Our Sharia Compliance

Afiyah's products and services are Sharia-approved. Learn how this sets us apart from conventional financial service providers.

Why Afiyah Home Financing?

We turn your homeownership dreams into reality with our easy financing options.

We understand that taking out a loan can be a stressful process, which is why we offer a personalised approach to help make things easier for you.

What is Sharia Compliance?

Sharia-compliant in a financial system revolves around Islamic beliefs and principles. To be Sharia compliant, a financial institution must only engage in certain asset classes and provide specialised mortgages that have been approved by scholars.

In the home financing space, Sharia-compliance is achieved by providing loan facilities where interest is not charged on the balance. Furthermore, the risk of ownership must be evenly distributed between the lender and borrower. Once these conditions are satisfied, the transaction is said to be 'Sharia compliant'.

How Do Sharia-Based Products Differ From Conventional Products?

While the lack of riba in Islamic finance distinguishes Islamic banks and service providers from more traditional institutions, there are other important distinctions as well:

All Islamic products are asset-backed, which adheres to Sharia law. This means that an Islamic funder cannot engage in business unless an asset has been purchased first.

Profits and dividends from Islamic funders come exclusively from businesses that are halal. This includes avoiding companies that deal in interest, pornography, gambling, and other ventures contrary to Islamic values.

General principles of Islamic finance follow certain financial principles that encourage trade, entrepreneurship, and risk-sharing. This allows society to manage its finances in an ethical and socially responsible way.

All Islamic product providers appoint a Sharia Supervisory Committee whose purpose is to ensure that all transactions and operations follow Sharia law and principles.

Afiyah was founded to give our clients other options for lending and investing, outside of what is typically available in Australia.

We are professional financial services that provide Islamic Finance products. When you contact us, we take the time to get to know you and your unique needs so that we can best serve you.