Ijarah Finance is a Bankstown, Sydney financier that arranges rent-to-own (Ijarah Muntahiya Bit Tamleek) finance for homes, commercial and rural property, SMSFs and, for ABN holders only, vehicles and business equipment. It trades under Australian Credit Licence 387688 as a subsidiary of Mortgage Providers Pty Ltd, which has operated since 2003, and its contracts are certified by FSAC, a Singapore-based Shariah advisory firm whose five advisors are named on the company's site. Minimum deposits are published, starting at 5% for residential property; rates are not. This review covers what Ijarah Finance publishes, what it does not, and who it suits in October 2026.
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What Ijarah Finance is, and what it is not
It is not a bank and not a co-operative. The FAQ states there is no membership, no waiting list, and that the Ijarah contract is simply between you and the funder. The funders are described as Australian wholesale funding bodies, finance houses, major banks, non-bank lenders, small banks and private equity firms. The company says it does not pay interest to those funders or borrow from them at interest, that it is not in a lender-borrower arrangement with them, and that it only offers rental-based finance contracts. It describes its income as fees and commissions paid by funders and, at times, a fee for service charged to the customer. In plain terms, Ijarah Finance is a specialist finance facilitator and mortgage manager with its own certified contract set, and the Ijarah Finance provider profile holds the corporate record.
The lineage is the longest in Australian Islamic finance outside the co-operatives. Mortgage Providers Pty Ltd has traded since 2003, is a full member of the Mortgage and Finance Association of Australia, and says its brokers have been ranked in the top 100 in Australia by Macquarie Bank and Mortgage Professional Australia magazine. The company says its internal staff carry more than 55 years of combined banking and finance experience and that some have underwritten or worked on more than $2 billion of finance applications since 2000. Its products are stated to comply with the National Consumer Credit Protection Act 2009, which matters because it brings responsible lending and hardship rules to a contract that is otherwise written in rental language.
The product shelf, product by product
No other Australian Islamic provider publishes as many distinct products. The deposits below are the minimums printed in the company's FAQ and product pages; every one is expressed as deposit plus costs, meaning stamp duty, legal and valuation fees come on top.
| Product | What it is | Published minimum deposit |
|---|---|---|
| Home Ijarah (variable) | Purchase, build, home and land package, refinance | 5% plus costs |
| Ijarah Fixed 'Thabet' | Fixed rental for 2 to 10 years, no break cost | 5%; 10% for the no-tax-return low doc version |
| Low Doc Ijarah | Self-employed without full financials, residential or commercial | 10% residential, 25% commercial |
| Vehicle and Asset (Ijarah Thuma Al Bai) | Cars, utes, trucks, machinery, equipment for ABN holders | Not published; FAQ notes a vehicle customer may put in no deposit |
| Commercial Property Ijarah | Commercial, industrial and retail property | 25%, including low doc |
| Rural Property Ijarah | Farms and rural land | 25% |
| Vacant land only | Land without construction | 20% |
| Islamic SMSF | Property held inside a self-managed super fund | Not published |
The home product is the flagship and is reviewed in detail in our Ijarah Finance home products review. Three features are worth repeating: the 5% residential deposit is the lowest published by any Australian Islamic provider alongside Amanah; the company says the larger the deposit, the better the rental rate it can offer; and the site states the business can also finance non-residents and non-citizens subject to funder criteria and, where relevant, Foreign Investment Review Board approval. Property development finance and lease-doc commercial finance also appear on the site, which places Ijarah Finance in commercial territory most competitors do not touch.
Thabet: the fixed option and what it gives up
Thabet is the fixed-rental product and the company's answer to the scholarly view that a lease rental should not change during an agreed term. The published terms are precise: fix for any period between 2 and 10 years; neither the rate nor the payment changes during the fixed term; extra payments are unlimited; lump sums can be paid at any time without penalty; you can pay out and close early with no break cost and no fixed break fee. The company frames the product as aligning with a scholarly opinion that fixed terms meet the highest standard of compliance while acknowledging that scholars differ.
The trade-offs are equally clear. There is no redraw of extra payments, no offset account, and Thabet is not available for construction, commercial or development finance. When a fixed term ends the funder offers its then-current fixed or variable pricing, and if you do not accept it you are free to refinance elsewhere or pay out. The fixed versus variable rental guide sets out when a 10-year fix is worth losing an offset for; the short version is that it suits a household that values payment certainty over liquidity.
Vehicle and equipment finance: the ABN gate
The vehicle product, reviewed separately in our Ijarah Finance vehicle and asset finance review, is restricted to self-employed customers with an ABN held for one year or more, operating as a sole trader, partnership, company or trust, and acquiring assets for business use. The structure is Ijarah Thuma Al Bai, rent ending with an offer to buy. Monthly rentals are fixed for the term and do not move with the RBA cash rate. Lease and rental facilities carry GST on the instalments; hire purchase does not. Title stays with the financier while the vehicle is registered in your name, which the company says avoids double stamp duty. The buyout is the remaining balance plus a nominal fee, and no balloon or residual is required unless ATO guidelines designate one for the product.
Three exclusions are printed: Uber and rideshare cars, laser hair removal machines except for doctors and specialist skin clinics, and gym equipment. Insurance is required with the fund noted as an interested party. Refinancing an interest-based chattel mortgage into the structure and sale-and-leaseback of existing business assets are both offered. The FAQ states that employees cannot use the product and that a consumer version was being planned; as of 29 September 2026 the page still carries that wording, so ask directly whether a consumer car product has launched before assuming it has. The car financing hub lists the providers that do serve employees.
What Ijarah Finance publishes about rates and fees, and what it does not
Rates are not published anywhere on the site. The FAQ explains that funders set rental rates and may change them over time, that a variable rental will generally move when the RBA changes the cash rate, and that the choice between fixed and variable is the customer's under the NCCP Act and Best Interest Duty. The company also notes that provided the funder's pricing is clearly disclosed at application, you are free to decline it, which is accurate but means the only way to learn the price is to apply or request a written quote.
Fees are described rather than tabulated. The company is paid by funders through fees and commissions and may charge a fee for service. On default, dishonour fees, default notification fees and legal notification costs apply, and the FAQ is unusually candid that funders will withdraw Islamic contracts if defaults run above average. At the end of a property contract the financier discharges the property for a nominal fee that varies by contract; for a vehicle the end can include a residual payout and discharge costs. Valuation and application processing fees are not quantified on the pages we read, so ask for a full fee schedule.
- Request the rental rate and, for consumer contracts, the comparison figure the funder is required to disclose.
- Request the complete fee schedule: application, valuation, documentation, monthly, discharge and default fees.
- Confirm whether the rental is fixed or variable, the review mechanism, and what happens at the end of a Thabet term.
- Ask which funder stands behind your contract and whether that funder is a bank, non-bank or private fund.
- For vehicles, confirm whether the paper is a lease, rental or hire purchase, because GST treatment follows the paper.
Shariah certification: FSAC and the five named advisors
Ijarah Finance's contracts are certified by FSAC, the Financial Shariah Advisory and Consultancy, a Singapore-based firm. The company names five advisors on its Shariah board page: Ustaz Mohamad Hasbi Bin Hassan, Ustaz Pasuni Bin Maulan, Prof Dr Hikmatullah Babu Sahib, Mr Azman Ismail and Dr Shamsiah Bte Abdul Karim, with biographies that reference Pergas Singapore, the Islamic Religious Council of Singapore, Standard Chartered Saadiq Malaysia and Bank Muamalat Malaysia among other roles. Separate certificates are linked for the property contracts and for the vehicle and equipment product. The company's explanation for using a Singaporean board is that no Australian firm specialises in financial contract certification and that Singapore's credit, contract and tax laws are similar to Australia's.
Two things to weigh. First, the certification is of the contract, not of the funder: the FAQ states plainly that the funder does not need to be an Islamic bank for the contract to be compliant, and the funders listed include major banks and private equity firms. Second, the company says it does not pay interest to those funders, which is a stronger claim than most competitors make and one you are entitled to ask it to explain in your own meeting. Our guide to verifying Shariah governance in Australia explains how to read a certificate and what questions a named board should be able to answer.
Who can apply, and the contract realities
Eligibility is broad: Australian citizens, permanent residents, non-residents and non-citizens, subject to the funder's criteria and FIRB where applicable. Bad credit is assessed case by case depending on the loan-to-value ratio and the type of listing, and the company asks applicants to be upfront about it. Once settled, the property is registered in your name with the contract stipulating that you hold it as custody agent for the funder, which has a beneficial interest; you may sell at any time provided the funder's balance, statutory and discharge fees are paid, you may rent the property out, and you carry all maintenance, repairs and taxes. The first payment generally falls one month after settlement.
The contract is a contract of exchange, not of partnership: Ijarah Finance does not share in any profit or loss when you sell. That is the correct ijarah position and the opposite of ICFAL's musharakah model, which does share. A reader who wants the financier to carry property risk should look at the co-operative rather than at Ijarah Finance. A reader who wants a single contract, one letter of offer and a counterparty regulated under the NCCP will find that here.
Verdict: who Ijarah Finance suits
Ijarah Finance is the establishment pick in Australian Islamic financing: the deepest product shelf, a licence lineage back to 2003 and, decisively, Shariah certification from a named external board with separate certificates for property and vehicle contracts. Choose it if you are self-employed and need low doc, if you want a fixed rental for up to 10 years without break costs, if you are buying a business vehicle or equipment through an ABN, or if you are a non-resident buyer that other providers will not consider. Look elsewhere if you are an employee who needs a car, if you want published pricing before you apply, if an offset account matters to you under a fixed rate, or if you want an Islamic institution rather than a conventional funder standing behind the contract. If you are undecided between Ijarah Finance and a competitor, the provider matching tool will narrow it by your deposit, income type and property, and our Islamic home finance brokers guide explains what a broker can and cannot add. Facts checked against ijarahfinance.com.au on 29 September 2026.
Frequently asked questions
Is Ijarah Finance a bank?
No. Ijarah Finance is a finance facilitator and mortgage manager trading under Australian Credit Licence 387688, owned by Mortgage Providers Pty Ltd, which has traded since 2003. It arranges rental-based contracts funded by Australian wholesale funders, finance houses, banks, non-bank lenders and private equity firms, and says it does not pay interest to those funders.
How much deposit does Ijarah Finance require?
The published minimums are 5% for residential property, 10% for joint land and construction, 10% for low doc residential, 20% for vacant land only, and 25% for rural property, commercial property and commercial low doc. Each is expressed as deposit plus costs such as stamp duty. A larger deposit can earn a better rental rate, according to the company's FAQ.
Who certifies Ijarah Finance as Shariah compliant?
FSAC, the Financial Shariah Advisory and Consultancy, an independent firm based in Singapore. Five advisors are named on the company's Shariah board page. Separate certificates are published for the property contracts and for the vehicle and equipment finance product. The company chose a Singaporean board because, it says, no Australian firm specialises in certifying financial contracts.
Does Ijarah Finance publish its rates?
No. Its FAQ says funders set the rental rate, that variable rentals generally move with the RBA cash rate, and that a larger deposit improves the rate. The Thabet product fixes the rental for 2 to 10 years with no break cost. To learn the price you must request a written quote or apply.
Can an employee get a car through Ijarah Finance?
Not under the published vehicle product, which requires a trading ABN held for at least one year and business use. The FAQ says a consumer finance product was being planned, and the page still carries that wording on 29 September 2026. Employees should ask whether it has launched or use Hejaz or ICFAL, both of which publish employee eligibility.
Compare providers in your state
See side-by-side comparisons of Shariah-compliant products, or let our matcher recommend the best options for your situation.
Can I pay out Ijarah Finance early?
Yes. You may purchase the property or asset outright at any time by paying the funder's outstanding balance plus statutory and discharge fees, and under the Thabet fixed product there is no break cost even during the fixed term. Extra payment limits on variable contracts vary by contract and are confirmed case by case.
