islam finance
islam finance

As Australians search for ethical ways to access financial services, Halal finance is becoming an increasingly attractive way to secure a home loan. A Halal home loan works in a slightly different way than a traditional mortgage does - Islamic finance provider Hejaz Financial Services is here to help.

Hejaz Financial Services is on a mission to offer Australians from all walks of life an ethical alternative to traditional financing options. While primarily targeted at Muslim Australians, their Sharia loans are available to everyone - as long as they understand that they do not operate in the same way as mainstream lenders. Halal home loans adhere to a strict set of regulations to ensure they remain Sharia-compliant.

The Halal finance professionals explain that while traditional home loans charge interest, Sharia dictates that money should not be made from money. Thus, Halal home loans will never charge a cent of interest. Instead, the Halal lender will purchase most of the home in question, and the customer will purchase the rest. Over time, the customer buys back the lender's portion of the property in a pre-agreed repayment schedule. On top of repayments, the customer will pay the bank a fee with each repayment that covers rent and other costs associated with living in the home. 

In order for a home loan to remain completely Sharia-compliant, explains Hejaz Financial Services, it must adhere to the following: money used to fund the loan must be sourced from compliant sources, such as ethical or Islamic investment funds; borrowers must not use the loan to engage in commercial activities that defy Islamic beliefs, such as casinos, breweries or brothels; lending must be conducted using a unique contract that combines requirements of the Islamic Ijara and Australia's National Credit Code; and the transaction must be conducted in a fair, equitable and transparent manner between lender and borrower. These regulations ensure all loans remain ethical and Sharia-compliant.

Hejaz Financial Services is confident that access to Halal loans will continue to increase as Australians search for more ethical ways to achieve their dreams of owning property.

Contact us - 

Level 11, 2 Queen Street Melbourne 3000

PO BOX 96 Flinders Lane VIC 8009

1300 043 529