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Finance FAQs

Your questions, answered with clarity and trust.

How do I apply for finance?

Applying for finance with Meezan finance is an easy process.
Step 1: Register your interest on our website – Application for Finance Australia’s leading Islamic Super I Halal Finance I Ijarah loans solution
Step 2: After you apply, our team will get in touch with you within one business day.
Step 3: We will set up a meeting (either in-person, phone or online) with you to work out your maximum borrowing capacity and how best we can assist you.

No, you are not required to be a member of Meezan to be eligible for finance. However, you may be eligible for a discounted application fee if you an existing Meezan Islamic super member.

No, there is no waiting list. we have available funds to offer you the finance you
require.

One of the distinct advantages of being a subsidiary of an Asset Management and wealth advisory firm, Meezan Wealth can source funds from investment pools which are available to us. we source non-bank funding from various Australian financial institutions including but not limited to private equity firms, non-bank lenders and wholesale funding bodies.

Applying for a loan is easy. You simply complete an application form, provide supporting documents and submit this to us. We will then conduct a serviceability test to determine whether you can borrow the amount that you have applied for. Thereafter, you will be provided with a conditional pre-approval.

We will consider some important factors such as employment, Income, assets, liabilities, and dependants.

The amount you can borrow depends on a few key factors, including your income, expenses, existing debts, credit history, and the deposit you can contribute. To give you an accurate borrowing estimate, we can assess your financial situation and provide a clear calculation of your borrowing capacity. This ensures you can comfortably manage repayments while staying within your budget.

Yes, you can sell your property anytime, but you’ll need to settle any outstanding finance or obligations with your provider before or at the time of sale.

Yes, you can make unlimited additional repayments on a variable rate home loan. Making extra repayments is a great way to reduce your balance sooner and save on the overall cost of the loan

Yes, you have the sole ownership of the property

Yes, you will be the sole owner and the title holder from day one.

At Meezan finance, we are committed to offering only Shariah-compliant financial solutions. All of our financing products are structured in strict accordance with Islamic finance principles — avoiding interest (riba), excessive uncertainty (gharar), and any activities or structures not permitted under Shariah. To ensure full compliance, we maintain robust Shariah governance through: – An independent Internal Shariah Board, which reviews and certifies all products and documents – Membership and engagement with external Shariah compliance regulatory bodies across Australia – Ongoing Shariah audits and reviews, ensuring our offerings remain halal, ethical, and transparent Through this governance framework, we give our clients confidence that their property financing is fully aligned with their Islamic values.

The product is structed using the Islamic Finance model known as Ijaara Muntahiya Bi Tamleek (Shared Equity Rental). Using this structure enables us to allow the title to the property to be held in the client’s name with the client making fixed monthly repayments. Each repayment comprises two components, a rental portion for residing in our share of the property and an equity buy back to acquire our share of equity in the property. As you acquire more equity in the property, the rental component decreases, and the equity component increases until the property is purchases outright or you sell/refinance.

Ijarah Muntahia Bittamleek is a Shariah-compliant lease-to-own financing option.
Here’s how it works:
– The financier buys the property you want and leases it to you.
– You make agreed rental payments to use the property — these are not interest-based.
– At the end of the lease term, once all payments are made, ownership of the property is transferred to you.
This structure allows you to buy property in a fully halal way — with no interest and full transparency. It is commonly used for both residential and investment properties.

A Low Documentation (Low Doc) Home Financing Option is designed to assist
applicants — particularly self-employed individuals who may not be able to provide the full suite of conventional income verification documents required under the Full Documentation option.

This option is commonly used by:
– Self-employed professionals
– Business owners
– Individuals with complex income streams

Under the Low Doc option, you may be asked to provide:
– A signed income declaration
– Business Activity Statements (BAS)
– Business bank statements
– Proof of assets and liabilities

The Low Doc option can be used for:
– Purchasing a property
– Refinancing existing Shariah-compliant finance
– Facilitating access to approved property finance structures in line with your financial profile.

All Low Doc financing solutions offered by Meezan finance are structured to comply fully with Islamic finance principles.

The property title will generally be registered in your name. However, under the Shariah-compliant contract, you will hold the property subject to the financier’s beneficial interest until you have fully settled your financing obligations. The financier’s interest will be formally discharged once the final payment is made, at which point you will hold full and unencumbered ownership of the property.

Meezan finance offers Shariah-compliant property financing, the way your payments are treated for tax purposes depends on the type of financing you choose and the purpose of the property: ‍

– For Investment Property (Ijarah – Lease-based financing): If you are financing an investment property through an Ijarah contract, the rental payments you make may generally be tax deductible — as long as the property is used for investment purposes. Please consult your tax advisor for guidance. ‍

– For SMSF Property Financing (Musharakah – Partnership-based financing): If your Self-Managed Super Fund (SMSF) is financing a property through a Musharakah contract, your payments include both principal and a dividend (profit share) paid to the financier. The dividend portion of these payments is generally tax deductible under current Australian Taxation Office (ATO) and SIS Act guidelines.

Important: Tax laws can change, and every client’s situation is different. We strongly recommend seeking independent tax advice to ensure you’re making the most of any available deductions.

Your pre-approval is valid for 90 days from the date of issue.

Meezan Finance relies on investor capital as funding source, which is affected by market changes like RBA rate decisions. If the RBA raises or decreases their cash rates, investors usually expect higher or lower returns, which can impact your Ijarah rate.

Our clients are notified in a timely manner and ijarah rate are adjusted accordingly. This approach helps Meezan stay competitive and continue offering Shariah- compliant finance.

At Meezan Wealth, we are dedicated to providing Sharia-compliant Ijarah Home Finance, an ethical leasing solution that aligns with Islamic principles. Our innovative ijarah financial solutions are designed to help individuals and businesses acquire essential assets without the burden of interest. Whether you are looking for financing for real estate or any other asset, our tailored solutions can meet your unique financial needs.

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).

That depends on a few key details, we calculate your borrowing power based on your full financial picture. To give you an accurate estimate, we need to understand your income, expenses, debts, savings, finance type and finance term.

The deposit you need depends on how much you want to borrow. Usually, you need 20% of the property’s value for your deposit, also known as an 80% loan-to-value ratio (LVR). For example, if the home’s worth $600k you’d need $120k.

We may fund up to 90% of the value of your property, which means you’ll need a minimum of 10% as a home deposit. However, there may be benefits in saving a larger home deposit. For example, if you borrow more than a certain level (commonly 80% of the value of the property you’re using the loan to buy), you might have to pay lender’s mortgage insurance (LMI). This can add a sizeable amount to your overall costs.

Generally, the more you have as a home deposit, the less you’ll need to borrow and the lower your monthly repayments

If you have 10% of the property value you will need to Pay Lenders Mortgage Insurance (LMI). You can pay it upfront or add it to your loan, but adding it means it will attract profit charges.

Yes, we have online portal available to pay bills and transfer funds anywhere in Australia. You can also access your account balance, redraw funds from your finance and see transaction history whenever you want.

Yes, you can change or set up your Direct Debit amount, arrangement, frequency, date, account number and cancel a Direct Debit arrangement online. Simply log onto online portal, go to your loan and select ‘Manage’. You can also send an email to [email protected] for support.

Yes, you can transfer the loan purpose from Investor to Owner Occupied or vice versa.
To initiate a loan purpose transfer, please email
[email protected]

You can access your statements at any time by logging onto our online portal. If you require any past statements, please email your request to [email protected]

Please note a statement fee of $15 may apply.

When you refinance a home loan, it means taking out a new halal home loan to replace your current bank home loan or from another provider. Your current home loan is paid out by the new financier. Thereafter, your repayments and finance
arrangements are with as per your updated halal finance contract

LVR stands for Loan to Value Ratio and it’s the amount you’re looking to borrow, calculated as a percentage of the value of the property you want to buy.

For instance if you’re borrowing $400,000 to buy a $500,000 property, your LVR would be 80% (because $400,000 is 80% of $500,000).

LVR is important because it may affect your borrowing power. Generally, the lower the LVR the better, as it carries less risk for the lender. If your LVR is above 80% (that is, you’re looking to borrow more than 80% of the value of the property you want to buy), you may need to pay Lenders Mortgage Insurance (LMI). Generally speaking the higher your LVR, the more LMI will cost.

A fixed rental rate home loan is one where your rental rate is locked in (i.e. fixed) for a certain period, typically between one and five years. During the time your rental rate is fixed, both your rental rate and your required repayments won’t change. Generally, at the end of the fixed term your loan will roll over to a variable rate, unless you choose to repeat the process (if eligible).

A variable rental rate home loan, on the other hand, can change at any time. The rental rate may change in response to decisions made by the Reserve Bank of Australia, as well as other factors. Your required minimum repayment amount will increase if rental rates go up, and decrease if rental rates fall.

If you choose profit only, the minimum payment amount on your loan will be lower during the profit only period because you are not required to repay any of the loan principal. You will have to repay the principal down the track and so you may end up paying more over the life of your loan. There may be additional restrictions on the amount you can borrow or loan type you can select if you choose to pay profit only.

Choosing to repay rent plus principal means that, with each repayment, you’re paying off profit charges as well as some of the loan principal.

An offset account is a transaction account that’s linked to your home loan. You can deposit or withdraw from it as often as you like.

Every dollar in your account reduces, or offsets, the profit you pay on your home
loan.

An offset account works best when you keep as much money in it as you can, for as long as you can. Here are a few easy ways to do this.

This way every dollar of your income’s always working for you.

For example, if you have a savings account with a lower interest rate from a conventional bank than your halal home loan, you may be better off parking your savings in your offset

Every day, 100% of the balance in your Meezan transaction offset account is ‘offset’ against the amount owed on your meezan home loan. As profit is calculated daily and charged monthly, only the net amount (the balance of your loan minus your offset balance for that day) attracts profit.

For an offset account to work effectively, any amount added to the account should be deposited and not withdrawn to reduce the amount payable on the loan.

It’s up to you, as parking your spare money in either your offset or variable rate home loan account will reduce your home loan profit by the same amount. As for accessing your extra funds, our home loans let you make unlimited extra repayments and redraws, with no redraw fee.

Let’s say your offset transaction account balance is consistently over $40,000: 
 If you’re disciplined in your spending, you could leave your spare $40,000 in your offset 
 If having $40,000 in your transaction account’s ‘too tempting’, you could make an extra repayment of $25,000 into your home loan. The $25,000 would still be available to redraw, but psychologically it seems less easy to access.

If you have made repayments above the minimum required by your lender, a redraw facility will give you the ability to withdraw those extra repayment amounts from your loan account. 
 
While the definitions of redraw and offset sound different, they are similar. Both use your extra cash to reduce the profit you pay on your mortgage while allowing you to access your cash later. The reduction in profit generally works the same in both
cases, it is the access to funds where they mainly differ.

You access your funds in an offset account the same way you would a linked transaction account, which could include a debit card, payID, through online portal transfer.

Which type of facility you use will depend on your personal circumstances and any additional interest or fees you may need to pay for using the facility. Some people prefer the restrictions on their access to funds in a redraw facility. They find that if they are saving for a specific goal such as renovations, a new car or a big holiday, the restrictions help them to stick to their goal.

Other people like to use their transaction account as their offset account, as they want easy daily access to the funds. Often it will be the account they deposit their income into and pay all their bills from. This way they get the benefit of their income until they pay their bills.
If you can afford to save or make extra repayments to your home loan, then a redraw facility or offset account could help you to pay less profit on your mortgage and pay off your home loan sooner.

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