FAQ'S
Why Islamic Finance?
1. Compliance with Faith-Based Ethics Islamic finance is built on the ethical teachings of Islam, making it essential for Muslims who want to manage their money in a way that aligns with their religious beliefs. Book An Appointment Apply Now
2. Prohibition of Riba (Interest)
-Interest is considered exploitative and unjust.
-Islamic finance promotes profit-and-loss sharing instead of fixed returns, aiming for fairness and shared risk between lender and borrower.
3. Asset-Backed Financing
-Every transaction must be linked to real economic activity or tangible assets.
-This reduces speculation and supports a more stable financial system.
4. Risk Sharing and Justice
-Emphasizes partnership and equity-based models (like Mudarabah, Musharakah), where profits and losses are shared.
-Encourages transparency, fairness, and accountability in business.
5. Avoidance of Gharar (Excessive Uncertainty)
-Contracts and transactions must be clear and free from deception or high ambiguity.
-This protects all parties from unfair risk and promotes trust.
6. Ethical Investment
-Islamic finance prohibits investing in harmful industries (e.g., alcohol, gambling, tobacco, weapons).
-Promotes socially responsible investing (SRI) and economic justice.
Who is our financier?
The Perpetual Corporate Trust Limited trading as Origin Mortgage Management Service is the financier of the most of Islamic finance providers in Australia. Those Islamic finance providers are the mortgage manager of Origin Mortgage Management Service. Under these arrangements Origin’s network of Mortgage Managers are responsible for own branding, loan origination and credit assessment. They are also the ongoing customer service contact point for all borrowers. Origin maintains ownership of product and lending policy. Barakah Finance working with those mortgage managers to provide Islamic finance to Australian Muslims.
What type of Sharia finance we do?
Progress Loan use Ijarah or lease agreement generally known rent to own agreement. In this agreement bank buys the property you want and then rents it to you for a period of term at a monthly cost. You’re given ownership of the property at the end of the term where you will be the legal owner of that property and title will under your name from the date of purchase.
How our products are Sharia Compliance?
Mortgage Managers arranges for the Financier to enter an Ijarah Financing Agreement with the Customer. They have their Sharia Board for financing agreement with Sharia compliance. Furthermore, Our Barakah Finance also have own Sharia board under a CSAA (Certified Shariah Advisor & Auditor) fellowship member of Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and regularly audit financing agreement between financier and customers.
Who is AAOIFI?
The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) is an Islamic international autonomous non profit corporate body that prepares accounting, auditing, governance, ethics and Sharia standards for Islamic financial institutions and the industry. Its standards are currently followed by all the leading Islamic finance institutions across the world.