Musharaka varying based on interest rate

Everyday Islamic Finance Business and Career Questions
#1

Assalamu Alaikum,

In a musharaka mortgage, is it allowed to tie the profit rate to the interest rate, such that if the interest rate changes so will the rent/profit amount due?

JazakAllah

#2

Wasalam

May Allah bless you.
Yes its permissible. The benchmark is used by Islamic banks only to determine a percentage. It does not mean you are paying/receiving interest.

And Allah knows best!