Last updated 14 November 2026 · Reviewed by Riyadh Financial Services Compliance
At a glance
- In Victoria, the State Revenue Office (SRO) collects land transfer (stamp) duty and runs the First Home Owner Grant.
- Foreign purchasers of residential property in Victoria may pay foreign purchaser additional duty.
- Our guide to how Islamic home finance works explains the structure.
What does Islamic finance in Melbourne look like?
Islamic finance avoids riba, so the return comes from a real asset instead. When people in Melbourne search for a "halal home loan", they're usually looking for finance like ours: Ijaar home finance, which is Ijarah, a lease that ends in ownership, with no interest. It can be used for a home or an investment property anywhere in Victoria.
What should you know when buying property in Victoria?
- Duty is a state charge. You pay land transfer duty, often called stamp duty, when you buy property in Victoria. The SRO explains how it works and has a calculator.
- Concessions depend on the buyer and the property. As well as first home buyer relief, the SRO lists concessions such as the principal place of residence concession and the off-the-plan concession. Your conveyancer can check which apply.
- Foreign purchasers may pay extra.Foreign purchaser additional duty can apply on top of land transfer duty when a foreign person, company or trust acquires residential property. The SRO explains who counts as a foreign purchaser, including the rules for New Zealand citizens.
- Know your rights as a buyer.Consumer Affairs Victoria has guidance for buyers, including on underquoting.
What help is there for first home buyers in Victoria?
The SRO runs two main programs:
- First home buyer duty exemption or concession: covers your first home, whether it's newly built or established, or a block of vacant land you'll build it on. It's only for individuals (companies and trusts can't use it) who are buying the property to live in, and at least one buyer needs Australian or New Zealand citizenship or permanent residency.
- First Home Owner Grant: a one-off payment for eligible people buying or building their first home in Victoria, as long as it's a new home they'll live in. According to the SRO, most applicants lodge through an approved agent (for example their bank or credit union), and every person who will be on the title has to apply.
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 in Victoria?
The financier appoints you as its agent (wakeel, under a Wakalah agency agreement) to buy the property on its behalf. You're the registered owner on the title from settlement, and the financier holds a registered mortgage and a beneficial interest (an ownership share), which passes to you when all payments are made.
You pay rental for the use of the financier's share, with Principal and Rental or, for a limited period, Rental Only. The rental rate can be variable, or fixed for a period on selected Ijaar home finance.
Can an SMSF buy commercial property in Victoria with Islamic finance?
Yes. Al-Mustaqbal SMSF finance helps self-managed super funds buy commercial property, using Diminishing Musharakah, a partnership in which the fund gradually buys out the financier's share. It's a limited recourse borrowing arrangement, and the SRO explains how duty can apply to these, so ask your solicitor. Neither Riyadh Financial Services nor brokers give SMSF advice. Speak to a licensed financial planner or an accountant licensed to give SMSF advice.
Who can apply?
Australian and New Zealand citizens and Australian permanent residents who are 18 years and over can apply, as individuals, companies or trusts. Selected Ijaar home finance also accepts some temporary visa holders living in Australia, and some Australians, New Zealanders and Australian visa holders living overseas. We don't offer finance to non-residents.
How do you get Islamic finance in Melbourne, step by step?
- 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.
- Your broker lodges your application, and the financier assesses it against credit criteria.
- Your conveyancer handles the contract, duty and settlement.
How can Riyadh Financial Services help in Victoria?
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 Victoria, in person or online. If you don't have a broker, contact us and we can refer you to an accredited broker.
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 welcome to seek your own scholar's view.
Keep reading:Ijaar home finance · Al-Mustaqbal SMSF finance · Is Islamic home finance more expensive?
Islamic home finance in other states:New South Wales · Queensland · Western Australia · South Australia · ACT · Tasmania · All state guides