A pioneering partnership between leading aggregator Finsure and Hejaz Financial Services will allow, for the first time in Australia, Islamic home finance products to be offered to clients through a broker channel.
The deal will better connect mortgage brokers to the rapidly growing Australian Muslim home-buyer market.
Muzzammil Dhedhy, Chief Operating Officer Hejaz Financial Services said Islamic home finance provides an avenue for a growing market of primarily younger Australian Muslims seeking to enter the housing market through financial products that align with their religious values.
“Islamic law does not allow Muslims to borrow on interest so conventional mortgage products are not an option for many. By contrast, our home finance provides a home ownership pathway that is compliant with Islamic (Sharia) law in two ways – the source of capital and the structure of the agreement with the buyer,” Mr Dhedhy said.
“Increasingly we are seeing Muslim Australians – particularly younger generations – seeking financial products and models that align with their faith, while still helping them reach their financial goals, be it home ownership or wealth creation.”
Mr Dhedhy said Hejaz Financial Services was currently approving 200 home finance applications each month and that the average home finance loan is $420,000.
“We are delighted to partner with Finsure to be able to offer our market-leading suite of products and services through a highly-respected broker channel with such extensive national reach,” he said.
Simon Bednar, Finsure Group General Manager, said the organisation was excited by the prospect of being the first in market to offer this unique loan type to its brokers.
The company, which recently hit $2bn in monthly settlements, has a broker network of over 1,900 brokers across Australia.
“We are driven by a commitment to providing our brokers with the best and most comprehensive suite of lenders and products, and this partnership is an opportunity to better service our brokers, and by extension their clients,” Mr Bednar said.
Mr Bednar continued that considering recently implemented obligations set to mortgage brokers by ASIC, it was more important than ever to be able to clearly demonstrate why a loan product recommended is in fact in a client’s best interest.
“Through this new offering, when a client of Islamic faith approaches a broker seeking an Islamic loan, our brokers will be able to look beyond conventional loan products and offer a service that aligns with not only that client’s best interests, but their personal values.”
The deal was inked in January 2021 and took effect on 4 March 2021.