Is a TFSA (Tax-Free Savings Account) Permissible in Islam? QuestionIs a TFSA account haram? I read that it helps you avoid paying taxes on your savings, but since the bank invests that money and adds interest to it, is it still permissible to use? AnswerAlhamdulillah, wassalatu wassalamu ala rasulillah, wa ala alihi wa sahbihi ajma‘in. … Read more
Is It Permissible to Take a Conventional Mortgage in Cases of Severe Hardship? Questionبسم الله الرحمن الرحيمAs-salamu alaykum wa rahmatullahi wa barakatuh, I have always tried to avoid interest and refused to apply for a conventional mortgage, as riba is prohibited in Islam. I applied for an Islamic mortgage, but I was only approved for … Read more
Car Financing Through Toyota: Bank vs. In-House QuestionAssalamu Alaikum wa Rahmatullahi wa Barakatuh,I recently went to Toyota to finance a car. They told me they will give me the car through financing, and the monthly payments include interest. They said the price of the car will not change, but there will be interest added. My … Read more
Professional Liability Insurance for Dietitians in Canada QuestionAssalam alaikum wa rahmatullahi wa barakatuh! I was wondering if you are familiar with services that provide professional liability insurance for dietitians in Canada that aligns with Islamic principles (takaful). In order to have and to maintain the permit of dietitians, it entails the following rules: College of … Read more
QuestionIs Servus Halal, which has started launching in Alberta, a Murabaha or Musharakah product? What are the terms? AnswerAlhamdulillah, wassalatu wassalamu ala rasulillah, wa ala alihi wa sahbihi ajmain. What Servus Halal Is Key Terms of Servus Halal Mortgage Product Compliance with AAOIFI Standards Servus Halal has been structured in compliance with the standards of … Read more
QuestionWhat is the ruling on investing in stocks? AnswerAlhamdulillah, wassalatu wassalamu ala rasulillah, wa ala alihi wa sahbihi ajmain. The General Principle The usul principle is: “Al-asl fi al-mu‘amalat al-ibahah” the default ruling in financial transactions is permissibility, unless there is clear evidence of prohibition. Therefore, investing in stocks is permissible in principle, provided the … Read more
QuestionAs-salamu alaykum wa rahmatullahi wa barakatuh. I have a question about tenant’s (renter’s) insurance. If a landlord requires tenant’s insurance as a condition for renting an apartment, are we allowed to purchase it? And is tenant’s insurance considered a necessity for living in a rental property in Edmonton? Jazakumullahu khayran. AnswerAlhamdulillah, wassalatu wassalamu ala rasulillah, … Read more
QuestionSalam, I was told it was required to get the lowest coverage insurance for my vehicle in Canada because insurance is haram. When leasing or financing a vehicle it is required to obtain full coverage insurance by the company leasing or financing the car to you. Question #1 – Is obtaining full coverage insurance for … Read more
QuestionSalam, I would like to know if working as a salesman at a car dealership is haram? Please let me know. Jazakallahu khayran. AnswerAlhamdulillah, wassalatu wassalamu ‘ala rasoolillah, wa ‘ala alihi wa sahbihi ajma‘in. The ruling depends on the type of sales and financing that the dealership uses. Islamic jurisprudence distinguishes between permissible trade and … Read more
QuestionCan interest earned be used to pay off debt? AnswerAlhamdulillah, wassalatu wassalamu ‘ala rasoolillah, wa ‘ala alihi wa sahbihi ajma‘in. Earning interest (riba) is haram, and a Muslim should avoid placing his wealth where it accrues interest whenever possible. The Prophet ﷺ cursed the one who consumes riba, the one who pays it, the one … Read more
Question I am seeking a religious ruling on using a line of credit for educationI am a dentist living in Canada and I wish to start the Canadian dental equivalency process. In order to register for my first exam and the preparation course, I need a significant amount of money.I previously worked as a dental … Read more
QuestionWhat is the ruling on purchasing full (comprehensive) insurance in Islam? AnswerAlhamdulillah, wassalatu wassalamu ‘ala rasoolillah, wa ‘ala alihi wa sahbihi ajma‘in. Insurance is a modern financial product that did not exist in classical fiqh, so the scholars have had to analyze it according to the principles of Shariah. Full or “comprehensive” insurance covers not … Read more
Question:What is the ruling on working in the Human Resources (HR) department of a conventional bank? Answer: Alhamdulillah, wassalatu wassalamu ‘ala rasulillah, Riba (usury/interest) is categorically forbidden in Islam, by Qur’an, Sunnah, and ijma‘. The Prophet ﷺ cursed the one who consumes riba, the one who pays it, the one who records it, and those … Read more
QuestionI lent someone some money. I paid $1000 Canadian Dollars through an app, and he received about 190,000 Pakistani Rupees. Now, he wants to pay me back and I’m in Pakistan, so he will pay me in Rupees. But the value in Rupees changed, and now it’s around 205,000 Rupees to $1000. My question is: … Read more
The rulings of day trading, short selling, options and gold trading. Praise be to Allah. 1. Day Trading (Cash Equities) 2. Day Trading with Margin 3. Short Selling 4. Options 5. Gold Trading Forms in the West: And Allah knows best.
Bismillah Ar -Rahman Ar-Raheem, Question:Can crowdfunding for a halal startup or business idea be considered acceptable under Islamic investment rules? Answer:Crowdfunding refers to raising small amounts of capital from a large number of people, typically via an online platform, to fund a project, startup, or business. The concept itself is not inherently prohibited in Islam … Read more
The Prophet ﷺ said regarding partnerships: “The hand of Allah is with the two partners as long as they do not betray each other.”(Narrated by Abu Dawud, 3383; classed as hasan) Musharakah: Islamic Partnership Contracts and Their Modern Applications Definition:Mushārakah (مشـاركة) is an Islamic partnership contract in which two or more parties contribute capital to … Read more
Question:Is using buy-now-pay-later (BNPL) services Islamically permissible if paid off within the grace period? Answer: 1. What are BNPL (Buy-Now-Pay-Later) Services? BNPL services allow customers to purchase goods immediately while delaying full payment. Typically, they offer: 2. Scholarly Consensus (Ijma‘) and Established Opinions Contemporary Islamic jurisprudential bodies, including AAOIFI and the International Islamic Fiqh Academy, … Read more
Question:Is reverse mortgage (home equity release) permitted for Muslim homeowners to fund retirement needs? Answer: 1. Understanding Reverse Mortgage (Home Equity Release) A reverse mortgage allows elderly homeowners to borrow money against the equity in their home. Repayment usually occurs upon the homeowner’s death, sale of the property, or permanent relocation. The loan typically accumulates … Read more
Question:Is it halal to lease a car if the owner is not financing it? Since I’m not owning the vehicle and I don’t plan to buy it at the end, can I consider it as renting a car? Is it permissible to have full insurance coverage for the leased car? And who is supposed to … Read more
Question:Can Muslims invest in ESG funds if they include companies with minor interest-based income? Answer: 1. Definition and Nature of ESG Funds What are ESG Funds? ESG funds are investment funds prioritizing companies that meet specific criteria related to: However, these ESG funds may include companies that, although primarily ethical in business practices, generate a … Read more
1. Understanding Digital Assets in Islamic Terms Before calculating Zakah, it’s essential to classify digital assets according to traditional Islamic jurisprudential categories. Contemporary scholars generally categorize digital assets as follows: Zakah calculation differs based on these categories. 2. Conditions for Zakh Obligation Zakah is obligatory when these general conditions are met: 3. Calculating Zakah by … Read more
Question:If someone lends money in Lebanese lira, and at the time of the loan it was worth a certain amount in US dollars, but the currency later collapses — can the lender request repayment in Lebanese lira equal to the original dollar value? Answer:Bismillahir Rahmanir Rahim In cases of economic collapse or severe devaluation, Islamic … Read more
Question: Are cashback and rewards from credit cards considered ribā (interest)? Answer: بِسْمِ اللَّهِ الرَّحْمَنِ الرَّحِيمِ، الْـحَمْدُ لِلَّهِ رَبِّ الْعَالَمِينَ، وَالصَّلَاةُ وَالسَّلَامُ عَلَى أَشْرَفِ الْأَنْبِيَاءِ وَالْمُرْسَلِينَ، نَبِيِّنَا مُحَمَّدٍ، وَعَلَى آلِهِ وَصَحْبِهِ أَجْمَعِينَ، وَمَنْ تَبِعَهُمْ بِإِحْسَانٍ إِلَى يَوْمِ الدِّينِ. Conventional credit card agreements usually include a clause allowing the issuer to charge interest (ribā) on late … Read more
Question: Can a Muslim invest in conventional stock markets or ETFs? Answer: بِسْمِ اللَّهِ الرَّحْمَنِ الرَّحِيمِ، الْـحَمْدُ لِلَّهِ رَبِّ الْعَالَمِينَ، وَالصَّلَاةُ وَالسَّلَامُ عَلَى أَشْرَفِ الْأَنْبِيَاءِ وَالْمُرْسَلِينَ، نَبِيِّنَا مُحَمَّدٍ، وَعَلَى آلِهِ وَصَحْبِهِ أَجْمَعِينَ، وَمَنْ تَبِعَهُمْ بِإِحْسَانٍ إِلَى يَوْمِ الدِّينِ. Investment and business ownership are generally permissible in Islam, provided they are free from prohibited elements such … Read more
Question: What is the ruling on cryptocurrencies in Islamic finance? Answer: بِسْمِ اللَّهِ الرَّحْمَنِ الرَّحِيمِ، الْـحَمْدُ لِلَّهِ رَبِّ الْعَالَمِينَ، وَالصَّلَاةُ وَالسَّلَامُ عَلَى أَشْرَفِ الْأَنْبِيَاءِ وَالْمُرْسَلِينَ، نَبِيِّنَا مُحَمَّدٍ، وَعَلَى آلِهِ وَصَحْبِهِ أَجْمَعِينَ، وَمَنْ تَبِعَهُمْ بِإِحْسَانٍ إِلَى يَوْمِ الدِّينِ. Cryptocurrencies are a modern financial phenomenon not explicitly addressed in classical fiqh texts. However, their permissibility is assessed … Read more
QuestionDoes in-house financing for vehicles always comply with Shariah? Or are there any specific requirements we should follow? Answer: Praise be to Allah. Firstly: The principle of financing in Islam Financing in Islam must comply with the principles of Shariah, which forbid riba (interest) and emphasize valid contracts, clear terms, and ownership of goods before … Read more