I already have a mortgage. What now?
Your house is not haram. Here is what you owe Allah, and how to get out.
You signed your mortgage years ago. Back then nobody told you it was a problem, or you told yourself it was fine.
Now you know more. Every month the payment leaves your account, and every month it feels heavier. Some nights you lie awake wondering if the house you live in is haram.
If you already have a mortgage with interest, this post is for you.
Is my house haram?
No. Even scholars who are strict about riba say the sin is in the interest, not in the walls.
Saudi Arabia's standing committee of senior scholars was asked about a man who built his home with an interest loan. They told him not to knock it down. Repent, and live in it. The official fatwa office in Jordan said the same: you do not have to sell.
So you can stay. Your children can grow up in that house without you carrying guilt for every room.
Then what do I owe Allah?
Repentance. Scholars describe it in three parts: you regret what you did, you ask Allah to forgive you, and you firmly decide not to do it again.
Nabi ﷺ said: regret is repentance. That heavy feeling you have been carrying is already the first step.
And Allah says do not lose hope in His mercy, because He forgives all sins. Even in the verses that warn of war over riba, He leaves the door open: if you repent.
If you took the mortgage in real need, following scholars who allowed it, you acted on their word. That is not the same as ignoring Allah. But getting out when you can is still the safer road.
Should I stop paying?
No. The Jordan fatwa is clear that you keep paying your installments.
Stopping does not undo the contract. It brings late fees and more interest, hurts your credit, and can cost your family the house. You would end up paying more riba, not less.
So how do I get out?
Slowly, and without making it worse.
First, add nothing new. No cash-out refinance, no home equity loan, no second mortgage. Each one is a fresh riba contract on top of the old one.
Second, ask an Islamic home finance provider if they refinance. Some will buy out what you still owe and switch you to a murabaha or a partnership. From that day on, there is no more interest.
Third, pay extra when you can. Every extra dollar goes to the loan itself and cuts the interest still to come. Scholars say you are not required to borrow to do this, so pay from what you have, not from another loan.
What to do
- Repent tonight: regret it, ask forgiveness, decide not to go back to it.
- Keep paying every installment on time.
- Call one Islamic home finance provider this week and ask if they refinance.
- Put any spare money toward paying the loan down early. Check first that there is no penalty for it.
What not to do
- Do not stop paying to get out of the contract.
- Do not take a cash-out refinance or a home equity loan.
- Do not sell your family's home out of guilt. Scholars did not ask that of you.
- Do not let shame keep you from asking a scholar about your own situation.
One last thing
Tonight, before you sleep, say the dua Nabi ﷺ called the master of all duas for forgiveness. He said whoever says it at night with full belief and dies before morning will be among the people of Paradise.
The master of seeking forgiveness
Sayyid al-Istighfar
اللَّهُمَّ أَنْتَ رَبِّي لَا إِلَهَ إِلَّا أَنْتَ، خَلَقْتَنِي وَأَنَا عَبْدُكَ، وَأَنَا عَلَى عَهْدِكَ وَوَعْدِكَ مَا اسْتَطَعْتُ، أَعُوذُ بِكَ مِنْ شَرِّ مَا صَنَعْتُ، أَبُوءُ لَكَ بِنِعْمَتِكَ عَلَيَّ، وَأَبُوءُ لَكَ بِذَنْبِي، فَاغْفِرْ لِي فَإِنَّهُ لَا يَغْفِرُ الذُّنُوبَ إِلَّا أَنْتَ
Allahumma anta rabbi la ilaha illa ant, khalaqtani wa ana ’abduk, wa ana ’ala ’ahdika wa wa’dika mas-tata’t, a’udhu bika min sharri ma sana’t, abu’u laka bini’matika ’alayy, wa abu’u laka bidhanbi, faghfir li fa-innahu la yaghfirudh-dhunuba illa ant.
O Allah, You are my Lord. There is no god but You. You created me and I am Your servant. I keep Your promise as best I can. I seek Your protection from the harm of what I have done. I admit Your blessings on me, and I admit my sin, so forgive me, because no one forgives sins but You.
Sahih al-Bukhari 6306
Then, this week, make one phone call. That is how getting out starts.
Source: Quran 39:53; Quran 2:275-279; Sunan Ibn Majah 4252; Sahih al-Bukhari 6306; Standing Committee for Scholarly Research and Ifta (Saudi Arabia), via IslamQA answer 22905; General Iftaa Department of Jordan, How to Repent from a Riba-Based Loan
SM
The teaching in this post comes from the Quran and the hadith listed above. I only put it in plain words. The tips on what to do and what not to do are my own advice. If you want to talk about anything in this post, write to me at salam@sunnahdaily.com.
For a ruling on your own situation, please speak to a qualified local scholar. You are welcome to email me about it as well, and I will help if I can, or point you to someone who can.