Superannuation is compulsory in Australia, property is the national investment religion, and the standard way to combine them, a limited-recourse borrowing arrangement, is an interest-bearing loan to a bare trust. For observant Muslim trustees that is straightforwardly off the table, which made Shariah-compliant SMSF property finance one of the most requested and least supplied products in the market. Supply now exists. This guide compares every published option, with the caveats each one earns. Verified August 5, 2026.
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MCCA: the most documented offer
MCCA's SMSF product uses the same certified Ijarah Muntahia Bittamleek as its flagship: residential investment property from $100,000 to $5,000,000 at up to 80% LVR, commercial to $10,000,000 at 75%, terms with rental rates available fixed only in 1 to 5 year windows, refinancing of existing SMSF finance available, no redraw and no split contracts. The hard eligibility rule: corporate-trustee funds only. Oversight matches the flagship (four named Australian scholars including the Grand Mufti of Australia, plus Amanie Advisors), which for retirement money is the documentation level you want. No rates are published, and MCCA itself stresses that trustees need independent financial, legal and tax advice.
Hejaz: Musharakah with published limits
Hejaz names its structure on the page: Musharakah, a joint venture in which the investor and financier share ownership of the investment on a pre-agreed ratio, avoiding an interest-bearing loan entirely. Published limits: finance to $2,500,000, maximum LVR 85-90% residential and 80% commercial, under the group's dual-layer governance (named three-scholar board plus Minarah Consulting). Unpublished: pricing and the profit-sharing ratios, which for a partnership structure are the economics. Get the full Musharakah agreement before committing super assets.
Ijarah Finance: bare-trust Ijarah, dated certificate
Ijarah Finance's SMSF product, launched September 2024, has a bare trust purchase residential, commercial or industrial property and lease it to the fund at up to 80% LVR, with conventional-to-Islamic refinancing of existing SMSF loans explicitly supported and extra advance payments allowed (no redraw or cash-out). Our flag: the published FSAC certificate covering its residential family is dated December 2023 and predates this product; no SMSF-specific certificate is posted. Request current certification scope in writing before proceeding.
The Al-Mustaqbal white-label: one product, two brands, one contradiction
Here is the market's oddest corner. Meezan Wealth and Riyadh FS both sell an SMSF product named Al-Mustaqbal, and both are credit representatives of the same licensee, Kuone Pty Ltd (ACL 504193), which points to a shared white-label platform. Meezan publishes concrete terms: $250,000 to $2,000,000 against residential security, LVR to 80%, terms to 30 years, fixed rental options to 5 years priced on application, a risk fee (amount unlisted), Musharakah mechanics where the fund pays principal plus a profit-share dividend through a bare trust, and a recommendation to keep at least $150,000 in liquid assets. Riyadh publishes the structure in even more detail (trustee contributes the deposit, financier funds the balance and earns a variable dividend on its shrinking share, up to 90% finance-to-value residential) but states SMSF refinance is not available, while Meezan lists refinance and equity cash-out among its purposes. The same-platform product contradicting itself across distributors is exactly the kind of thing to resolve in writing before you rely on either claim. Meezan also advertises an offset account and redraw on an Islamic SMSF product with no published explanation of the Shariah treatment; Riyadh's equivalent cash management account explicitly disclaims interest-offset mechanics. Ask the question.
The rest of the field
Crestmount Money markets SMSF Musharaka co-ownership at up to 90% of property value across residential, commercial, industrial and retail, which would be the most aggressive leverage in the market (Islamic or conventional) if confirmed; it sits unreconciled with the 65% LVR cap in Crestmount's own disclaimer, so get it in writing. Afiyah brokers Murabaha or Ijarah SMSF structures with ADL Advisory certification gating its recommendations and a refreshingly cautious posture (strict rules apply is its own front-loaded warning); funders are unnamed. Baraqah markets Al Mustaqbal-style SMSF financing at up to 80% LVR, its own phrasing conceding a branding wrapper rather than a documented in-house product, with no scholar or certificate published anywhere on its site.
The trustee's checklist
- Structure documents first: for Musharakah products, the buyout schedule and default clauses decide whether it is genuine shared risk or a repackaged loan. Get the full deed set reviewed independently.
- Certification in writing: MCCA and Hejaz publish named governance; Ijarah Finance's certificate predates its SMSF product; Riyadh's certification claim names nobody. The gaps are material at retirement-savings stakes.
- Corporate trustee: MCCA finances corporate-trustee funds only, and bare-trust arrangements across the market assume standard ATO-compliant architecture.
- Liquidity: Meezan's published $150,000 liquid-balance recommendation is sensible market-wide; property plus finance obligations inside a fund needs cash headroom.
- Compliance interplay: sole-purpose test, arm's-length rental, no developments or vacant land (per Meezan's published rules), and independent financial, legal and tax advice, which MCCA explicitly directs trustees to obtain.
One more alternative deserves naming: not financing at all. MCCA's Income Fund (established 2009, $97.5 million under management, FY25 return of 4.28% against a 4.30% benchmark, $1,000 minimum) accepts SMSF money and gives Shariah-compliant property-linked exposure without leverage, trustee complexity or a decade of dividend obligations. For some funds that is the wiser risk shape. Compare all routes on our home financing hub or get matched.
Frequently asked questions
Can my SMSF buy property without an interest-bearing loan?
Yes. MCCA (Ijarah, to $5,000,000 residential at 80% LVR), Hejaz (Musharakah, to $2,500,000 at 85-90% LVR), Ijarah Finance (bare-trust Ijarah at 80% LVR) and the Al-Mustaqbal product at Meezan Wealth and Riyadh FS all replace the loan with lease or partnership structures. Terms and documentation quality vary widely.
Which Islamic SMSF product has the best oversight?
MCCA on published evidence: a named Australian scholar panel including the Grand Mufti of Australia plus Amanie Advisors certification, the same stack as its flagship products. Hejaz's named board plus external supervisor is also substantial. Several competitors claim certification without naming anyone; treat those as unverified.
What LVR can an Islamic SMSF product reach?
Published claims run from 75-80% (MCCA, Ijarah Finance, Meezan) through 85-90% (Hejaz residential) to Crestmount's 90% and Riyadh's 90% finance-to-value marketing claims. The higher numbers exceed typical SMSF lending ceilings and lack PDS-grade documentation, so confirm in writing and remember that leverage inside super concentrates retirement risk.
Can I refinance an existing conventional SMSF loan to halal?
Ijarah Finance supports it explicitly, and MCCA lists refinancing existing SMSF finance among its use cases. The Al-Mustaqbal distributors contradict each other on this exact point (Meezan says yes, Riyadh says no), so get a written answer for your fund's situation.
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What does Islamic SMSF finance cost?
No provider publishes rates. MCCA's rental facility rate comes fixed only in 1-5 year windows and resets after; Meezan publishes a risk fee without an amount and fixed rental options priced on application; the rest is quote-only. Trustees should price quotes against two benchmarks: conventional SMSF lending for the same property, and simply investing the fund unleveraged (MCCA's Income Fund publishes a 4.28% FY25 return). If the halal leverage premium is large, the unleveraged path deserves serious consideration.