Fatwaa ID: 1689
Assalamu alaykum mufti sb. Is loan taken for halal islamic financing of a house subtracted from zakatable assets for calculating zakat?
In the Name of Allaah, the Most Gracious, the Most Merciful.
As-salaamu ‘alaykum wa-rahmatullaahi wa-barakaatuh.
While Islamic financing is an alternative to conventional mortgage, it is not a loan. In most cases of home financing, it is a partnership (musharakah) and thus not eligible for zakaah deduction. You may revert to us with the model used for financing in your case, if other, and we will advise accordingly.
And Allaah Ta’aala knows best.
Mufti Muajul I. Chowdhury
Darul Iftaa New York
02/11/1445 AH – 08/28/2023 CE | AML1-8238
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