Islamic SMSF Finance
Our Islamic Finance SMSF facility is now available
Introducing our pioneering Islamic Finance SMSF Sharia-based products, the first of their kind in Australia launched in 2024. These innovative solutions empower Islamic customers to acquire properties within their SMSF in a Sharia-compliant manner.
If you have a Self-Managed Superannuation Fund (SMSF) and seek property finance to expand your investment portfolio while adhering to Sharia principles, Ijarah Finance offers a range of tailored products to meet your needs.
Our Islamic-based SMSF halal finance solutions are structured according to Sharia principles, utilizing our proven Ijarah Finance methodology across various property and asset classes.
Key Features:
- Up to 80% LVR – Residential only
- Residential Property – Refinance only
- Commercial Property – 75% LVR
- Industrial Property – 75% LVR
- Purchase & Refinance Options
Our Sharia-based SMSF finance facilities also enable you to transition from conventional interest-based loans to Islamic SMSF finance arrangements.
Islamic SMSF Finance in Australia
Our groundbreaking Islamic SMSF finance is designed specifically to support Muslims in Australia, with Sharia-compliant financing solutions that don’t entail any form of usury.
Adhering to Islamic principles is important not only for spiritual reasons but also because it provides tangible, real-world benefits and avoids the exploitation commonly seen in Western financial practices.
You can be sure that Ijarah Finance offers a variety of solutions that satisfy the particular requirements of Islamic investors and guarantee adherence to Sharia for peace of mind and inclusion of the Muslim community.
How Does Islamic SMSF Finance Work?
Sharia principles guide Islamic SMSF financing by prohibiting earning interest (riba). Instead, this financing model is based on leasing (ijarah).
In this model, property is purchased by a trust and then leased out to the SMSF. This allows the SMSF to pay rent and take possession of the property, with the option available to outright purchase the property at the end of the lease term.
This provides a satisfactory halal alternative to conventional interest-based loans, thereby ensuring compliance with Islamic laws and principles.
How to Apply
We have made every effort to ensure that applying for Islamic SMSF finance is as straightforward and easy as possible.
Click “Apply”
First, click on the apply button on our website and fill out the contact form. One of our consultants will get in touch with you to help you determine whether SMSF finance is suitable for your needs.
Documentation
After the initial consultation, you will need to provide the necessary personal documentation, including those related to your SMSF and the property you intend to finance.
Assessment
Ijarah Finance will assess your application, considering Sharia compliance as well as financial viability, to determine whether the product is suitable for you.
Approval
Once your application is approved, the trust will purchase the property and lease it to you.
How Does Sharia Finance Help?
Muslims face challenges in the Western world of financing because traditional lenders engage in usury by charging interest on conventional loans.
Through Ijarah Finance, we are able to provide Sharia-compliant assistance to Muslim investors who want to grow their portfolio without contravening their religious beliefs.
Avoiding interest and speculative activities is crucial for Sharia-compliant financial practices and helps ensure that you engage only in ethical investment practices.
Sharia finance can offer you peace of mind and support the growth of your wealth in a manner that aligns with the traditions and values of Islam.
Frequently Asked Questions
2. Can I refinance a conventional SMSF loan to Islamic SMSF?
Yes, you can refinance any SMSF loan held with a conventional lender to our Sharia SMSF product.
3. Who will own the property when it’s funded using this Sharia SMSF finance arrangement?
The bear trust will own the property.
4. Can I pay extra on Islamic SMSF finance?
Yes, you can make extra advanced payments on finance.
5. Can I redraw on my SMSF?
No, you cannot redraw or cash-out with an SMSF finance facility the way one can do with a conventional loan.
Take control of your SMSF investments with our Sharia-compliant SMSF finance product. Designed to align with your faith-based principles, it empowers you to confidently purchase property within your Self-Managed Superannuation Fund (SMSF).
Discover how our dedicated team can assist you in obtaining Sharia-compliant finance for your SMSF. Contact us today to learn more and discuss your options.