Can I Get a Second Mortgage To Pay My First One Off Faster?

Answered by Shaykh Abdul-Rahim Reasat

Question

I bought a house with a mortgage and have the option of refinancing it. I would pay 1.2% interest for this money.
Would I be permitted to take this money to generate more money from halal investments to pay my house off sooner?

Answer

I pray you are well.

No, taking out the second mortgage is not permissible. The Messenger of Allah (Allah bless him and give him peace) said, “Allah has cursed the giver taker of interest, the one who gives it, the witnesses of the contract and the one who documents it.“ [Muslim]

Dealing with interest is a problem, one which you should repent from. It’s something serious. A curse entails being distanced from Allah’s mercy, and we are in dire need of His mercy all the time.

Repentance also entails stopping. I can see that you wish to try to get out of the mortgage sooner, which is a good idea, but doing it through a second sinful contract is not the way forward. It may make sense on paper, but it won’t make sense on the Day of Judgement.

Ask Allah for an alternative, halal means of getting out of the situation. May Allah grant you a way out soon.
[Shaykh] Abdul-Rahim
Checked and Approved by Shaykh Faraz Rabbani 

Shaykh Abdul-Rahim Reasat began his studies in Arabic Grammar and Morphology in 2005. After graduating with a degree in English and History, he moved to Damascus in 2007, where, for 18 months, he studied with many erudite scholars. In late 2008 he moved to Amman, Jordan, where he continued his studies for the next six years in Sacred Law (fiqh), legal theory (Usul al-fiqh), theology, hadith methodology, hadith commentary, and Logic. He was also given licenses of mastery in the science of Quranic recital. He was able to study an extensive curriculum of Quranic sciences, tafsir, Arabic grammar, and Arabic eloquence.