MCCA MCCA Commercial Property Finance
Islamic Business Financing in Tasmania
Shariah-certified lease-to-own (Ijarah Muntahia Bittamleek) finance for commercial property purchase, refinance, debt consolidation and development - from $100,000 up to $50,000,000 at up to 75% LVR over terms up to 30 years, with weekly, fortnightly or monthly instalments and a redraw facility. Funded through the Shariah-certified MCCA Income Fund rather than conventional credit lines, from Australia's oldest Islamic finance provider (est. 1989, $3.6b originated). No rates or fees are published - pricing is entirely quote-driven.
MCCA's commercial finance is notable mostly for its ceiling: up to $50 million at 75% LVR over up to 30 years, which as published terms go makes it the largest-capacity Islamic property finance offer in Australia. It shares the residential product's strengths - a genuine named Shariah panel, Amanie international certification, funding sourced from the Shariah-certified Income Fund, and flexible payments with redraw - and its weaknesses, chiefly total pricing opacity. The published detail is thin: a paragraph of headline terms on the finance-products page, with everything else handled through MCCA's office. For Muslim business owners or investors buying commercial premises, it is one of very few structurally serious Islamic options at mid-market scale in Australia, and the only one we found advertising eight-figure capacity. Model the quoted rental facility fee against a conventional equivalent, confirm all fees in writing (valuation and processing fees are non-refundable), and note the funder does not share property risk under the Ijarah exchange contract.
Pros
- Exceptional published scale for Islamic finance in Australia: $100,000 up to $50,000,000
- Long 30-year maximum terms at up to 75% of property value, with redraw available
- Funded through the Shariah-certified MCCA Income Fund rather than conventional credit lines
- Covers purchase, refinancing, debt consolidation and development finance purposes
Cons
- No published rates, fees or indicative pricing - everything is quote-driven
- No profit-and-loss sharing: Ijarah is a contract of exchange, so the economics are fixed-return
- Little published product detail beyond headline terms; serious applicants must engage sales to learn eligibility and costs
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Product Details
Structure
ijara
Max Amount
$50,000,000 (minimum $100,000; up to 75% LVR)
Down Payment
25% (finance capped at 75% of property value)
Term Options
Up to 30 years, Weekly, fortnightly or monthly instalments
MCCA in Tasmania
MCCA's MCCA Commercial Property Finance is available for businesses in Tasmania, using a ijara structure. Commercial pricing in this market is quote-based; get complete written terms including every fee before committing. MCCA operates across Australia, so Tasmania residents have full access to this product.
Our Take on MCCA
MCCA is the institution the rest of Australian Islamic finance measures itself against - 36 years old, $3.6 billion originated, dual-licensed (credit and financial services), with the country's most serious named Shariah governance: the Grand Mufti of Australia on its panel and Amanie Advisors certifying internationally. Its Ijarah-based finance products are genuinely featureful (90% LVR, offset and redraw, no early-exit penalties, no monthly fees) and its Income Fund gives Muslims a regulated, monthly-paying alternative to interest-bearing deposits that most markets would envy. The honest critique is transparency: MCCA publishes no rates for any finance product, its valuation and processing fees are undisclosed and non-refundable, its Shariah advisors have approved conventional LMI on necessity grounds, and the freshest compliance certificate on display is five years old. It is also fixed-return by design - Ijarah is an exchange contract, so MCCA does not share property risk the way ICFAL's Musharakah does. For most Australian Muslims seeking established, full-service Islamic finance, MCCA is the default starting point; purists will prefer ICFAL's risk-sharing, and rate-shoppers must extract a written quote to compare.
How MCCA Works
Apply and get assessed
Apply online with a 10% minimum contribution from at least three months of savings (or property equity). MCCA commits to 3-business-day processing at each stage and issues a conditional letter of funding approval, generally valid 90 days.
Find the property as MCCA's agent
Under the wakala arrangement you identify the property as agent of the funder, who acquires it. You undertake to lease it to own; conventional LMI applies above 80% LVR (Shariah-advisor approved as an industry necessity).
Occupy under lease and pay rent
After settlement you make weekly, fortnightly or monthly payments treated as lease rental, with no ongoing fees, unlimited extra payments, and offset/redraw options depending on the product.
Own outright - early or at term
Buy out the funder's outstanding amount at any time with no early-termination fee, or complete the full term - either way, title transfers to you by promissory gift (hiba).
Financing Structure
All MCCA finance uses Ijarah Muntahia Bittamleek - a lease ending in ownership. You are appointed the funder's agent (wakeel) to identify the property; the funder acquires it; you occupy it under a lease, making payments treated as rent rather than interest; and title transfers to you at the end of the term (or on penalty-free early buyout) via promissory gift (hiba). Title is registered in your name from settlement on the Shariah understanding that you hold it as the funder's agent during the term. Because Ijarah is a contract of exchange rather than participation, MCCA does not share in gains or losses when you sell - its return is the agreed rental facility fee, which may be variable. The investment funds mirror the model from the other side: the Income Fund pools investor money into these Shariah-compliant mortgage facilities and pays out the rental income monthly, while the Property Fund holds direct property in investor-approved sub-schemes.
In-Depth Analysis
MCCA has been the centre of gravity in Australian Islamic finance since 1989. The numbers it publishes (as of 30 June 2025) are unmatched locally: $3.6 billion in mortgages originated, $1.36 billion in finance and mortgages under management, and 8,782 households and businesses financed. It operates from a Melbourne head office in Coburg (serving all states except NSW and ACT) and a Sydney office in Lakemba (NSW and ACT), under two licences that matter: MCCA Ltd holds Australian Credit Licence 388808 for financing, and MCCA Asset Management Limited holds AFSL 291356 for its investment schemes. That dual regulated structure - credit provider plus fund manager - is what lets it run both sides of an Islamic finance ecosystem: financing homes from one arm and giving Muslim savers a halal income product from the other.
The finance products are all built on Ijarah Muntahia Bittamleek, a lease-to-own arrangement in which the client acts as the funder's agent (wakeel) to identify the property, occupies it under a lease making rental payments, and receives title at the end via promissory gift (hiba) - with early buyout available at any time without penalty. Residential finance runs from $50,000 to $2,000,000 at up to 90% LVR over 30 years, with a 10% minimum contribution from at least three months of savings or equity; commercial finance runs $100,000 to $50,000,000 at 75% LVR; and a corporate-trustee-only SMSF product finances residential investment property to $5M (80% LVR) and commercial to $10M (75% LVR). Features are unusually retail-grade for Islamic finance: offset accounts, redraw, VISA debit cards, unlimited extra payments, no ongoing fees. What is entirely absent is pricing: MCCA publishes no rate for any product, quoting individually by phone, and its FAQ discloses that valuation and processing fees are non-refundable even if the application fails - without stating their amounts.
The investment arm is where MCCA is most institutionally distinctive. The MCCA Income Fund (ARSN 138726931), offered since 2009, is Australia's first Shariah-compliant registered retail mortgage fund: it pools investor money into Shariah-compliant finance contracts secured by registered first mortgages, distributes net income monthly, and publishes five years of audited performance - 4.28% in FY25, 4.47% in FY24, 3.78% in FY23 against the Bloomberg AusBond Bank Bill benchmark - with $97.5M under management, a $1,000 minimum, no entry/exit fees, and Big-4 audits every six months. The fund has also lent $15M+ to build more than 60 mosques and community centres. The companion MCCA Property Fund takes a different approach: ASIC-registered but non-pooled, it presents investors specific single-property sub-schemes (development or rental) for individual approval, typically at $50,000 minimums - with one completed sub-fund having returned 18.83% total (11.36% p.a. over 2016–18). Both funds carry real risk disclosure via PDS and TMD documents.
Shariah governance is MCCA's strongest card and also where its housekeeping shows. The panel is named and heavyweight: Dr Ibrahim Abu Muhammad (Grand Mufti of Australia), Sheikh Wissam Zaatiti (since 2009), Dr Shabbir Ahmed (since 2014) and Almir Colan (since 2017, Director of the Australian Centre for Islamic Finance) domestically, with products additionally certified through Amanie Advisors by international scholars including Dr Mohamed Ali Elgari. Fatwas for the Income Fund and the Amlak, Tamleek and Bayti finance products are downloadable. But the annual Amanie compliance certificate displayed covers 1 July 2020 to 30 June 2021 - five years stale at our review - and the advisors' pragmatic approvals (conventional LMI above 80% LVR as an industry necessity; no profit-loss sharing since Ijarah is an exchange contract) are exactly the points where stricter Muslims diverge. MCCA is transparent about both positions in its FAQ, which is to its credit. The overall picture: maximum institutional credibility, moderate structural purity, and disclosure that lags behind its governance quality.
Shariah Compliance Details
- Named, verifiable oversight: MCCA's Shariah Advisor panel is published with biographies - Dr Ibrahim Abu Muhammad (Grand Mufti of Australia), Sheikh Wissam Zaatiti, Dr Shabbir Ahmed and Almir Colan - and products are additionally certified internationally through Amanie Advisors by scholars including Dr Mohamed Ali Elgari (King Abdul Aziz University) and Prof Dr Abdulaziz Al Qassar (Kuwait University). Downloadable fatwas exist for the Income Fund and the Amlak, Tamleek and Bayti products.
- Aging evidence: the annual Shariah compliance certificate displayed is issued by Amanie for 1 July 2020 – 30 June 2021. No more recent certificate appears on the site, so current-year certification could not be verified from public materials.
- Pragmatic rulings to understand before signing: the advisors have approved conventional Lenders Mortgage Insurance above 80% finance on the basis that it is mandatory industry practice, and MCCA confirms it neither shares profit nor loss on property sales because Ijarah and Murabaha are exchange contracts, not participation contracts. Both positions are disclosed openly in the FAQ; stricter buyers may prefer ICFAL's risk-sharing Musharakah.
How MCCA Compares
MCCA and ICFAL are Australia's two co-operative-rooted Islamic finance originals, and they occupy opposite poles. MCCA is the scale player: 90% LVR, $2M residential and $50M commercial capacity, offset/redraw features, dual ASIC/credit licensing, and ASIC-registered investment funds - but fixed-return Ijarah economics, quote-only pricing and conventional LMI. ICFAL is the purity player: genuine profit-and-loss-sharing Musharakah, strictly member-sourced interest-free funding and valuer-set (not rate-benchmarked) pricing - but a $700k cap, 20% deposits and a six-month waitlist. Against the newer commercial entrants, Hejaz offers a slicker, superannuation-inclusive wealth platform, and Ijarah Finance and Amanah compete on financing distribution; none match MCCA's institutional history, licence stack, or the depth of its named Shariah bench.
ICFAL's member-funded Diminishing Musharakah shares equity profit and loss and prices from independent valuations rather than rate benchmarks - structurally purer, but capped at $700,000 with 20% deposits and a 6-month waitlist where MCCA offers 90% LVR and $2M capacity on demand.
Hejaz is the modern full-stack competitor, spanning home finance, superannuation and investments with a digital-first experience; MCCA counters with 36 years of history, the Grand Mufti on its Shariah panel, and Australia's first registered Islamic retail mortgage fund.
Ijarah Finance competes in the same lease-to-own product family; MCCA differentiates on institutional depth - dual licensing, published fund performance, and named multi-scholar governance with international Amanie certification.
Amanah is a boutique Islamic home finance alternative; MCCA offers far broader capacity (to $50M commercial), SMSF products and two ASIC-registered investment funds alongside its home finance.
Bottom Line
MCCA is Australian Islamic finance's establishment choice: nobody else combines 36 years of operation, $3.6b originated, dual credit-and-funds licensing, ASIC-registered halal investment funds, and a named Shariah panel headlined by the Grand Mufti of Australia. Its products are feature-rich and its community reinvestment is real. Go in knowing the trade-offs - no published rates, undisclosed non-refundable fees, conventional LMI above 80% LVR, fixed-return economics, and a compliance certificate that needs refreshing - and get every number in writing before you sign.
Read full MCCA reviewShariah Compliance & Oversight
Same oversight as MCCA's residential products: an independent Shariah Advisor panel of four named Australian scholars (Dr Ibrahim Abu Muhammad - Grand Mufti of Australia, Sheikh Wissam Zaatiti, Dr Shabbir Ahmed, Almir Colan) plus international certification through Amanie Advisors (Dr Mohamed Ali Elgari, Dr Muhammad Qattan, Dr Osama Al Dereai, Prof Dr Abdulaziz Al Qassar). Commercial finance is funded through the MCCA Income Fund, which has its own published fatwa from the independent advisory board.
2026-08-05
Why It's Halal
MCCA's commercial property finance uses the same Ijarah Muntahia Bittamleek (lease-to-own) construct as its flagship residential product: the funder acquires the commercial property, the client occupies and uses it under a lease with payments treated as rent, and ownership transfers by promissory gift (hiba) at the end of the term or on early buyout. Commercial deals are funded through the MCCA Income Fund - a registered, Shariah-certified retail mortgage fund with its own published fatwa - so the money side of the transaction is also structured Islamically, from investor capital rather than an interest-based warehouse line. The product is certified by MCCA's named Shariah panel (including the Grand Mufti of Australia) with international sign-off via Amanie Advisors. Buyers should weigh the same caveats that apply across MCCA's finance range: no pricing is published (quotes only), MCCA as lessor does not share in gains or losses on the property since Ijarah is a contract of exchange rather than participation, and the most recent Amanie compliance certificate displayed on the site covers FY2020-21. For businesses, the practical draw is scale - finance to $50,000,000 - which no other Australian Islamic provider publicly advertises at that level.
Regional Availability
MCCA serves all of Australia
✓ Available nationwide including Tasmania
Apply Now: MCCA
Visit MCCA's website to get current terms, check eligibility for Tasmania, and get started today.
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NationwideFrequently Asked Questions
What is MCCA MCCA Commercial Property Finance?
Why is MCCA MCCA Commercial Property Finance considered halal?
Is MCCA MCCA Commercial Property Finance available in Tasmania?
What Shariah oversight does MCCA have?
What financing structure does MCCA MCCA Commercial Property Finance use?
How do I apply for MCCA MCCA Commercial Property Finance in Tasmania?
Can Tasmanians access Islamic finance products?
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Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.