Mortgage – taking out a home loan

Mortgage – taking out a home loanCategory: ReligionMortgage – taking out a home loan
Hassan Aboumaray asked 8 years ago

Dear Brother, 
I’m writing this email as I’m confused to whether taking out a home loan mortgage is permissible or not? I’ve read in the Quran that “riba” is haram, however there are plenty of Muslim families that are taking out home loans as they feel its too expensive to rent (the case in New Zealand – renting a property in Auckland can be 1000+ a week) – so basically, I’m confused, I don’t understand why Muslims are so divided with this topic when it clearly states in the Quran that it is not permissible and the punishment is severe? 

Hope to hear from you soon inshallah.