Islamic Investment in Property Through Your Super

Are you ready to invest in residential or commercial property through your Self-Managed Super Fund (SMSF)? Afiyah offers a Sharia-compliant pathway to financing your investment property, aligning your financial ambitions with your ethical values.


How Can Islamic Home Finance Help You?

Research shows that one in three Australian Muslims choose to keep significant cash savings at home instead of taking out a mortgage due to the lack of permissible financing options.

Since conventional financial products and services are most likely exposed to a lot of interest income, it creates a conflict with Islamic finance beliefs. This puts extra pressure on Muslims looking to purchase their first home as they are left with few options.

Challenges of Property Investment Financing

Investing in property through an SMSF can seem complex, especially when seeking financing that adheres to Islamic principles. From navigating Sharia-compliant investment options to understanding the intricacies of property financing, the process requires careful consideration. Afiyah simplifies this journey for you.

How Afiyah Facilitates Your Property Investment

Afiyah specialises in providing Islamic SMSF financing solutions for property investment. Whether you're considering residential or commercial property, our Sharia-compliant financing options are designed to align with your SMSF goals and religious beliefs.

Halal Property Investment with Afiyah

Our Islamic SMSF financing solutions for property investment are not just ethical but also tailored to meet diverse investment needs. We offer competitive rates and flexible terms for both residential and commercial property financing, ensuring your investments are compliant with Islamic financial principles.

The Islamic SMSF Finance Process

Our process is simple and transparent:


Begin by filling out our 'Apply Now' form or reaching out to us directly. This first step sets the foundation for your SMSF property investment journey.


If you're new to SMSFs or need guidance, we have partnered with SMSF experts who can assist in setting up and understanding your SMSF. They will provide the necessary insights and support to ensure your SMSF is structured effectively.


Have a conversation with our specialists about your property investment aspirations. We're here to listen, understand, and align our services with your objectives.


Benefit from an ethical and compliant approach to financing your property investment. With Afiyah, you can be confident that your investment aligns with both your financial goals and Islamic values.

FAQ: Islamic SMSF Property Financing

Our process is simple and transparent:

What is Islamic SMSF Property Financing?

Islamic SMSF Property Financing involves Sharia-compliant financing structures for investing in residential or commercial properties through your SMSF. It ensures that your property investments are in line with Islamic financial principles.

What Documentation is Required for SMSF Property Financing?

The documentation required for SMSF property financing varies based on individual circumstances and the type of application. At Afiyah, we guide you through this process in detail, ensuring you understand what's needed for your specific situation. Below is a high-level overview of the general documents required. For a comprehensive and personalised list, please contact us directly.

General Documentation for All Applications

  • SMSF Cash Management Account Statements: Required for the last six months, or two years for Industry Super Fund statements.
  • Audited SMSF Tax Returns and Financials: For the last two years (if applicable), with the TFN removed.
  • Accountant Letter: Confirming the annual ongoing cost for the SMSF.
  • Independent Legal Advice Guarantor Certificate: Required at the time of mortgage documentation.

For PAYG Members – Income Verification

  • Recent Payslips: The three most recent consecutive payslips, with the latest being less than 14 days old.
  • Bank Statements: The latest 5 months' statements showing regular salary credits from the employer.

For Self-Employed Members – Income Verification

  • Business/Company/Trust Taxation Returns and Financials: For the last two years, with TFNs removed.
  • Personal Taxation Returns & Tax Assessment Notices: For the last two years, with TFNs removed.
  • Business Activity Statements (BAS): For the most recent period, along with corresponding 6 months' business bank statements.

For New Purchase Applications

  • Rental Appraisal Letter: From a registered real estate agent.
  • Existing Super Fund Statement: If funds are to be rolled into the SMSF.
  • Signed Contract of Sale.

For Refinance Applications

  • Current Rates Notice: For all properties being refinanced.
  • Six Months SMSF Loan Statements: For the loan being refinanced.
  • Recent Rental Statement: Along with the corresponding bank statement showing account credits.
  • Signed Discharge Authority: For the outgoing bank/financial institution.

Is the contracts approved by the Shari'ah board?

The products offered have been reviewed and certified by FSAC (Financial Shariah Advisory and Consultancy).

FSAC is a Singapore-based Independent Shari’ah Consultancy Firm that specialises in Islamic Financial Contracts Certification for companies and entities all over the world.

Why an international board is used and not a local body?

Regrettably, we lack organisations in Australia that focus on the certification of financial contracts in the Islamic context. On the international level, though, numerous firms possess this specialisation.

While Australia is home to numerous scholars and Imams with profound knowledge of Islamic principles, there is a shortage of infrastructure to facilitate an authority dedicated to certifying financial contracts. This is particularly true for the highly specialised and complex field of finance.

Our choice to utilise FSAC was influenced by the striking parallels between Singapore’s and Australia’s credit and contract laws, as well as their taxation systems. The board's familiarity with Australian finance and credit procedures is extensive, as is their experience in this sector, especially in the context of advanced economies.

Grasping Islamic Finance and Conventional Finance, financial instruments, Australian taxation laws, Australian credit laws, property laws, and legal contract laws, among other things, is indeed a complex task.

There's a necessity for specialised firms, ones capable of aligning with these laws whilst staying true to the essence of Shariah compliance. They should possess a deep understanding of how to integrate these laws with Shariah principles, while also being conversant with the laws applicable in a Muslim minority country and exercising discretion when needed.

Hence, our board was particularly well-equipped to guide us as an organisation when it came to providing Islamic finance to our customers in Australia. They ensured that we remained within the ambit of both the letter and spirit of the law, while also staying true to the principles of Islamic finance.

Do we pay interest to our partners?

Riba is strictly prohibited in Islamic finance. We work on profit and loss sharing principles with our partners that eliminates riba. The profit our business generates is interest-free and distributed among the partners on strict sharia laws.

Is it necessary for the funder to be Shari'ah compliant?

To offer a sharia-compliant product or contract, the funder does not need to be an Islamic bank or Islamic finance entity. Rather, the transaction, finance contract, or agreement being issued must comply with Sharia.

Yes, they can depend upon the financial position and the regulatory position. However, the change in interest rate will depend upon the nature of Islamic finance products. For example in case of Ijarha, both fixed and varied interest rates can be used; however, the same should be mentioned in the agreement details and mutual consent of parties.

Various benchmarks like LIBOR are subject to criticism from various Islamic scholars. However, there is no harm in using these benchmarks unless they are being used for purpose of calculating profit margin only. Various international accounting and financial authorities have given the permissibility to use these benchmarks for purpose of calculating their margin.

The answer is simple; the nature of the Ijarha contract allows the owner to receive compensation when the asset is leased out. Both lessor and the lessee get benefits, the lessor gets the profit in the shape of rentals and the lessee doesn’t have to purchase as an asset, rather the lessee can utilize the usufruct for its business operations.

Benefits of Islamic SMSF Property Financing

  • Ethical investment: Ensures your property investments through SMSF comply with Islamic finance principles.
  • Versatile options: Tailored financing for residential and commercial properties.
  • Clear terms: Transparent fees and structures, defined upfront.
  • Control over investments: Manage your property investments while adhering to Islamic values.

Maximizing Your Islamic SMSF Property Financing

Evaluate Your Investment Strategy

Align with Retirement Goals: It's essential to choose property types that align with your SMSF goals, particularly focusing on how they fit into your long-term retirement strategy. This decision should not be made in isolation but in consultation with a financial adviser, ensuring that your property investment complements your overall retirement plan.

Consult Financial Advisers: Engage with financial experts who can provide insights into how different property investments can impact your retirement portfolio. They can help you assess the potential returns and risks associated with various property types.

Understand All Costs

Comprehend SMSF Expenses: Operating an SMSF can be costly. It's important to fully understand the costs involved in running and managing your SMSF, including setup fees, ongoing administration costs, and any legal or advisory fees.

Evaluate Viability: Assess the financial viability of your SMSF property investment. Consider all associated fees and charges, and how they will impact the overall return on your investment. This step is crucial to avoid any unexpected financial burdens in the future.

Partner with Experts

Afiyah's Finance Expertise: While Afiyah offers expertise in Islamic finance, it's important to complement this with advice from your accountant and financial planner. Our role is to ensure your financing is Sharia-compliant and suited to your needs.

Structural and Retirement Goal Alignment: Your accountant and financial planner will assist in understanding the right structure for your SMSF and ensuring that it aligns with your retirement goals. They can provide a comprehensive view of how property investment through your SMSF fits into your broader financial landscape.

What types of properties can be financed?

We offer financing options for both residential and commercial properties, tailored to suit your investment strategy within your SMSF.

What is Afiyah's Process for Islamic SMSF Property Financing?

How do I start with Afiyah’s SMSF Property Financing?

Begin by filling out the 'Apply Now' form or contacting us directly.

What if I’m new to SMSFs?

We partner with SMSF experts to assist in setting up and understanding your SMSF.

How do I discuss my investment goals?

Our specialists are available to discuss and align our services with your property investment goals.

What financing options are available?

We offer a range of Sharia-compliant financing options for your SMSF, guiding you to the most suitable choice.

What are the benefits of financing with Afiyah?

Benefit from an ethical, Sharia-compliant approach to financing that aligns with your financial goals and Islamic values.

What are the costs involved in setting up an SMSF?

The costs vary depending on the setup option chosen. They include setup fees for the Superfund, trustee company, and bare trust, alongside Afiyah’s service fee for the loan component.

How do I start with Afiyah’s SMSF Property Financing?

Begin by filling out the 'Apply Now' form or contacting us directly.

What if I’m new to SMSFs?

We partner with SMSF experts to assist in setting up and understanding your SMSF.

How do I discuss my investment goals?

Our specialists are available to discuss and align our services with your property investment goals.

What financing options are available?

We offer a range of Sharia-compliant financing options for your SMSF, guiding you to the most suitable choice.

What are the benefits of financing with Afiyah?

Benefit from an ethical, Sharia-compliant approach to financing that aligns with your financial goals and Islamic values.

Contact us, and learn more about our Islamic SMSF Finance and start investing!

Afiyah is for all Muslims in Australia, and that includes the future generation of forward-looking Muslims. Reach out to one of our friendly specialists to discuss your options.

With our focus on education and transparency, we aim to demystify the concept of Islamic finance for our customers. Through our resources and expert consultation, we encourage informed financial decisions that are in line with our customers' religious beliefs and financial aspirations.

If you're considering a car purchase and wish to maintain financial and religious integrity, we invite you to contact one of our friendly specialists. Our team is committed to assisting you in understanding our process, answering your queries, and setting you on the path to owning your profitable investment.