Rules Regarding the Current Method of Rent and Mortgage
Issue No.1975- It is a common practice among some people that they give a deposit to the owner of the house and take the house as a mortgage on the condition that they pay less rent, or pay no rent at all (such a house is usually referred to as a mortgaged house), this is usury and haram. The correct method is that the owner should first rent out the house to the tenant for an amount, though little, and he stipulates in the lease contract that the tenant should give him a specified amount of loan and the house will be as mortgage against it, in this case it will not be usury, and it will be halal.
