Ruling of Applying for Housing Credit via Bank
There are two ways of buying goods via bank:
Firstly, a muslim goes to a bank and tell the bank, “I want to buy a certain house or car.” The bank says, “We don’t have it. Please check out if there is something that suits you, tell us, and we’ll buy it.” Then he goes to find what he wants, and when he finds it, he informs the bank of it, and the bank buys it.
After the bank buys and has it, then the bank makes a transaction with its client and there is no agreement that ties the client when the bank hasn’t buy and own the goods. For example, the client doesn’t store some down-payment, or certain amount of money which some people called “administration fee”, nor anything as a compensation of bank’s willingness to help him in realizing his wish, and it is not allowed to sign any written agreement which stated about the ability to buy the goods after the bank owns it. These are not allowed until the bank has the intended house.