Question :

Most of the banks propose to their clients mortgage loans with interest payments. Is it permissible for Muslims to take these loans knowing that one will be obliged to pay interest for them?

Answer :

It is not allowed to take mortgage loans with interest from private banks. It is permissible from government banks without the intention of borrowing, but the individual collects the funds on behalf of his Eminence (may Allah prolong his life) and then takes ownership of them after that. Interest is then paid just like paying taxes to the government.