Islamic Finance for Buying a House

Q: I wish to buy a house. Are the Islamic finances advertised by banks permissible?

A: Islamic finance for housing is offered by First Rand (FNB), Absa, and Al-Barakah (in South Africa). (There may be a few more on the market). Purchasing your house through one of these banks is far better than taking out a bond on which one would pay tremendous interest. However, when entering into a contract with the bank, please check the paper work or have an alim check it for any discrepancies as far as Shariah is concerned.You are welcome to come back to us on this issue.