What does Islam say about loans?
In Islam, a Muslim is not allowed to bear any kind of loan on them. Thus there are many alternatives and halal ways of getting finance through proper sharia-compliant loans Australia. There are many types and alternatives to getting finance for Muslims. Ijarah Finance is one such company in Australia that can help you in getting halal finance with ease. Contact us today to know more about us.
Islam forbids interest-bearing loans, so Muslims may prefer to seek a halal alternative when purchasing a property. There is a range of Islamic mortgage alternatives available according to sharia loans, allowing buyers to get on the property ladder while being sharia-compliant.
What is an Islamic mortgage?
Sharia Home Loans Australia is a kind of no-interest home purchase plan which Muslims can choose as they are permissible in Islam. It works very simply as the bank buys the property for the customer and the client pays them in form of rent for a specific period of time. This rent acts like payments and in these payments, a portion goes to the owner stakes. At the end of the term the property is bought by you or in some cases you settle by giving the rest of the amount to the legal owner.
What are different types of Sharia Bank Loans?
The three types of halal mortgage alternatives are:
- Diminishing Musharaka
In ijara a purchase plan or monthly plan is made in form of rent and this rent is half rent and half goes to the final purchase of the property. The share remains constant in this type of Sharia loans throughout the length of the term.
In this kind of sharia home loans, in Australia the client pays the banks monthly installments and through this, the ownership share grows and the bank shrinks. It is a mutual agreement.
Under the Murabaha no-interest purchase plan, your sharia-compliant provider buys the property and sells it to you at a marked-up price, which you pay in monthly installments.
As these Islamic mortgage alternatives are all slightly different, you should take care to consider the potential risks and advantages that may come with each, so as to find the right option for you.
Things to know before choosing an Islamic mortgage system?
Although the sharia bank loans you choose is the legalized owner of the property there are many costs that you have to cover. Costs like the cost of insurance, general maintenance, and convincing stamp duty for the starting purchase. All these costs will be added to the purchase amount and you should know this.
Why choose us for getting sharia loans?
We will provide you with a solution so that you can own your property without compromising your religious beliefs and encourage you to contact us today!
Ijarah Finance is a business owned by Mortgage Providers Pty Ltd which has been trading since 2003. Our brokers have been ranked in the Top 100 brokers in Australia by Macquarie Bank & Mortgage Professionals Australia Magazine.