Are Islamic home purchase plans halal?
Halal. Plans built on ijara (lease), diminishing musharaka (co-ownership) or murabaha (cost-plus sale) and approved by a Shariah board are accepted by AAOIFI and most scholars.
Worth knowing
- Some critics object that the rent or profit is priced against interest rates. AAOIFI accepts using interest rates as a pricing benchmark.
Quick answers
- Are Islamic home purchase plans halal?
- Halal. Plans built on ijara (lease), diminishing musharaka (co-ownership) or murabaha (cost-plus sale) and approved by a Shariah board are accepted by AAOIFI and most scholars.
Sources
- Halal or Not? rulebook topic “Islamic home purchase plans”, live answer (checked 28 September 2026)
Information, not a fatwa. Where scholars differ, this shows the main views so you can follow the one you already follow or ask a scholar you trust.
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More on money and investing
- Is interest on a savings account halal? Haram
- Is a current account at an ordinary bank halal? Halal
- Are credit cards halal? Scholars differ
- Is buy now pay later (Klarna, Clearpay) halal? Depends
- Is a conventional mortgage halal? Scholars differ
- Are UK student loans halal? Scholars differ
- Are Premium Bonds halal? Scholars differ
- Is conventional insurance halal? Scholars differ
- Is takaful halal? Halal
- Are pensions halal? Depends