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MEEZAN FINANCE

What is Ijarah?

We understand that proving your income isn’t always straightforward. We provide alternative options for income verification, making it easier for self-employed individuals to access financing.

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 to 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.

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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

Key Features of Ijarah Home Finance

Ijarah Home Finance offers a range of unique features that set it apart from traditional financing options. These elements ensure our clients benefit from secure, ethical, and flexible financial solutions. Here are the key features that make Ijarah Home Finance an ideal choice for your asset acquisition needs:

  • Asset Ownership: Throughout the lease term, the lessor retains ownership of the asset. This structure ensures that your financing is secure and rooted in real assets.
  • Risk Sharing: Ijarah promotes a fair distribution of risk between the lessor and lessee. This allows you to enjoy the benefits of using the asset while we manage the risks associated with ownership.
  • Customisable Terms: Our Ijarah agreements can be tailored to fit your specific requirements. This flexibility makes ijarah a versatile option for various asset types.
  • Sharia Compliance: Meezan Wealth adheres strictly to Islamic principles, avoiding interest (Riba) and speculative transactions (Gharar). Our commitment to ethical financing ensures you can engage in transactions that reflect your values.
 
Ijarah Finance vs Riva

How Is Ijarah Home 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.

Benefits of Ijarah Home Finance with Meezan Wealth

Ijarah Home Finance presents numerous advantages that cater to the unique needs of our clients. Here are the key benefits of Ijarah Home Finance:

  • Shariah Compliance:

Ijarah adheres to Islamic principles by avoiding interest (Riba), making it suitable for those seeking financing that aligns with their religious beliefs.  

  • Asset Ownership:
    • Deferred Ownership: The lessee (customer) gains the right to use the asset for a specified period, but ownership remains with the lessor (financing institution).
    • Transfer of Ownership: At the end of the lease term, the lessee may have the option to purchase the asset at a predetermined price, effectively transferring ownership.
  • Fixed Payments:
    Ijarah contracts typically involve fixed lease payments, providing financial certainty and making budgeting easier.  
  • Flexibility:
    Ijarah can be tailored to meet specific business needs, accommodating factors like asset type, lease term, and payment schedule.

 

 Bank LoanMeezan Finance
FacilityLoan to purchaseRent to Own
OwnershipTransferred 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.
Rate TypeFixed or VariableVariable rate for 1,2,3,4, or 5 years for upto 30 years

How does Ijarah work

01

Consultation

Initial consultation to find the right home finance for you and to access your max borrowing capacity.

02

Apply

Complete an application and submit to us

03

Approval

Conditional approval is issued once a serviceability check is undertaken, documents have been verified and credit checks have come back satisfactory.

04

Find Property

To find out more about Concessional and Non-Concessional contributions, the ATO or money smart Gov website.3

05

Settlement

Property valuation, Final approval and settlement.

06

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.

07

Move in

The client has the right to occupy the property whilst the finder holds a mortgage in the property.

Why Choose Us?

At Meezan Wealth, our commitment to excellence in Islamic finance sets us apart. Our experienced team provides personalised service and expert guidance, ensuring you understand every aspect of the Ijarah Home Finance process. We prioritise transparency and integrity in all our financial solutions, helping you make informed decisions.

Get Started with Meezan Wealth

Contact us today if you’re ready to explore how Ijarah Home Finance can meet your needs. Our team is here to provide you with the information and support necessary to navigate your financial journey ethically and effectively. Discover the benefits of Ijarah Home Finance with Meezan Wealth and take the next step toward achieving your financial goals while adhering to your values.

Sharia Certified

Our Sharia Standards Comply with Global Islamic Standards

High level sharia principles

The accounting and Auditing organisation for Islamic financial institutions is an international Islamic non-for-profit corporate body that prepares auditing, governance, ethics and Shari’a standards for Islamic financial institutions.

High level investment screening

IdealRatings web-based asset management service offers to major financial institutions a complete solution for the entire Shariah fund management operation, that empowers professionals to launch and manage their Shariah compliant funds and help them generate the highest alpha available through a very tight compliance and Shariah purification process.

Our World class shaira board

SRA Consulting , based in Malaysia is a leader in Islamic finance, having excellent networking with Islamic finance experts locally and globally.

Why Choose Mezan Wealth

  • Served 5,000+ Muslim clients with 13-year Industry experience
  • Offering Sharia’h complaint financial products
  • Fastest Finance Processing & No Waiting Period
  • Highly Qualified
  • Experience Professional Team
  • Experience Professional Team
  • Experience Professional Team
  • Experience Professional Team

Bachelor in Business

(Accounting and Finance)

Diploma in Financial Services

(RG146)

Advanced diploma in Financial Planning

Diploma of Finance and Mortgage Management

Finance and mortgage broking

Certificate IV in

Self-Managed super fund Investments and Structures

Certification in

Listed products adviser (ASX) and listed securities

Certificate in

Real estate Agent and Sales Person

Cert Iv in

Let's Get In Touch!

There are over 800,000 Muslims in Australia, that number is only growning. Get in touch to see how we can help you stay on the right path and avoid Riba.

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At Meezan, it is about your needs, your goals, Your future. You are the reason we exist. We are here to give you the best help we can give. You are our focus and our motivation.

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Meezan Pure Wealth Pty Ltd:
ABN- 76 642 263 250 ACN-642 263 250
Corporate Authorised Representative (ASIC No. 1283123 of Lifespan Financial planning Pty Ltd (AFSL 229892)
Tax practitioner Board, Tax (Financial) Adviser registration number – 25294218
Super Simplifier Super & Pension (the Fund) is issued by Equity Trustees Superannuation Limited (ETSL).
ABN: 36 526 795 205
Unique superannuation
Identifier: 36 526 795 205 001

Meezan Finance Pty Ltd:
ABN- 30 642 725 639 ACN-642 725 639
Authorised Credit Representative (529817) of Kuone Pty Ltd T/As 360 MMS, Australian Credit Licence-504193)
Member of The Finance Brokers association of Australia Limited (FBAA) -M-348502
Meezan Invest Pty Ltd
ABN- 146 639 62105 ACN- 663 962 105
Corporate Authorized Representative (ASIC No.1283123 of Lifespan Financial planning Pty Ltd AFSL 229892)