Has anyone any experience with any of the financial institutions that offer Islamic Home Loans?
Are they different to normal loans?
Yes, very different, and only financial institutions set up to deal with these types of loans provide them, but how would I find out if the institutions are reliable?
For @SueW’s and others information, if not aware, this Finder page explains why they are different.
As for ‘interest’ by whatever name, some may consider the ‘game’ to be nothing but rearranging deck chairs but adherents of any faith have their own causes and conditions, this aspect being one.
Businesses are recognising the opportunity.
They don’t charge Usury but built into the loan is a cost of lending including what might be seen as a rate that reflects interest.
However the loan process may be more ethical and terms may be more suited to the receiver than more common providers of loans would provide.
Seems to me to be all about a way to semantically refer to interest, or usary, by another name.
Some of these loan schemes look like the rent buy model that were a scourge in past years and banned in most states, at least for home lending.
The ATO has reviewed and determined the loan schemes are tax compliant. The terms and conditions are commercially acceptable as noted, https://taxboard.gov.au/consultation/islamic_finance_products
A simple example and explanation. The total cost of the agreement is provided upfront.