Islamic home finance in Canberra and the ACT

At a glance

• The ACT Revenue Office collects conveyance duty (stamp duty) on property purchases in the ACT.
• The ACT's main help for home buyers is the Home Buyer Concession Scheme, which can reduce or remove conveyance duty.
• Investors should know that ACT land tax applies to residential property that isn't your principal place of residence, such as a rental.
• New to Islamic finance? See how Islamic home finance works.

Can you get a halal mortgage in Canberra?

Yes. What people in Canberra often search for as a "halal mortgage" is, with us, Ijaar home finance: Ijarah, a lease that ends in ownership, with no interest. It can be used for a home to live in or an investment property in the ACT, and every application is assessed against credit criteria.

What should you know when buying a home in the ACT?

• Conveyance duty.Conveyance duty is the ACT's name for stamp duty. You'll generally owe it on any ACT purchase, from a home or a block of land to a commercial building. The ACT Revenue Office has a calculator and a list of exemptions.
• Ongoing property charges. Owners pay rates, and land tax applies to residential property that isn't your principal place of residence, such as a rented or vacant property. Foreign persons who pay land tax must also pay a foreign ownership surcharge.
• Other duty schemes. The ACT Revenue Office lists other home buyer schemes, including off-the-plan unit exemptions and pensioner and disability concessions.
• Consumer help and titles.Access Canberra handles fair trading and consumer rights, and offers searches of the ACT Land Titles Register.

What help is there for first home buyers in the ACT?

The ACT works differently from the states. The ACT Revenue Office says First Home Owner Grant payments have stopped in the ACT and the grant was replaced by the Home Buyer Concession Scheme.

• Home Buyer Concession Scheme: eligible buyers may pay less conveyance duty, or none, when they buy a home or residential land. The ACT Revenue Office has an online eligibility checker.
• Deferred duty: buyers who qualify under an ACT concession scheme may have the option of paying their remaining conveyance duty later rather than at purchase.

Your solicitor or conveyancer can help you check whether you're eligible and how to claim. Where a First Home Owner Grant is available, it can be applied for as part of your finance application on selected Ijaar home finance.

How does Ijaar home finance work?

1. The financier appoints you as its agent (wakeel, under a Wakalah agency agreement) to buy the property on its behalf.
2. From settlement, you're the registered owner on the title, and the financier holds a registered mortgage and a beneficial interest (an ownership share).
3. You pay rental for the use of the financier's share, with Principal and Rental, or Rental Only for a limited period.
4. Once all payments are made, the ownership share passes to you.

Who can apply in the ACT?

Individuals, companies and trusts can apply if they're 18 years and over and Australian or New Zealand citizens or Australian permanent residents. On selected Ijaar home finance, some temporary visa holders living in Australia, and some Australians, New Zealanders and Australian visa holders living overseas, may also apply. We don't offer finance to non-residents.

How do you get Islamic home finance in Canberra, step by step?

1. Talk to a broker about your plans. If you don't have a broker, contact us and we can refer you to an accredited broker.
2. Use the ACT Revenue Office eligibility checker to see whether the Home Buyer Concession Scheme may apply.
3. Your broker lodges your application, and the financier assesses it against credit criteria.
4. Your solicitor or conveyancer handles the contract, duty and settlement.

How can Riyadh Financial Services help in the ACT?

Riyadh Financial Services arranges Shariah-compliant property finance through accredited mortgage brokers, who must act in your best interests under Australian credit law (the best interests duty). Accredited brokers work across the ACT, in person or online. If you don't have a broker, contact us and we can refer you to an accredited broker.

• Ijaar home finance for a home, an investment property or a refinance.
• Islamic commercial finance for individuals, companies and trusts, with commercial purchases considered by exception.

Our product structures are reviewed by our independent Shariah adviser. Ask us for the current Shariah certificate and what it covers. We don't give religious rulings.

Keep reading:Ijaar home finance · Islamic commercial property finance · Is Islamic home finance more expensive?

Islamic home finance in other states:New South Wales · Victoria · Queensland · Western Australia · South Australia · Tasmania · All state guides