The aggregator is the first to add Islamic financial products and services to its offering after partnering with Hejaz Financial Services.
Finsure brokers will be able to start offering Islamic real estate finance products to clients from tomorrow (March 4), in what is believed to be an “Australian first” offering through the broker channel.
The move comes after Finsure has partnered with Hejaz Financial Services – which specializes in offering a range of products that comply with Islamic law – in an initiative that could help connect more brokers to the growing market of Muslim homebuyers and helping them best serve the interests of their clients.
Sharia law prohibits iInterest is charged on home loans, which means that traditional loan products may not be an option for Muslim borrowers. Instead, products that comply with Islamic law involve the financier buying a property, and then the customer buying a share over time, paying rent.
Commenting on the new partnership, Hejaz Financial Services COO Muzzammil Dhedhy said Islamic real estate finance primarily provides a way for young Muslims in Australia looking to enter the housing market through financial products that comply with their religious values.
He said he was “delighted” to offer the Finsure broker network his combinatione of products and services.
Mr. Dhedhy commented, “Islamic law does not allow Muslims to borrow at interest, so conventional mortgage products are not an option for many. In contrast, our real estate financing provides a path to home ownership that complies with Islamic law (Sharia) in two ways – the source of capital and the structure of the agreement with the buyer.
“Increasingly, we are seeing Muslim Australians – especially the younger generations – seeking financial products and models that match their faith, while helping them achieve their financial goals, whether it’s to access to own property or to create wealth. “
The COO said the Hejaz currently approves 200 real estate finance applications each month with an average loan of $ 420,000.
Finsure Group Managing Director Simon Bednar said the organization was delighted to be the “first in the market” to offer this type of loan to brokers.
He also said that in light of the Best Interest Bonds (BIDs) that came into effect on January 1, “it was more important than ever” to be able to clearly demonstrate why a recommended loan product is in fact in the interest. superior of a client. .
“We are driven by a commitment to provide our brokers with the best and most comprehensive range of lenders and products, and this partnership is an opportunity to better serve our brokers and, by extension, their clients,” said Mr. Bednar.
“With this new offering, when a client of the Islamic faith approaches a broker looking for an Islamic loan, our brokers will be able to look beyond conventional loan products and offer a service that matches no only in the best interests of that client, but in their personal values, ”said Mr. Bednar.
Finsure – which has more than 1,900 brokers in its network – recently reported that it had settled over $ 2 billion in one month for the first time in December 2020.
[Related: Finsure reports new settlement record]
Malavika Santhebennur is the Mortgage Securities Editor at Momentum Media.
Prior to joining the team in 2019, Malavika held positions at Money Management and Benchmark Media. She has been writing about financial services for six years.