It is important to remember that we are based on Sharia. Therefore, charge rental and not interest on their home finance products.
As an Australian provider of Credit and Financial Services, Hejaz Finance is regulated by the Australian Securities and Investments Commission (ASIC). Hejaz Finance is required to display its charges in this way so that consumers can judge the value of what it offers and charges. Customers must be able to compare Hejaz Finance’s rate and charges against what they would receive or be charged by conventional financial institutions.
By expressing the rental rate as a % the charge is not converted into interest. It simply expresses how much rental Hejaz Finance is charging the customer as a percentage of the property purchase price. It also allows the customer to compare this charge with other providers in the market, including conventional mortgage companies, and to make a decision on which product is most suitable for them. Whilst our Home Finance Products are Sharia compliant and the conventional mortgage is not, the % rate is a common measuring tool that makes the two products comparable.
Displaying % rates for products benefits the customer and their ability to make a choice about the products they wish to take.