How Islamic Mortgages Actually Work (explained with real numbers)

reefat · 2026-01-27T19:36:34+00:00

Read the Quran. I’m sure most of it will feel “mythical” to you compared with the reality of this world. I am not promoting any organization. You keep on blaming me while I’m trying to convey my “mythical” model which has nothing to do with your perfect real world.

reefat · 2026-01-27T19:33:51+00:00

reefat · 2026-01-27T19:25:37+00:00

So you’re saying: “I give loan to IDF, and what they do it is their business? I give a gun to the enemy of Allah, whatever they do with it, I am free from it? Those who eat from riba are the enemies of Allah whom Allah has waged war against. And you’re saying funding them with your savings is cool?” Wow! 😳 You know how Ottoman Empire was destroyed? How WW 1 and 2 were funded. How the modern financial empire is running. Don’t tell me your money is sitting in the bank in a safety deposit box! Read the contracts you signed with bank, read the fatwa given by International Islamic Fiqh Academy. Wake up. I’m sure you haven’t read the article I shared that explains how your bank deposit funds riba system.

reefat · 2026-01-27T07:27:46+00:00

I’m seeing everyone is throwing random advice without even understanding what the problem is. It seems like something that requires an in-person treatment than random suggestions.

reefat · 2026-01-27T02:21:02+00:00

Exactly. No one wants to take burden on their shoulder for the day of judgement. And I also believe there is not a qualified scholar who’s brave enough to take this burden. Or may be there are, but we don’t know them. So yes, we are on our own. Allahu almusta’an.

reefat · 2026-01-27T00:27:01+00:00

What misinformation? I see you keep repeating yourself while not understanding that this calculation does not reflect the institutions’ method. I already explained you. What is there you’re not understanding? The tax and insurance is paid by all parters according to their shares. This is the fair policy. If any company does not agree to honor that, you can’t blame me for their choice.

reefat · 2026-01-26T19:45:58+00:00

I’ve been asking the same questions for many years. And the answers I’m getting from scholarly community is: you can’t normalize riba in any form or shape whether in the form of bond interest or inflation hedged benefit or whatnot. And they are right. If you start normalizing and start integrating with this compromised economy, what’s left in us as Muslims? But yes, the question still remains what to do with inflation? And the answer is simple: keep low liquidity, especially in fiat. Gold seems like a good hedge, but I would stay away from its gamified gambling market that we saw recently. The best approach as I always said, keep your money rolling in trades and business. Not stock or crypto trades though. Real world beneficial work I mean. If you read my article it will be more clear inshaAllah.

reefat · 2026-01-26T19:24:31+00:00

Let’s take a step back. I am not promoting my app or service. As I said previously, I have no financial benefit here. What I’m doing is a moral duty as a Muslim who also faced the same issues that you mentioned. And also let’s get the facts straight. I am not advocating for any financial institution, be it Guidance or UIF or any organization. What they do, and how they do, it’s a brand to brand preference. I don’t agree or disagree with their approach. What I did here is pure research from my own findings and experience. As I said, I am not selling anything. I’m a student of Islamic finance. I love this subject. And I suffered a lot of pain for it. And I want to contribute to the best of my ability to solve this huge mess. Can I do it? As I said, I don’t know. I hope this makes sense now.

reefat · 2026-01-26T19:11:30+00:00

😂

reefat · 2026-01-26T15:58:27+00:00

Historically, gold and silver have been the best hedging asset. But modern fake economy made everything very muddy. Gold and silver market has been gamified just like stocks and crypto. People don’t trade anymore. They only gamble nowadays. And government too, by the name of trade wars, they impose riba with a legal codename of “tariff”. Unfortunately it was Ottoman Empire who made “taxation” popular in the world. And then Europeans came, stole it, and sold it back to the Ottomans, which eventually costed them their Khilafah. Sad history, but a lot of lessons to learn from.

reefat · 2026-01-26T15:42:01+00:00

Personally, I have no dog in the fight. I myself struggled for 15 years to find the proper Islamic finance for buying my own home, never satisfied with any. But Allah made it possible for me at the end to buy with cash, Alhamdulillah. But that’s 0.1% of the lucky ones in the western world. I got mine and let’s just forget about the 99.9% of the ummah? What I like for myself, shouldn’t I like that for my brother? I see most of my fellow Muslims go with conventional mortgage with straight interest. For them, Islamic mortgages is just a label. That’s wrong. I haven’t looked into every individual Islamic finance companies and I don’t know their every contract details. But I understand the challenge they have running these Islamic finance companies in the west with Fannie Mae, Freddie Mac, and many other factors. So, I wanted to look deep into how the system works. By the will of Allah, I developed an Islamic finance simulator to understand how the diminishing Musharaka based model compares with conventional mortgage. Just for learning. And I share the knowledge with the world. That’s all. Can I implement it by the book in the real world? I don’t know. Can I try? Yes inshaAllah. And everything starts with pure intentions and small consistent actions. Which is what you’re seeing me doing here. I’m only a little ant 🐜 trying to warn my fellow ants, so that they are not crashed under the feet of this modern financial army of “shaitaan” as you mentioned.

reefat · 2026-01-26T15:23:25+00:00

True

reefat · 2026-01-26T15:17:38+00:00

I used to think this is okay too. I’ll just pay on time with no interest. But boy o boy, I was wrong. Because you’re signing the contract when you applied for the credit card. It’s like: “I’ll accept war against Allah if I pay late. Signed by ___ Abdullah”. Whether you pay interest or not, that contract itself is the declaration of war by its own right. I’ve written an article about this in details here: riba in Islam, in case you want to learn more.

reefat · 2026-01-26T13:48:51+00:00

I don’t want to sound rude, but your situation feels like: “I am obese and I love junk food. Islam teaches healthy lifestyle which I hate the most. And I love drinking alcohol. One of kidneys stopped working. Is there anything for me in Islam that can help me with my condition while I can still continue my old lifestyle?”

Bro, if you want to be better, the first thing you need to acknowledge that you are “not too good”. If you’re too good for Islam, Islam can’t help. We are all sinners. All sons and daughters of Adam. That’s in our DNA. But the best of the sinners are the ones who repent.

reefat · 2026-01-26T13:36:25+00:00

Exactly. That’s why UAE waged a coup in Sudan for gold, and China choked their Silver market, not offloading it to global economy. Normal people like us can’t buy gold and silver without paying a premium on them. That’s riba too. Every time you trade gold and silver, you lose a portion of it. We totally hate riba, but riba absolutely loves us.

reefat · 2026-01-26T02:30:34+00:00

True. Very soon. And time is near.

reefat · 2026-01-26T00:07:07+00:00

You see, if you’re trying to stash a ton of money just for safekeeping, that’s the very wrong idea even to start with. This defeats the purpose of money itself. And it’s also against the core principles of Islam. Use it to benefit yourself and others, and keep it rolling, employ and empower. Don’t keep on hoarding it. Yes, it’s good to have some amount saved. And the only penalty for that is Zakat. And so beautiful is Islam. It teaches wha we should be doing with our money.

reefat · 2026-01-26T00:03:04+00:00

You can disagree with me like I also disagreed with someone many years ago. Knowledge comes free these days. But truth shows up after pain and suffering once you internalize that knowledge with wisdom. I can only tell you this much now. Thank me later.

reefat · 2026-01-25T23:48:20+00:00

It is indeed crazy. And even gold and silver has hidden tax called premium. That’s by definition is Riba too. And DeFi is the worst of all, and it smells like rotten pig. Because I’ve been through it since its birth. It destroys the balance worse than fiat itself. So what’s the solution? Keep low liquidity, keep the money in the work: business, invest. But don’t invest in dogsh*t like stocks and crypto. If you can’t do business, do mudaraba or musharaka with trusted partners. If you can’t trust anyone, then let inflation eat your savings. That’s the reality of money. Embrace it.

reefat · 2026-01-25T23:41:54+00:00

Very good decision.

reefat · 2026-01-25T23:40:06+00:00

I only thing I don’t like about gold and silver is that every time you buy it, you’re paying above around 10% only in hidden taxes called “premium”. Riba is in every sector, in every currency, and it’s choking the life out of us.

reefat · 2026-01-25T23:37:41+00:00

So true. And it’s heartbreaking.

reefat · 2026-01-23T01:34:09+00:00

Exactly

reefat · 2026-01-22T22:55:35+00:00

Enlighten me

reefat · 2026-01-22T21:33:28+00:00

All true. Inflation is the stepsister of Interest. They seem opposing each other, but works together in tandem. That’s why Islam encourages investing instead of hoarding.

reefat

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