Islamic home finance in Sydney and NSW

At a glance

• Revenue NSW collects transfer duty (stamp duty) and runs the NSW first home buyer programs.
• Foreign persons buying residential property in NSW may pay surcharge purchaser duty on top of transfer duty.
• New to Islamic finance? Start with how Islamic home finance works.

Can you get an Islamic home loan in Sydney?

Yes. What many people in Sydney search for as an "Islamic home loan" is, with us, Ijaar home finance: Ijarah, a lease that ends in ownership, with no interest. It's available across Greater Sydney and regional NSW, and every application is assessed against credit criteria.

What should you know when buying a home in NSW?

Some rules depend on the state you buy in, not on the type of finance. In NSW:

• Revenue NSW collects the duty. When you buy a property, you generally pay transfer duty, also called stamp duty. Revenue NSW publishes a calculator and the exemptions and concessions.
• Foreign buyers may pay extra. If you're a foreign person, whether an individual, a company or a trust, buying residential-related property in NSW can attract surcharge purchaser duty. Revenue NSW sets out how it treats New Zealand citizens, permanent residents and people on other visas.
• Watch for payment scams. Revenue NSW warns of duty payment scams, so check any payment request with your solicitor or conveyancer first.
• Know who protects buyers.NSW Fair Trading is the state's consumer protection regulator, with guidance on housing, property and strata.

What help is there for first home buyers in NSW?

Revenue NSW runs the two main NSW Government programs:

• First Home Buyers Assistance Scheme: eligible first home buyers may get a full exemption from transfer duty, or a reduced rate, on a new or existing home or on vacant land. Only individuals can use it (companies and trusts can't). At least one of the buyers needs Australian citizenship or permanent residency, and you'll need to live in the home.
• First Home Owner (New Homes) Grant: for a first home that is newly built, bought off the plan or substantially renovated, not an established home. According to Revenue NSW, you may be able to receive it alongside a duty exemption or concession.

The NSW Government's Home Buyer Assistance Finder gives an indication of whether you can apply for either program. If you're eligible, the First Home Owner Grant 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. You're the registered owner on the title from settlement. 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, at a variable rental rate or, on selected Ijaar home finance, one fixed for a period. Principal and Rental also reduces the amount financed; Rental Only is available for a limited period.
4. When all payments are made, the financier's ownership share passes to you.

We don't publish rates on this website; an accredited broker can give you current rental rates.

Who can apply in NSW?

People 18 years and over who are Australian or New Zealand citizens or Australian permanent residents can apply, as can individuals, companies and trusts. On selected Ijaar home finance, some temporary visa holders living in Australia and some Australians, New Zealanders and Australian visa holders living overseas can also apply. We don't offer finance to non-residents, and foreign persons usually need foreign investment (FIRB) approval.

How do you get Islamic home finance in Sydney, 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. Your broker lodges your application, and the financier assesses it against credit criteria.
3. Your solicitor or conveyancer checks the contract, confirms the transfer duty and coordinates settlement.

How can Riyadh Financial Services help in NSW?

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 NSW, in person or online. If you don't have a broker, contact us and we can refer you to an accredited broker. Our office is at Level 1, 60 Martin Place, Sydney NSW 2000, and we help customers across Australia.

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, and you're always welcome to seek your own scholar's view.

Keep reading:Ijaar home finance · Islamic home finance for first home buyers · Refinance to Islamic home finance

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