Question:

The prices of houses in Canada are so high that it is difficult to pay for them all at once. Therefore, a person is forced to take a loan for purchasing a house. This debt is paid off in installments in 25 to 30 years. In the above-mentioned case where the monthly instalments of the debt on the house are being paid, yet the person has 5 or 10 thousand dollars saved, will zakah be fardh on him?

Answer:

A person should pay zakah on this [saved] money as the debt of the house is deferred [or long-term]. And according to the most authentic view, the deferred/long-term debt does not prevent the obligation (wujub) of zakah.

وعن أبي حنيفة لا يمنع. وقال الصدر الشهيد: لا رواية فيه، ولكل من المنع وعدمه وجه. زاد القهستاني عن الجواهر: والصحيح أنه غير مانع (شامي ج:2 ص:5)

And Allah Subhanahu knows best

(Hazrat Mufti) Muhammad Taqi Usmani (Sahib May Allah preserve him)

Fatawa Usmani Vol.2 Pg.70-71