Islamic Self-Managed Superannuation Fund Finance (SMSF)

Invest in residential and commercial real estate using your superannuation through a sharia compliant product

Islamic SMSF Finance in Australia

Islamic Self-Managed Superannuation Fund Finance is a new product that was launched to the Australian market in late 2023. Due to the strong demand from the community for a way to invest in both residential and commercial real estate using their superannuation, this product was developed to address this growing need.

Since its introduction into the market, Islamic SMSF Finance has been applied for by members of the community in all states and territories of Australia.

How Does Islamic SMSF Finance Work?

Islamic SMSF Finance is available for both residential and commercial properties. In order to apply for Islamic SMSF Finance, you must first set up a Self-Managed Super Fund with a corporate trustee. If you do not have this, it can be set up through your financial professional.

Islamic SMSF Finance is based on the Self-Managed Super Fund entering into a JV agreement to purchase a property as this is permitted under sharia principles. Under this agreement, the SMSF trustee will contribute the deposit to the purchase of the property in a bare trust and the lender will contribute the remaining amount. Under the agreement, the SMSF trustee will be granted exclusive use and management of the property including receiving all rental rights. In order for the lender to be compensated for its contribution, the lender receives a dividend and a right for the SMSF trustee to buy out the lenders contribution.

How To Apply For Islamic SMSF Finance

To apply to PURCHASE with Islamic SMSF Finance, you will need to meet the following criteria:

⦁ Have an established SMSF + Corporate Trustee
⦁ Have a minimum deposit of 10% + Costs available in your SMSF.
⦁ Have good credit score and credit conduct.
⦁ Pass the SMSF assessment of income.
⦁ Provide identification, income documents and bankstatements

To apply to REFINANCE with Islamic SMSF Finance, you will need to meet the following criteria:

⦁ 6 months good repayment history for your current SMSF
⦁ Have a corporate trustee for your SMSF
⦁ Have a minimum deposit of 10% + Costs available in your SMSF.
⦁ Have good credit score and credit conduct.
⦁ Pass the SMSF assessment of income.
⦁ Provide identification, income documents and bankstatements

In addition to the above minimum documents, the lenders may request additional documents.

How Does Sharia Finance Help?

It can be difficult to navigate Islamic home finance in Australia. At Sharia Finance, our team of Islamic specialists have significant experience helping our clients around Australia to successfully apply for Islamic home finance. Our team support you every step of the way including discussions about different Islamic funders and their contracts, negotiating with the funder on your behalf and managing the application all the way until the funds are paid. If you would like to speak with us about your personal circumstances, simply give us a call or request a call using our online booking platform.