Zakah on RRSP (Registered Retirement Savings Plan) Q1: Do I have to pay zakah on my RRSP or other savings plans like educational savings?A1: Yes, you have to pay zakah if: Q2: But what if I can only access my RRSP funds after many years (like 20–25 years)?A2: If you don’t have full access, zakah … Read more
Zakah on RRSP & Registered Educational Plans Q: Do we have to pay zakah on a registered educational plan or RRSP? A: Yes, zakah is due if the amount reaches the nisab (around $11,000 CAD) and has been held for a full year, as long as you have access to it. Q: What if I … Read more
MORTGAGE & HOMEOWNERSHIP 15. Q: What is the general Islamic ruling on riba-based mortgages? A: The general ruling is that riba is haram. Taking a conventional mortgage involving interest is not permitted. 16. Q: Can someone take a riba-based mortgage due to housing difficulties? A: Only in extreme necessity (darurah)—such as when a person with many dependents cannot find … Read more
CAR LOANS & PERSONAL FINANCING 24. Q: Is it permissible to take a riba-based loan to buy a car? A: No. Car loans that involve interest are not permissible if halal alternatives exist (e.g., in-house financing). 25. Q: What if luxury car brands don’t offer halal options (e.g., Mercedes)? A: That does not justify taking riba. One should choose a more affordable vehicle … Read more
1. Q: Can a student take a loan just to access attached grants, if they already have enough money? A: Yes, if the loan is interest-free for a set period (e.g., six months) and the borrower: Then this is permissible, based on the principle: “Al-umūr bimaqāsidihā” – Actions are judged by intentions. 2. Q: Are student loans that include interest (riba) … Read more
Q&A Collection: Student Loans, Riba, Mortgages & Halal Finance Dr. Mahmoud Omar Organized by Topic for Clarity STUDENT LOANS & FINANCIAL AID 1. Q: Can a student take a loan just to access attached grants, if they already have enough money? A: Yes, if the loan is interest-free for a set period (e.g., six months) … Read more
Q: If a child pays off their parents’ debts, such as mortgages and car loans, does that make them the owner of those assets? A: It depends on the intention. If the money was given as a gift (hibah) with no expectation of return or ownership, then the asset remains the parents’ property. But if … Read more
1. Q: What is the Islamic concept of hibah (gifting), and how should it be practiced? A: Hibah is giving something to someone without expecting anything in return. It is done sincerely for the sake of Allah. If a person gives a house, money, or furniture and intends no repayment, then it’s a valid hibah. … Read more