Please help me understand the difference between regular and Islamic mortgage and what conditions make it “halal”. Thanks 🙂
In: Economics
its a technicality. instead of “borrowing money” to buy a house and then paying the bank back with “interest” for x years you instead make an agreement that the bank “buy” the house, then “leases” it to you for x years (afterwhich it is fully yours). The overall outcome is the same, but “Technically” no money was borrowed at interest.
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