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Halal Mortgage Australia
FAQs

Frequently Asked
Questions

Everything you need to know about Halal mortgages, Ijarah finance, the application process, and how Sharia-compliant home ownership works in Australia.

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Eligibility & Getting Started

Who can apply for Halal finance?
Anyone residing in Australia, whether an individual or a business, can apply for Halal Mortgages, Islamic Finance, Sharia Mortgages, and Islamic Car Finance. Our products are designed to serve anyone seeking faith-aligned financial solutions.
Is there a waiting list?
No, there is typically no waiting list. Applications are processed efficiently, though high demand periods may cause slight delays. You can start your application immediately by contacting us.
How much deposit do I need?
Approximately 20% of the property purchase price is required, ensuring both parties share the risk equitably. Contact us for a personalised assessment based on your situation.
If I have a bad credit history, can I apply?
Yes, you can still apply. We assess applications on a case-by-case basis, considering your current financial situation rather than relying solely on credit history.
What documentation will I need to provide?
You will typically need proof of income (recent payslips, tax returns), identification (passport, driver licence), property details, and any documents relevant to the specific financing type. We guide you through the full checklist when you apply.

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Understanding Ijarah Finance

What method of Ijarah underlies this contract?
The method used is Ijarah Muntahiya Bil Tamleek, where the property is leased to you with the eventual transfer of ownership at the end of the lease term.
Is Ijarah Muntahiya Bil Tamleek compliant with Sharia?
Yes, Ijarah Muntahiya Bil Tamleek is widely accepted and used in Islamic finance globally. It fully complies with Islamic law and avoids riba (interest) at every stage.
How many agreements do I sign when taking up finance for a property?
You sign two agreements: a lease agreement (Ijarah) and a promise to transfer ownership at the end of the lease term. Both are structured to comply with Sharia principles.
Is the Ijarah contract certified by a Sharia board?
Yes, all Ijarah contracts are certified by a qualified Sharia board to ensure full compliance with Islamic principles.
Why has Ijarah Finance used a Singaporean board to certify their property contracts as Sharia compliant?
A Singaporean Sharia board provides external, unbiased certification due to their recognised expertise in Islamic finance. This independent oversight adds an additional layer of credibility and assurance.
What is the difference between rental-based finance and interest-based finance?
Rental-based finance (such as Ijarah) uses rent payments with eventual ownership transfer to you — no interest is charged at any point. Interest-based finance, by contrast, includes riba (interest) charges that are prohibited under Islamic law.

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Payments & Financial Terms

When do the monthly payment instalments begin?
Instalments begin after the lease agreement is signed and the property or asset is handed over to you.
Can I make extra voluntary repayments?
Yes, extra voluntary payments are permitted and can help you reduce your overall financial commitment and shorten the lease term.
Is there a penalty for late repayments or defaulting the contract?
Any penalties are handled in a way that complies with Sharia principles and are non-interest-based. We encourage you to contact us early if you anticipate difficulty making a payment so we can discuss your options.
Is the rental rate a fixed or variable type contract?
Rates can be either fixed or variable, depending on the product you choose. Both options are structured to comply with Sharia principles. We explain the differences clearly so you can choose what suits you best.
What is an index percentage (%) in calculation?
An index percentage is a benchmark used to calculate the profit or rental rates in your agreement. It ensures fair, market-related rates while remaining within the bounds of Sharia compliance.
If no interest is being charged, how does the financial institution profit?
The financial institution earns profit through rental payments or profit-sharing arrangements rather than interest. This is the fundamental difference between Islamic and conventional finance.

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Property & Ownership

What happens when I have made the final payment?
Ownership of the property is transferred to you in full, completing the Ijarah agreement. The home is yours, free and clear.
Will the property be registered in my name?
Yes, the property is registered in your name once the final payment is made and ownership is formally transferred.
Can I sell the property before the finance period has ended?
Yes, you can sell the property before the end of the finance period, though any outstanding balance will need to be settled as per the agreement terms.
If I fall under hardship or my circumstances change, can I sell the property?
Yes, the property can be sold if your circumstances change. The proceeds are handled in accordance with Sharia principles, and we work with you to find the best solution.
Can I rent out the property?
Yes, though this must be disclosed and agreed upon in the initial agreement. Contact us to discuss the arrangements.
Who is responsible for the maintenance of the property?
The lessee (you) typically handles routine day-to-day maintenance. The lessor may cover significant repairs and structural issues, depending on the terms of your agreement.
Do you take a share of the profit or loss from the sale of the property?
In profit-sharing models such as Musharaka, the financier may participate in profits or losses, ensuring the risk is shared equitably between both parties. The specific terms are agreed upfront.

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About Our Business & Funders

How do you make money as a business?
Our revenue comes from profit-sharing and rental agreements rather than charging interest. This ensures our business model is fully aligned with Sharia principles.
Who are your funders?
Our funders include Sharia-compliant financial institutions and ethical investors who are committed to Islamic finance principles.
Does Ijarah Finance pay interest to its funders?
No, all financing agreements are structured to comply with Sharia principles, avoiding riba (interest) completely — including arrangements with our funders.
Does the funder need to be Sharia compliant?
Yes, to ensure full Sharia compliance throughout the process, our funders must adhere to Islamic finance principles.
Can funders change their rates?
Rates may adjust based on market conditions, but any changes must remain within the bounds of Sharia compliance and are transparently communicated to you.
If funders can change their rates over time, does that make them non-compliant?
No. Rate adjustments are permissible provided they comply with Sharia principles and are transparently communicated. Market-linked pricing is acceptable in Islamic finance when structured correctly.

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