What is Ijarah?
The Arabic term Ijara means “providing services and goods temporarily for a wage.” The ijara contract involves providing products or services on a lease or rental basis. In the ijara contract, a person or party is given the right to use the object (the usufruct) for a period of time; the owner retains the ownership of the assets.
In Islamic finance, al Ijarah does lead to purchase (Ijara wa Iqtina, or “rent and acquisition”) and usually refers to a leasing contract of property which is leased to a client for stream of rental and purchase payments. ending with a transfer of ownership to the lessee.
This contract conforms with the Australian National Consumer Credit Protection Act 2009 (NCCP).
The ijara contract is similar to a conventional lease in which the owner rents or leases his property or goods to a lessee for a specified number of periods for a fee. For example, the lessee is responsible for normal maintenance, and the lessor is responsible for major maintenance, just as with many conventional lease contracts. However, the following features of ijara differentiate it from a conventional lease:
The lessor must own the assets for the full lease period.
If the lessee defaults on payments or delays payments, the lessor can’t charge compound interest.
The leased asset’s use is specified in the contract.
Apply for Meezan
Those who consume interest cannot stand [on the Day of Resurrection] except as one stands who is being beaten by Satan into insanity. That is because they say, “Trade is [just] like interest.” But Allah has permitted trade and has forbidden interest. So whoever has received an admonition from his Lord and desists may have what is past, and his affair rests with Allah . But whoever returns to [dealing in interest or usury] — those are the companions of the Fire; they will abide eternally therein.
Surah Al-Baqarah [2:2751
How is Ijarah finance
different to banks?
The main difference between buying a property through a Conventional bank and through Meezan Finance is that no exchange of money is taking place and thus no interest is being charged or paid.
The Arabic term Ijarah means Leasing. Hence the property is purchased on behalf of the client and the client leases it from the financier by the mode of regular rental repayments, with the view of taking legal ownership of the property once the payment terms have been met.
|Loan to purchase
|Rent to Own
|Transferred immediately upon settlement.
|Legal Title held by the Client.
Once final instalment is made by the client, the funder will transfer ownership to the client.
Client holds the property as an agent of the financier and is responsible for the maintenance and upkeep of the property.
|Fixed or Variable
|Variable rate for 1,2,3,4, or 5 years for upto 30 years
How does Ijarah work
Initial consultation to find the right home finance for you and to access your max borrowing capacity.
Complete an application and submit to us
Conditional approval is issued once a serviceability check is undertaken, documents have been verified and credit checks have come back satisfactory.
6. Ijarah Contract
The client and funder enter an Ijarah contract whereby the client agrees to pay rent for the property from the funder by making regular rental or Ijarah payments.
Property valuation, Final approval and settlement.
4. Find Property
The client becomes the Wakeel of Ijarah Finance. The client/Wakeel finds a property to purchase.
7. Move in
The client has the right to occupy the property whilst the finder holds a mortgage in the property.
Our Shariah Standards Comply with Global Islamic Standards
Our home Finance is accredited with the Mortgage and Finance Association of Australia and all our Ijarah products comply with the National Consumer Credit Protection Act 2009 (NCCP).
While maintaining the Australian credit law, our products are also compliant with sharia law.
Served 5,000+ Muslim clients with 13-year Industry experience
Offering Sharia’h complaint financial products
Fastest Finance Processing &
No Waiting Period
Islamic Financial services
Superior client service
In house Financial Adviser & Investment Portfolio
Bachelor in Business
(Accounting and Finance)
Diploma in Financial Services
Advanced diploma in Financial Planning
Diploma of Finance and Mortgage Management
Certificate IV in
Finance and mortgage broking
Self-Managed super fund Investments and Structures
Listed products adviser (ASX) and listed securities
Cert Iv in
Real estate Agent and Sales Person
What Our Clients Say
“We would like to express our thanks for the work you have done for us over the past years. The expertise and attention to detail with which you have handled our financial affairs could not be faulted. Particularly reassuring to us is our feeling of certainty in the absolute integrity of your dealings with us. Your continual advice on financial planning issues has saved us significant amounts of money. May you prosper, along with your clients.”
Dr Mutasim Sadiq
“Meezan finance provided us an outstanding service throughout the whole application process. The staffs were very responsive to our needs, answered our telephone calls and emails promptly, followed up with sellers, solicitors and arranged property settlement for us. We are happy that through Meezan Finance we have achieved the best Islamic loan for our family’s needs. We have no hesitation in recommending Meezan wealth to anyone.”
Senior Technical Manager (IBM)
“Passion, knowledge and a genuine interest in achieving the best for clients is what makes a truly professional Financial Adviser. Rokibul always had this and more. His dedication to clients, business excellence and education sets him apart and I would highly recommend him to anyone wanting to achieve better financial outcomes.”
IT Developer (Inenco Group)
“I am absolutely delighted with your service. It is really refreshing to work with a financial adviser who is truly interested in their client’s needs, circumstances and preferences. What really impressed me was the way you took the time to get a feeling for where I was at, your depth of knowledge, lateral thinking and your common-sense approach. Your professional, ethical and caring demeanour elicits my trust and respect and I gladly recommend your services whenever possible.”
Get in Touch
Our qualified team are ready to assist you with your questions.
Suite-104, 8 French Avenue, Bankstown, NSW 2200