الْمُعَامَلَاتُ الْمَالِيَّةُ فِي الْحَيَاةِ الْيَوْمِيَّةِ

Before starting This lesson gives no fatwa. It presents the most frequent financial questions in Canada, the main positions of contemporary scholars, and the questions to ask. For your case, the reference is the centre's imam, who knows your situation, and the recognised bodies [À VÉRIFIER : l'ensemble de la leçon, pour l'imam].

The bodies often cited • The International Islamic Fiqh Academy (Majma' al-Fiqh al-Islaami ad-Duwali), an organ of the Organisation of Islamic Cooperation, in Jeddah. • AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions), which publishes compliance standards for Islamic finance. • The European Council for Fatwa and Research (ECFR), which deals with the questions of Muslims living in the West. • The Assembly of Muslim Jurists of America (AMJA) and the Fiqh Council of North America (FCNA), for North America. These bodies do not always agree with each other; one more reason to ask the imam.

Buying a home • A conventional mortgage involves interest. The great majority of scholars consider it riba. • In 1999, the European Council for Fatwa permitted, under conditions, a conventional mortgage for a first residence for Muslims living in Europe, for lack of an alternative, relying on necessity and on a Hanafi position; other bodies (including AMJA and many scholars) rejected this position [À VÉRIFIER : présentation exacte et date]. • Alternatives exist in Canada: Islamic financing cooperatives and companies offering muraabaḥa (purchase then resale with a known margin), ijaara (lease with transfer of ownership) or diminishing mushaaraka (co-ownership in which the buyer's share increases). Scholars discuss how compliant each product is; one must check who certified the product and how it is structured [À VÉRIFIER]. • Questions to prepare: is it a first residence? which alternatives were considered? what is the exact structure of the contract?

The credit card • Using a credit card and paying the full balance on each due date: most contemporary scholars permit it, since no interest is paid; some discuss the contract clause that provides for interest in case of late payment [À VÉRIFIER]. • Carrying a balance and paying interest: this is paying riba. If you are already in this situation, the priority is to repay as quickly as possible, starting with the debts at the highest rate. • Rewards (points, cash back) offered by the issuer: many consider them permissible when the balance is paid in full [À VÉRIFIER]. • A cash advance (withdrawing money with the card) incurs immediate interest: to be avoided.

The car Interest-bearing car loan, lease, or cash purchase: scholars distinguish leasing (a lease contract may be permissible) from an interest-bearing loan (riba). Some dealers offer "0%" financing: one must check that there really is no interest nor late penalty acting as interest [À VÉRIFIER].

Studies Government student loans raise the question of interest. According to public information, the federal government removed interest on the federal portion of Canada Student Loans from 2023, but the provincial portion may still carry interest depending on the province [À VÉRIFIER : situation à jour et province]. Bursaries and grants do not raise this question. For an interest-bearing loan, the question of necessity is one to put to the imam.

Insurance • Conventional insurance is discussed: many consider it problematic (uncertainty, interest in the insurer's investments) and prefer mutual or cooperative insurance (takaaful) where it exists; others permit it out of need. • Insurance required by law (basic car insurance, provincial health insurance) is generally accepted out of necessity or legal obligation [À VÉRIFIER]. • Life insurance is the subject of differing positions [À VÉRIFIER].

Investing, including in an RRSP or TFSA • Investing in shares is permitted in principle: it is participation in a company. The company's activity must be lawful and its debts and interest income must stay below thresholds set by the standards (often about one third for debts, with a "purification" of forbidden income) [À VÉRIFIER : seuils AAOIFI]. • Funds and ETFs screened according to these standards exist in Canada; they can be held in a TFSA or an RRSP. • Conventional bonds and GICs (guaranteed investment certificates) pay interest: they are not compatible according to the majority position; ṣukuuk are presented as an alternative [À VÉRIFIER]. • Highly leveraged "day trading", options and futures are discussed and often discouraged, as they come close to gambling [À VÉRIFIER].

Buy now, pay later "Buy now, pay later" plans with no interest and no late fees resemble a credit sale, generally permitted; if interest or late fees apply, the question of riba arises [À VÉRIFIER]. They often push people to buy more than they can afford: caution.

A line of conduct for all cases • Start by asking whether the expense is necessary. • Look first for the interest-free option (savings, cash purchase, certified Islamic product, interest-free family help). • Read the contract; spot interest and late fees. • Ask the imam, with the documents in hand. • Make a budget: spend less than you earn, save a little every month, keep an emergency fund. "Those who, when they spend, are neither wasteful nor stingy, but hold a just balance between the two" (25:67).

The text: Surah Aṭ-Ṭalaaq (65), verses 2 to 3 فَإِذَا بَلَغْنَ أَجَلَهُنَّ فَأَمْسِكُوهُنَّ بِمَعْرُوفٍ أَوْ فَارِقُوهُنَّ بِمَعْرُوفٍ وَأَشْهِدُوا ذَوَيْ عَدْلٍ مِنْكُمْ وَأَقِيمُوا الشَّهَادَةَ لِلَّهِ ۚ ذَٰلِكُمْ يُوعَظُ بِهِ مَنْ كَانَ يُؤْمِنُ بِاللَّهِ وَالْيَوْمِ الْآخِرِ ۚ وَمَنْ يَتَّقِ اللَّهَ يَجْعَلْ لَهُ مَخْرَجًا ﴿٢﴾ وَيَرْزُقْهُ مِنْ حَيْثُ لَا يَحْتَسِبُ ۚ وَمَنْ يَتَوَكَّلْ عَلَى اللَّهِ فَهُوَ حَسْبُهُ ۚ إِنَّ اللَّهَ بَالِغُ أَمْرِهِ ۚ قَدْ جَعَلَ اللَّهُ لِكُلِّ شَيْءٍ قَدْرًا ﴿٣﴾

Meaning: "When they reach their term, retain them honourably or part from them honourably, and take two just witnesses from among you, and bear witness for Allah. This is what is urged upon whoever believes in Allah and the Last Day. And whoever is mindful of Allah, He makes a way out for him, and provides for him from where he does not expect. And whoever puts his trust in Allah, He suffices him. Allah accomplishes what He wills, and He has set a measure for everything." The beginning of the verses deals with divorce; their end, "whoever is mindful of Allah, He makes a way out for him and provides for him from where he does not expect", is often cited as a general rule, in particular for one who gives up a doubtful gain out of mindfulness of Allah.

Arabic text: Tanzil Quran Text (Simple, version 1.0.2), © 2008-2010 Tanzil.net, Creative Commons Attribution 3.0 licence, reproduced without any change (http://tanzil.net). Each verse is on its own line, followed by its number; the basmala, which the Tanzil file places at the start of the first verse, is written on its own line.

Understanding the lesson

Explanation Living in Canada means living in a financial system built around interest. The Muslim is not called to isolate himself from it, but to move within it with principles: distinguishing what is clearly permitted (paying one's card in full, investing in a screened fund), what is clearly forbidden (paying or receiving interest by choice), and what is discussed (mortgage out of necessity, insurance, certain products). For discussed questions, the method matters more than the answer: knowing the positions, preparing one's file, asking a trusted scholar, then acting with serenity. The believer does not make his own fatwa by choosing the position that suits him, and he does not condemn his brother who follows another recognised position. Verse 65:2-3 gives confidence: whoever gives up a doubtful gain for Allah does not lose; Allah opens for him a way out and a provision he did not expect.

Review of the course • Unit 1: zakaat is a right of the poor in your wealth; it is due beyond the nisab (85 g of gold or 595 g of silver), after a lunar year, at 2.5%. • Unit 2: it covers money, savings, investments, merchandise, gold and silver, crops and herds; Canadian accounts are treated by analogy; the calculation is done in seven steps. • Unit 3: it goes to the eight categories of 9:60; zakaat al-fiṭr purifies the fast; ṣadaqa and waqf extend generosity, and the will organises it. • Unit 4: clean money requires lawful earning, no riba, clear contracts and honoured debts.

Lessons to draw from it • List your financial products (accounts, cards, loans, insurance, investments) and identify those that involve interest. • Draw up a plan to gradually get out of interest-bearing debts. • Before any major commitment (home, car, studies), ask the imam with the contract in hand. • Choose screened investments for your TFSA and RRSP. • Make a family budget and keep an emergency fund.

Key points to remember • Bodies: International Islamic Fiqh Academy, AAOIFI, ECFR, AMJA, FCNA. • Credit card paid in full: permitted according to most; balance with interest: riba. • Conventional mortgage: riba according to the majority; ECFR necessity position (1999), contested [À VÉRIFIER]. • Investments: shares of lawful, screened companies; no interest-bearing bonds or GICs (majority). • "Whoever is mindful of Allah, He makes a way out for him" (65:2).

The main message In a financial world founded on interest, move forward with clear principles and the advice of a trusted scholar: lawful money, purified by zakaat and shared through charity, is a source of peace and baraka.