FIRST HOME BUYER
The first step is to get your finances sorted. First do a calculation to find out how much you can borrow to buy your dream home. Next…..
- Contact with us
- Know your borrowing capacity
- Apply for pre approval
- Research the property market
- Get free property report from us
- Provide purchase contract to us
FAQ
Who we are?
Barakah Finance working with mortgage managers who arranges for the financier to enter an Ijarah financing agreement with the customers.
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.
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.
What type of Sharia finance we do?
Barakah Finance 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.
Is Barakah Finance working with Hejaz Islamic Finance?
Yes, Hejaz financial service is a mortgage manager of Origin Mortgage Management Service and their home finance products are Sharia compliant and certified by their Sharia supervisory board. Furthermore, Our Sharia board regularly audit financing agreement between financier and customers.
How to calculate rent in Islamic finance?
Rent cauculate based on Principal loan amount x Rental rate. As example if loan amount $100,000 and rental rate is 5.55 %, then yearly rent will $100,000 x 0.0555 = $5,550 and monthly rent will $5,550/12 = $462.50
How much money can I borrow?
We’re all unique when it comes
to our finances and borrowing needs. Contact us today, we can
help with calculations based on your circumstances.
How much do I need for a deposit to buy my first home?
Islamic finance require estimate 12% (including LMI) of
the value of a property, Speak with us to discuss your options
for a deposit. You may be able to borrow against the equity in
your existing home or an investment property.
How often do I make home loan repayments - weekly, fortnightly or monthly?
Islamic finance offer flexible repayment options to suit your pay cycle is for weekly or fortnightly instead of monthly repayments as you will make more payments in a year, which will save dollars and time off your loan.
What is the First Home Owner Grant and can I get one?
This is a grant available to
Australian citizens or permanent residents who wish to buy or
build their first home, which will be their principal place of
residence within 12 months of settlement. Contact us
directly to find out more about eligibility requirements
in your state and how much grant money you could receive.
What fees/costs should I budget for to buy my first home?
- Stamp duty — This is the big one. All other costs are relatively small by comparison. Stamp duty rates vary between state and territory governments and also depend on the value of the property you buy. You may also have to pay stamp duty on the mortgage itself. To estimate your possible stamp duty charge, visit our Stamp Duty Calculator.
- Legal/conveyancing fees — Generally around $1,000 – $1500, these fees cover all the legal requirements around your property purchase, including title searches.
- Building and Pest inspection — This should be carried out by a qualified expert, such as a structural engineer, before you purchase the property. Your Contract of Sale should be subject to the building inspection, so if there are any structural problems you have the option to withdraw from the purchase without any significant financial penalties. A building and pest inspection and report can cost up to $1,000, depending on the size of the property. Your conveyancer will usually arrange this inspection, and you will usually pay for it as part of their total invoice at settlement (in addition to the conveyancing fees).
- Lender costs — Lenders will charge establishment fees to help cover the costs of their own valuation as well as administration fees. We will let you know what your lender charges but allow about $1,500 to $2,000.
- Mortgage Insurance costs — If you borrow more than 80% of the purchase price of the property, you’ll also need to pay Lender Mortgage Insurance. You may also consider whether to take out Mortgage Protection Insurance. If you buy a strata title, regular strata fees are payable.
- Ongoing costs — You will need to include council and water rates along with regular loan repayments. It is important to also consider building insurance and contents insurance. Your lender will probably require a minimum sum insured for the building to cover the loan.