Last updated 6 November 2026 · Reviewed by Riyadh Financial Services Compliance
At a glance
- Switching is a refinance: the financier pays out your current home loan at settlement, and you stay the registered owner of your home.
- A streamlined refinance is a simpler path for eligible customers with established finance and a good payment record. It's still assessed.
- Check what it costs to leave your current lender before you switch. Our guide to refinancing costs walks you through it.
- An accredited broker has a best interests duty and can tell you whether a streamlined refinance may be available to you.
What changes when you switch from a home loan to Islamic finance?
The property and your ownership stay the same, and for home finance covered by the National Credit Code, the same consumer protections apply. What changes is the contract and how your payments are worked out. Here's a general comparison.
| Conventional home loan | Our Ijaar home finance | |
|---|---|---|
| The contract | Money lent to you, with interest charged on it | Ijarah Muntahia Bittamleek: a lease that ends in ownership |
| What you pay | Interest on the amount borrowed, plus principal | Rental on the financier's share, plus principal if you choose Principal and Rental |
| Payment types | Principal and interest, or interest only | Principal and Rental, or Rental Only for a limited period |
| The rate | An interest rate, variable or fixed | A rental rate, variable or fixed |
| Who's on the title | You, with the lender's mortgage | You, with the financier's registered mortgage and beneficial interest (an ownership share) |
| Insurance | Conventional property insurance | Conventional property insurance is still required |
| Your protections | Australian credit law, hardship help and free external complaints (AFCA) | The same protections apply to regulated home finance |
When all payments are made, the mortgage is discharged and the financier's ownership share passes to you. Read how Islamic home finance works for more.
What does a streamlined refinance mean?
A streamlined refinance is a refinance with a simpler assessment, designed for people who've held their current finance for a while and kept up their payments. It's available on selected Ijaar home finance, for eligible customers.
Streamlined doesn't mean unassessed. Responsible lending obligations still apply: your broker will assess your situation, and your application is assessed against credit criteria. Eligibility criteria apply, and your broker can tell you whether a streamlined refinance may be available for your finance and what you'll need to provide.
Commercial property refinances go through a streamlined refinance on our Islamic commercial finance, for eligible individuals, companies and trusts.
Is a streamlined refinance right for you?
It may suit you if:
- your current home loan is established and your payments are up to date;
- you mainly want to move to finance that's structured to avoid riba, without changing much else;
- the switch leaves you better off once the costs are counted.
Your broker may suggest a standard refinance instead if:
- you don't meet the eligibility criteria for the streamlined path;
- you want to release more equity than a streamlined refinance allows. Limits apply, and our equity release guide explains how it works;
- your circumstances have changed and a full assessment suits your situation better.
Either way, your new finance uses the same Ijarah structure.
What about the costs of switching?
Switching isn't free. You may pay a discharge fee and break costs to leave your current lender, government registration fees, and fees to set up your new finance. Our guide to the costs of refinancing to Islamic home finance explains each one and how to work out whether the switch is worth it. Islamic finance isn't automatically cheaper or dearer: read is Islamic home finance more expensive? to see what drives the cost.
What are the pros and cons of switching?
Possible pros:
- Your finance is structured to avoid riba. 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.
- You stay the registered owner of your home.
- For eligible customers, a streamlined refinance can make the process simpler.
- You get the same features as on any selected Ijaar home finance, including after a streamlined refinance: a Cash Management Account, a Visa debit card and, on a variable rental rate, redraw.
Possible cons:
- Switching costs, such as discharge fees and break costs on a fixed rate, can be significant.
- On a standard refinance, the rental rate and fees may not be lower than what you pay now, so compare the total cost.
- A streamlined refinance isn't available to everyone, and equity release limits apply.
- Your application is still assessed, so approval isn't certain.
How do you switch, step by step?
- Talk to a broker. Share your goals, your current home loan and any fixed rate period. If you don't have a broker, contact us and we can refer you to an accredited broker.
- Check the costs. Ask your current lender for a payout figure and, if you're on a fixed rate, a written estimate of any break costs.
- Find out which path fits. Your broker checks whether a streamlined refinance may be available and tells you what you'll need to provide.
- The assessment. Your broker will assess your situation, and your application is assessed against credit criteria, usually with a valuation of the property.
- The offer. If your application is approved, you receive your Ijarah finance documents. Read them carefully and get independent advice if you're unsure.
- Settlement. You sign a discharge authority with your current lender, and at settlement the financier pays out your home loan. Your rental payments begin under your new finance.
How can Riyadh Financial Services help?
Riyadh Financial Services arranges Shariah-compliant property finance through accredited mortgage brokers. Brokers have a best interests duty under Australian credit law, and they work across Australia, in person or online. If you're switching, we can help with:
- refinancing a home or investment property to our Ijaar home finance;
- a streamlined refinance on selected Ijaar home finance, for eligible customers;
- refinancing commercial property with our Islamic commercial finance;
- switching while you live overseas, for some Australians and New Zealanders. See our guide for Australians and New Zealanders overseas;
- a referral to an accredited broker if you don't have one.
Existing SMSF finance can't be refinanced with us. Al-Mustaqbal SMSF finance is for the purchase of commercial property only.