For brokers: how to offer Islamic home finance to your clients

Last updated 6 November 2026 · Reviewed by Riyadh Financial Services Compliance

Why offer Islamic home finance to your clients?

Some clients want property finance that avoids interest (riba) because of their faith or values. Under your best interests duty, you need to understand your client's objectives. If a client prefers Shariah-compliant finance, that can be one of them, and you can record it in your needs analysis.

Riyadh Financial Services works through accredited mortgage brokers because brokers must act in their clients' best interests and work across Australia, so clients can get help close to home or online.

What can you offer your clients?

• Ijaar home finance: buy a home or investment property, refinance, release equity, or build, including HomePay for house and land.
• Islamic commercial finance: selected Ijaar finance for commercial property, for individuals, companies and trusts: purchases by exception, and refinance through a streamlined refinance.
• Al-Mustaqbal SMSF finance: for a self-managed super fund buying commercial property.

Scenarios we can consider include self-employed clients, temporary residents, and Australians and New Zealanders living overseas, on selected Ijaar home finance, and companies and trusts for commercial property. Bridging finance isn't offered.

What does accreditation involve?

Accreditation with Riyadh Financial Services involves:

• Your application. You complete the partner enquiry form at riyadhfs.com.au/onboarding-partners and tell us about your business.
• Our review. We review your application and the documents we need from you: a police check, your credit report and your Certificate IV or Diploma in finance and mortgage broking. We also check the ASIC register.
• The Shariah compliance module. You complete the Shariah compliance module and its assessment before full accreditation, even if you're already accredited with 360 MMS. It explains how Ijarah and Diminishing Musharakah work, so you can explain them to clients with confidence.

Once you're accredited, you get access to Riyadh FS Connect and the broker resources.

How do you apply, step by step?

1. Apply. Complete the partner enquiry form at riyadhfs.com.au/onboarding-partners.
2. Review. We review your application and confirm what we need from you.
3. Shariah training. Complete the Shariah compliance module and assessment, which is required before full accreditation.
4. Start lodging. Once you're fully accredited, log in to Riyadh FS Connect, read the product guides and talk to Partner Assist about your first scenario.

What is Riyadh FS Connect?

Riyadh FS Connect is our broker portal at partner.riyadhfs.au. Accredited partners use it for:

• resources, rate sheets and product guides
• training videos and client brochures
• the lodgement checklist for each product
• tracking deals in progress.

Rental rates and dividend rates are only on the current rate sheets in Riyadh FS Connect. They aren't on this website.

What scenario support is there before lodgement?

Partner Assist helps accredited partners with scenarios, lodgement and post-settlement questions. Talk a scenario through before you lodge. Call Partner Assist on +61 2 7202 7900 or send a message through Riyadh FS Connect.

A scenario discussion is guidance, not an approval. Your client's application is assessed against credit criteria, and the financier makes the final decision.

How do you explain Ijarah to a client in plain words?

Our Ijaar home finance uses Ijarah Muntahia Bittamleek, a lease that ends in ownership. You can explain it to a client in plain words like this:

1. The financier appoints your client as its agent. Your client acts as its agent (wakeel, under a Wakalah agency agreement) to buy the property on its behalf.
2. You're the registered owner. You're the registered owner from settlement. The financier holds a registered mortgage and a beneficial interest (an ownership share) in the property.
3. You pay rental. Your regular payments are either Principal and Rental, which also reduce the amount financed, or Rental Only for a period.
4. The financier's share passes to you. When all payments are made, the mortgage is discharged and the financier's ownership share passes to you.
5. Why it avoids riba. The financier earns rent on a real asset, not interest on money lent.

Under Australian law, the binding documents are a credit contract and a registered mortgage. Where the National Credit Code applies, consumer protections such as hardship and complaint rights apply as they would for any home finance. Our product structures are reviewed by our Shariah adviser, and our Shariah certificate is reviewed regularly. Ask us for a copy and what it covers. Our guide to how Islamic home finance works is written for clients, and you can share it.

How does Ijaar home finance compare with a conventional mortgage?

When you talk about our products, say "finance", "the financier", "rental rate", "Principal and Rental", "Rental Only" and "payments". For Al-Mustaqbal SMSF finance, say "dividend rate", "Principal and Dividend" and "Dividend Only".

How is Al-Mustaqbal SMSF finance different?

Al-Mustaqbal SMSF finance uses Diminishing Musharakah, a partnership that reduces over time. The fund and the financier both contribute to the property, and the fund buys out the financier's contribution over time. The fund pays a dividend on the financier's remaining contribution.

It's for a fund with a corporate trustee buying commercial property, and every fund member gives a personal guarantee. A residential property qualifies only if it's business real property, and existing SMSF finance can't be switched to it. Only a licensed financial planner or an accountant licensed to give SMSF advice can advise your client on whether it suits their fund, and fund members get independent legal advice before settlement, unless it's waived.

What should you never say to a client?

• Never give a personal religious ruling. You explain how the structure works and point to our Shariah adviser's review. Clients are welcome to seek their own scholar's view.
• Never promise an outcome. Don't promise approval, a rental rate or a timeframe.
• Use our terms, not conventional borrowing terms. Use the words listed under the comparison table above.
• Don't suggest Islamic insurance is provided. Conventional insurance is required on the property.

How are brokers paid?

Commission terms are set out in your accreditation agreement. Disclose commissions to your client as your credit obligations require.

What are the pros and cons for brokers?

Possible pros:

• Another option to compare for clients who want Shariah-compliant finance, as part of your best interests duty.
• A Shariah compliance module that helps you explain the structures clearly, whether or not you're Muslim.
• Partner Assist for scenarios before you lodge.
• Product guides, checklists and client brochures in Riyadh FS Connect.

Possible cons:

• The Shariah compliance module is extra training before full accreditation.
• The terms and the documents differ from conventional home finance, so there's another set of words and policies to learn.
• Not every client or scenario fits, for example bridging finance isn't offered.
• A scenario discussion is guidance, not an approval: the financier makes the final decision.

How can Riyadh Financial Services help?

Riyadh Financial Services works with accredited mortgage brokers to offer Shariah-compliant property finance. For brokers, we offer:

• Accreditation and Shariah training: a Shariah compliance module completed before full accreditation.
• Scenario support: Partner Assist helps with scenarios, lodgement and post-settlement questions.
• The broker portal: Riyadh FS Connect at partner.riyadhfs.au for resources, rate sheets, guides and deal tracking.
• Broker resources: product guides, training videos, lodgement checklists and client brochures.
• Client guides: plain-English guides on this website that you can share with clients.