We're happy to answer any inquiries you may have but here are some Frequently Asked Questions that might help you out.
Ijarah Finance is open to Australian Citizens, Permanent Residents, Non-Residents and Non- Citizens. Approval is subject to meeting the selection criteria of the financier.
Your consultant will explain what documents you will need to provide at the time of application. Please click here for more information.
Ijarah Finance facilitates a ‘lease to own’ approach or Ijarah Muntahiya Bil Tamleek. This is a widely accepted process of funding an asset acquisition and has been approved by Islamic scholars.
The financial institution will earn a profit by charging the client rent for the use of the asset.
The client will make the first payment one month after the settlement date.
Extra voluntary repayments can be made to a maximum limit of $10,000 per annum for a fixed rental rate.
A flat fee will be charged. This covers administrative fees when our staff are required to open your file and investigate any defaults.
Yes. The client has the sole responsibility for the property, including maintenance and upkeep.
Yes. You may sell the property or purchase the property outright at any time provided the funder’s interests in the property are settled (i.e. all outstanding rentals amounts are paid out).
As part of the Ijarah Finance Agreement, the client is a Wakeel or agent of the funder hence the client is responsible for all maintenance, repairs and taxes associated with the property.
Once all payments have been made in accordance with the Ijarah Finance Agreement, the Financier will discharge the property to the client for a nominal fee which is currently $100.
Ijarah Finance facilitates a lease agreement with the view to own the leased asset at the conclusion of the lease contract. This is otherwise known as Ijarah Muntahiya Bil Tamleek.
Yes, the property will be registered in your name but the lease contract will stipulate that you are holding the property as an agent of the funder. Once the final rental instalment has been paid, the funder will sell its share in the property at a nominal discharge fee.
Ijarah Finance have access to various financial institutions who provide either variable or fixed fees depending on the type of contract or asset class. Whether the contract must be variable or fixed depends on individual scholarly opinions. Scholars are not unanimous about this and you will find arguments for and against.