A mortgage system is a system that allows for the purchase of real estate through financing from mortgage institutions, with the loan repaid through monthly installments paid over relatively long periods until the principal amount and the interest (mubaraka) due on it are covered.

Important Points Regarding Mortgages

• The market value of the property in question must cover the full loan amount and even exceed it to account for any risks related to a decline in its value.
• The property must actually exist in reality and not merely on paper or in blueprints; an impartial and specialized appraisal by accredited sources will be necessary to determine the property’s fair market value. and the mortgaged property will include all related services and structures, such as the garden, outbuildings, and others.
• Mortgage financing may take the form of financing for additional construction or for finishing work on the mortgaged property.
• The mortgagor has the right to use the property in a normal manner, provided that no harm or physical damage is caused to it that could reduce its value. and in the event of a decrease in the property’s value or damage to it, the mortgagor is obligated to provide additional security to compensate for this loss if he is at fault.
• The mortgagor has the right to benefit from the income generated by the property, such as rent, and any increase in the property’s value shall accrue to him. The mortgagor may repay his obligations to the mortgagee prior to the maturity date, in accordance with their agreement.
• The status of the mortgaged property is determined by one of two outcomes: it is either in the hands of the mortgagor or the mortgagee. If the mortgagor fulfills their obligations, they are entitled to own the property; however, if they default on payment, the authorities intervene to forcibly evict the mortgagor and dispose of the property to satisfy the mortgagee’s claims, and any remaining proceeds thereafter belong to the mortgagor.
• Among the mortgagee’s rights is the authority to halt any actions that could cause the property to be destroyed or damaged. The mortgagee may also take all possible measures to prevent such harm, and the mortgagee may transfer their right to collect the debt to another party unless otherwise agreed.
• The property shall remain mortgaged in favor of the mortgagee (lender) until the mortgagor (borrower) has fulfilled all their obligations.
• The mortgagee has priority over all other creditors in collecting the debt from the mortgaged property.
• The mortgage is not invalidated by the death of the mortgagor or the mortgagee or by loss of legal capacity; the heirs have the right to fulfill the terms and conditions of the mortgage.