Fatwa: # 45411
Category: Business Matters
Date: 1st September 2020


Home financing in Australia - What options can i consider?


Assalam o Alikum,

I am interested in asking types of financing which are considered halal ?

As i am currently looking to buy a house on finance as its very difficult to move houses as in Australia the trend is landlord kick the tenants after 2 years. 


Please help in this regards


In the Name of Allah, the Most Gracious, the Most Merciful.

As-salāmu ‘alaykum wa-rahmatullāhi wa-barakātuh.

Brother in Islam,

May Allah reward you for your search in acquiring Halal financing.

In principal, the shariah compliancy of a finance scheme is dependent on three factors.

1)    The concept

2)    The contract

3)    The implementation


1) The concept itself must be accepted in Shariah.

2) The contract must reflect the actual reality of the concept.

3) The implementation of the product claimed as Shariah Compliant according to the terms and conditions reflected in the contract. It is one thing to have a Shariah Compliant contract and it is another to enact the product according to the contract. If the product is not enacted according to the terms and conditions of the contract, the transaction cannot be claimed as Shariah Compliant.



While we may elaborate on the different modes of financing acceptable in shariah, the mere description will not be sufficient to determine the shariah compliancy of a mode of financing. If you require further information regarding a certain company, you may forward the details of that company along with the relevant contracts. We will advise accordingly.

And Allah Ta’āla Knows Best

Mirza-Zain Baig

Student - Darul Iftaa

Montréal, Québec, Canada

Checked and Approved by,

Mufti Ebrahim Desai.


05-01-1441| 26-08-2020

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