What happens if you miss a payment on Islamic home finance?

If you miss a payment, or think you might, contact us as early as possible. We'll work with you and your funder to look at your options, which may include a hardship arrangement. Missed payments can be recorded on your credit report and, if they continue, the financier can take further steps under your contract, so acting early gives you the most choice. Free, confidential help is also available from the National Debt Helpline on 1800 007 007.

Last updated 2 November 2026 · Reviewed by Riyadh Financial Services Compliance

What happens when a payment is missed?

• The payment becomes overdue. Your finance is behind (in arrears) until you catch up.
• We'll contact you. Our client service team will get in touch to let you know and to talk about how to catch up. If payments stay behind, the financier's collections team may also contact you.
• A late payment fee may apply. It covers the cost of managing the missed payment and is set out in your contract. Ask us if you're not sure what applies to you.
• Your credit report may be affected. Repayment history can be recorded on your credit report, which can affect future applications for finance.

How does a missed payment affect your rental and principal?

With Ijaar home finance, each payment covers rental on the financier's share of the property and, if you're on Principal and Rental, a principal amount that reduces that share.

If a payment is missed, the financier's share doesn't reduce as planned, and rental continues on that share until you catch up. With Al-Mustaqbal SMSF finance, the same applies to your fund's dividend and principal payments.

What if you can't catch up?

If you're having trouble making payments, or expect to, contact us as early as possible. Your circumstances can change through illness, losing your job, a relationship breakdown or other events.

• Ask about a hardship arrangement. Depending on your situation, options may include changing your payments for a period or changing the term of your finance.
• If your finance is regulated consumer credit, such as finance for a home to live in or a residential investment property, you can ask for a change to your payments because of financial hardship, and your request must be considered.
• Talk to a financial counsellor. The National Debt Helpline on 1800 007 007 offers free, confidential financial counselling.

What happens if payments stay behind?

If payments stay behind and no arrangement is agreed, the financier can take further steps under your contract and mortgage. You'll be told in writing before this happens and given a chance to fix the problem.

As a last resort, the financier can take possession of the property and sell it. If you decide to sell the property yourself, the financier's remaining share is paid out from the sale and the mortgage is discharged.

Contacting us early, before this stage, gives you the most options.

Does Islamic finance change how missed payments are handled?

Our finance is Shariah-compliant and also regulated under Australian law. Hardship and complaint protections apply in the same way as for any other home finance.

Our products are reviewed by an independent Shariah adviser. Any late payment fee covers the cost of managing the missed payment. If you have a question about how a fee or charge on your finance is treated, ask us.

How do you get help?

1. Contact us early. Call +61 2 7202 7900 or use our contact form. Tell us what has changed and what you can afford.
2. Talk to a financial counsellor through the National Debt Helpline on 1800 007 007 if you'd like free, independent help.
3. If you're not happy with our response, you can make a complaint. Making a complaint is free. Our Credit Guide explains how.
4. If your complaint isn't resolved, you can take it to the Australian Financial Complaints Authority (AFCA), which is free for consumers. Visit afca.org.au or call 1800 931 678.

General information only. It isn't financial, tax, legal or religious advice and doesn't consider your objectives, financial situation or needs. Fees, charges and credit criteria apply.