I hope you are doing well.
I am having huge confusion regarding a (kind of) a mortgage plan I am involved in.
In Turkey, there is a financial institution that claims that they help people to own properties without interests. And, they have helped hundreds of people to own properties. But interestingly, they ask for a huge amount of ’service charge’. Will it be halal?
For example, I myself took a package from them. I wanted to purchase a house worth 200,000 lira. Their plan was like this:
- At first, I will pay them 2000 lira every month for two years.
So, by 24 months, I will have given them 24,000 lira.
Then, they will directly allow me to purchase a property worth 200,000 from anywhere in Turkey. They will buy it for me.
They will register the property with my name but with a condition that I cannot sell it until I payback the rest of the money (176,000 lira) to them.
Then, I keep paying them installments for years until it ends. And, I exactly pay them 176,000 lira. I don’t pay more or less.
But my concern is: they take a ’service charge’ of 15,000 lira. If I had chosen to purchase a property worth 400,000, then I should have paid them 30,000 lira as ’service charge’. The more the price of the property is, the more ’service charge’ I pay.
They named it ‘service charge’. But ultimately, they are taking extra money from me. The interesting part is: there is no fixed service charge. The more the price of the property is, the more service charge I pay.
Will it be halal to work with them/ buy property with their help?
Jazakumullah khayran for your kind cooperation. I would appreciate if you could answer with references.
May Allah bless you immensely.