AUSTRALIA ISLAMIC MORTGAGE WITHOUT INTEREST (RIBA)

For Muslims in Australia, access to Riba-free mortgages is vital to achieve home ownership without compromising their faith; halal home lones enable families to build wealth, invest in property, and participate in the housing market in line with their religious beliefs.

Is it possible to get an Islamic Mortgage without paying interests in Australia ?

Yes ✅ — it is possible to get an Islamic mortgage without paying interest in Australia.

Instead of charging interest, Islamic home financing in Australia is structured through Shariah-compliant contracts such as:

• Murabaha (cost-plus sale): the financier buys the property and sells it to the buyer at an agreed markup, with payments made in installments.
• Ijara (lease-to-own): the financier purchases the property and leases it to the client, with part of the rent going toward eventual ownership.
• Diminishing Musharakah (declining partnership): the buyer and financier jointly own the property, and the buyer gradually purchases the financier’s share while also paying rent on the remaining portion.

These models ensure that the transaction is asset-backed, transparent, and free from Riba (interest). Payments are structured as profit, rent, or equity buyouts rather than interest on borrowed money.

In practice, the eligibility process is similar to conventional mortgages (deposit, income proof, repayment ability), but with the added requirement that the property and contract fully comply with Islamic finance principles.

Are deposit requirements for Islamic mortgages in Australia different from conventional home loans?

Here’s how deposit requirements work for Islamic mortgages in Australia compared to conventional ones:

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🔹 Conventional Mortgages in Australia

• Minimum deposit is typically 5% to 20% of the property value.
• If the deposit is less than 20%, borrowers usually must pay Lenders Mortgage Insurance (LMI).

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🔹 Islamic Mortgages in Australia

• Deposit requirements are usually similar or slightly higher than conventional mortgages.
• Many Shariah-compliant financiers require a minimum of 20% deposit, because:
  • The financier is actually buying the property first (Murabaha, Ijara, or Musharakah).
  • Shariah boards often encourage a larger deposit to reduce risk and ensure fairness.
• In some cases, community-based cooperatives may allow smaller deposits, but 100% financing is generally not available.

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🔹 Why the Difference?

• Islamic contracts involve shared risk between buyer and financier.
• A healthy deposit ensures that the client has a real stake in the property from the start, which is consistent with Shariah principles of responsibility and partnership.

Where can I find an Islamic bank or a mortgage lender Australia ?

Here are the key providers in Australia offering Shariah-compliant (interest-free) home financing, categorized by region and type:

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Sharia-Compliant Home Financing Providers in Australia

Amanah Islamic Finance

• Type: Non-bank lender specializing in Shariah-compliant home and commercial financing.
• Presence: Nationwide coverage, with dedicated representatives in major cities including Sydney, Melbourne, Brisbane, Perth, and Adelaide.
• Offers home finance, investment property funding, land and construction finance, refinancing, and commercial financing.Amanah Islamic Finance

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ICFAL (Islamic Co-operative Finance Australia Limited)

• Type: Co-operative offering Diminishing Musharakah (declining partnership) home financing.
• Presence: Serves clients across Australia, accessible online.
• Provides halal home finance, refi options, and tailored Musharakah structures—all fully Shariah-compliant.ICFAL

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Ijarah Finance

• Type: Non-bank lender focused on the Ijarah Muntahia Bit Tamleek (lease-to-own) model.
• Presence: Available nationwide, though based in Bankstown, NSW.
• Holds an ASIC credit license (387688) and has been providing Islamic finance since 2003.Ijarah Finance

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Hejaz Asset Management (HejazFS)

• Type: Ethical investment manager offering “Gold Home Finance” and “Flexible Home Finance” through Shariah-aligned home financing.
• Presence: Operates across Australia, accessible through their online platform.
• Features include up to AUD $25 million financing, low deposits, and unlimited additional repayments.Hejaz Financial Services

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Meezan Wealth

• Type: Non-bank fintech provider offering Ijarah (lease-to-own) Shariah-compliant home loans.
• Presence: Accessible across Australia online.
• Offers up to 90% LVR, competitive finance rates, online access, redraw facilities, and flexible repayment schedules.Meezan

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Halal Mortgage Australia

• Type: Specialist provider of Shariah-compliant mortgage solutions.
• Presence: Nationwide via an online platform.
• Focuses on ethical, value-aligned home purchasing options.halalmortgageaustralia.com.au

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Islamic Finance Brokers – Afiyah

• Type: Brokerage service specializing in Shariah-compliant lending.
• Presence: National, with a digital-first brokerage model.
• Helps clients understand financing models and selects fully compliant products.Afiyah Islamic Wealth

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