah, ijarah, murabaha) is the recommended route.
What the institutions say
Official positions, with their reference. The badge sums up the institution’s position, not an opinion of Assabile.
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International Islamic Fiqh Academy Organisation of Islamic Cooperation, JeddahProhibited
Housing is an essential need, but interest-bearing home loans, “whether small or large”, are prohibited. Lawful alternatives: an interest-free public loan, instalment sale, off-plan purchase (istisna’), leasing.
Resolution 50 (1/6), Jeddah, March 1990
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Diyanet Presidency of Religious Affairs, Türkiye (High Council of Religious Affairs)Prohibited
All interest-bearing credit is forbidden; financing from participation banks (murabaha, icâre, i.e. ijarah, and tasarruf finansman, savings-based home finance, under conditions) is the alternative.
Fatwas on interest-bearing credit (2020); the High Council’s denial (2020) of a supposed favourable opinion
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European Council for Fatwa and Research European Council for Fatwa and Research, DublinUnder conditions
For a Muslim in Europe who has no home, permits buying a main residence with an interest-bearing loan if he cannot afford to buy it otherwise and there is no accessible Islamic alternative, treating this general need as a necessity. A disputed, minority view.
4th session, Dublin, 27-31 October 1999
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Dar al-Ifta of Egypt House of Fatwa, CairoPermitted
Bank home finance is a financing contract, not an interest-bearing loan; it is permissible. A minority view.
Fatwas on bank home finance (Egypt)
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AMJA Assembly of Muslim Jurists of AmericaProhibited
A limited income does not in itself constitute a necessity that permits an interest-bearing loan; buying through Islamic finance companies with no explicit interest is accepted.
Resolutions of the fatwa committee (United States, 2014); opinions on necessity
Positions are reported as they stand; other scholars may hold other views. Method and disclaimers
Depending on your country
- France
- In 2026, only one Islamic window of a bank offers home murabaha to individuals in France, with a large deposit (see the directory). Otherwise, the options are buying outright, compliant savings, the prêt à taux zéro (state-backed zero-interest loan) within the limits of its conditions, a family loan, or the opinion of the European Council for Fatwa and Research for those who follow it.
- Belgium
- No Islamic bank offers home finance in 2026; the same options as in France apply.
- United Kingdom
- Several providers offer “Home Purchase Plans” based on diminishing musharakah or ijarah, regulated like mortgages: see the guide to the United Kingdom and the directory.
- Morocco
- Participative banks offer home murabaha and ijarah, approved by the Shariah Committee: see the guide to Morocco.
- Algeria
- Al Baraka, Al Salam and the Islamic windows of state-owned banks offer home finance through murabaha or ijarah.
- Türkiye
- Participation banks finance housing (konut finansmanı); tasarruf finansman companies (savings-based home finance) are accepted by Diyanet under conditions (2025/66).
- United States
- Several companies offer financing through diminishing musharakah or ijarah; AMJA accepts them when the contract contains no explicit interest.
The majority position
For the International Islamic Fiqh Academy, housing is an essential need that must be met by lawful means; interest-bearing home loans are prohibited, whatever the rate (resolution 50 (1/6), 1990). It cites as alternatives the interest-free public loan, instalment sale, off-plan purchase through istisna’ and leasing. Diyanet, the Saudi bodies and AMJA in the United States share this position; AMJA specifies that a limited income is not enough to constitute a necessity.
The opinion of the European Council for Fatwa and Research (1999)
Meeting in Dublin from 27 to 31 October 1999, the European Council for Fatwa and Research first restated the prohibition of riba and called for Islamic alternatives to be developed. It then permitted a Muslim in Europe to buy his main residence with an interest-bearing loan, under strict conditions: not already owning a home, not having the means to buy otherwise, and not finding an accessible Islamic alternative. It relied on the rule that a general need is treated like a necessity. This opinion remains a minority one, criticised by many scholars, and covers neither buy-to-let investment nor a second home.
Islamic home finance
- Diminishing musharakah: you buy together with the bank, rent its share and gradually buy it out (United Kingdom, Türkiye, the Gulf, United States).
- Ijarah: the bank buys the home and leases it to you, then transfers it to you at the end by a separate contract.
- Murabaha: the bank buys the home and resells it to you at a higher price, payable in monthly instalments (notably in North Africa).
The cost is often close to that of a loan, because prices follow the market; the difference lies in the contract: ownership, risk, a fixed price, no late-payment interest. Compare with the conventional loan / Islamic finance comparison tool.
When there is no Islamic offer in your country
The options remain saving up to buy outright, interest-free help from family, interest-free public loans (checking their fees and insurance), renting, or, for those who follow it, relying on the opinion of the European Council. For a personal case, consult a scholar who knows your situation.
The verses
ٱلَّذِينَ يَأْكُلُونَ ٱلرِّبَوٰا۟ لَا يَقُومُونَ إِلَّا كَمَا يَقُومُ ٱلَّذِى يَتَخَبَّطُهُ ٱلشَّيْطَٰنُ مِنَ ٱلْمَسِّ ذَٰلِكَ بِأَنَّهُمْ قَالُوٓا۟ إِنَّمَا ٱلْبَيْعُ مِثْلُ ٱلرِّبَوٰا۟ وَأَحَلَّ ٱللَّهُ ٱلْبَيْعَ وَحَرَّمَ ٱلرِّبَوٰا۟ فَمَن جَآءَهُۥ مَوْعِظَةٌ مِّن رَّبِّهِۦ فَٱنتَهَىٰ فَلَهُۥ مَا سَلَفَ وَأَمْرُهُۥٓ إِلَى ٱللَّهِ وَمَنْ عَادَ فَأُو۟لَٰٓئِكَ أَصْحَٰبُ ٱلنَّارِ هُمْ فِيهَا خَٰلِدُونَ ٢٧٥
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 Allāh 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 Allāh. But whoever returns [to dealing in interest or usury] - those are the companions of the Fire; they will abide eternally therein.
يَٰٓأَيُّهَا ٱلَّذِينَ ءَامَنُوا۟ ٱتَّقُوا۟ ٱللَّهَ وَذَرُوا۟ مَا بَقِىَ مِنَ ٱلرِّبَوٰٓا۟ إِن كُنتُم مُّؤْمِنِينَ ٢٧٨ فَإِن لَّمْ تَفْعَلُوا۟ فَأْذَنُوا۟ بِحَرْبٍ مِّنَ ٱللَّهِ وَرَسُولِهِۦ وَإِن تُبْتُمْ فَلَكُمْ رُءُوسُ أَمْوَٰلِكُمْ لَا تَظْلِمُونَ وَلَا تُظْلَمُونَ ٢٧٩
278 O you who have believed, fear Allāh 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 Allāh and His Messenger. But if you repent, you may have your principal - [thus] you do no wrong, nor are you wronged.
The hadiths
They are all equal.
لَعَنَ رَسُولُ اللَّهِ صلى الله عليه وسلم آكِلَ الرِّبَا وَمُوكِلَهُ وَكَاتِبَهُ وَشَاهِدَيْهِ وَقَالَ هُمْ سَوَاءٌ .
Frequently asked questions
I already have an interest-bearing mortgage: what should I do?
Scholars advise repentance and, if it is possible without serious harm, repaying early or refinancing with Islamic finance. The contract of sale for the home, however, remains valid: you are the owner.
Is a loan permitted for a buy-to-let investment?
No, even for those who follow the opinion of the European Council: its permission covers only the main residence, out of necessity.
Is Islamic finance more expensive?
Often slightly, because of fees and lower volumes, but not always. The comparison tool shows the monthly payment, the total cost and the equivalent rate for both options.