Fatwa #4775018 May 2021United States of America
Zakat on mortgage through Shariah financing
Question
Assalaam Alaikum
I have a question related to Zakaat
I purched a house on morgage. Alhamdulillah it is not a conventional mortgage. I got mortgage through Shariah financing.
When I was caculating my my zakaat, I know that I have to deduct the debt amount. But if I deduct the debt amount of my mortgage I become inillegible to pay zakaat. Which is little confusing to me because why one should seduct the whole debt which he/she will pay in 30 years.
I am not sure but logically one should only deduct the amount he/she indebted for 1 year becasue we calculate the zakaat of 1 year. (Allah know better).
But on second thought How can I deduct one year debt (and its not debt anymore becasue I have already paid it every month).
Please hel me fnding the answer and justly calclating the zakaat.
Jazaak Allah
Answer
In the Name of Allah, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.
Respected Brother in Islam,
Islamic Banks/Financial Services Companies use different modes for property finance. In order for us to issue a ruling, clarify the following:
1. Is the Shariah Financing on Musharakah basis or Murabahah basis or Ijarah Muntahi-a-bil-tamleek basis?
2. How the process works?
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And Allah Ta’āla Knows Best
Checked and Approved by,
Mufti Ebrahim Desai.