In your question you say that the bank will buy an apartment for you. However, the bank should buy the apartment for themselves, then when they gain complete ownership of it, they can sell it to you. If they increase its price due to the repayment being made over a long period, then it is permissible for them to do that. They can increase the price of the apartment which they purchased for themselves then sell it to you, even if they purchased it for your sake, that is to sell it to you. However, they should first buy it for themselves, and you cannot be bound by anything before they own it completely and then sell it to you, even if they bought it for you, that is to sell to you. Thus, the point is that they do not sell it to you, nor make a contract with you or make anything binding upon you until they own it. When they gain ownership of it, then sell it to you for the price that both parties agree upon, and increase the price due to the length of time it is going to take you to pay off the sum, and what you mentioned about the bank charging you 930,000 Riyals, then I consider that amount to be reasonable due to the lengthy repayment period of 25 years. Even though the profit is more than half of the original amount, there is no problem with that and there is no usury or interest in that, as long as the aforementioned condition is observed, that is the bank gains ownership of the apartment then sells it to you for the price that both parties agree upon due to the length of time over which the money is repaid to the bank.
Question
The bank purchased an apartment for me, the price of which was 450,000 Riyals. I am going to pay the bank back a sum of 930,000 Riyals over a period of 25 years. This amount is taken from my wages. In the event of death, the apartment will be signed over to my inheritors. Thus, my question is, Does this type of transaction constitute usury? It is to be noted that the profit of the bank in this is over half of the price they paid for it.
Answer