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Home loans and Muslims – an Australian perspective

Reyaz Jeffrey (School of Business, The University of Newcastle, Newcastle, Australia)
Guilherme Pires (School of Business, The University of Newcastle, Newcastle, Australia)
Philip J. Rosenberger Iii (School of Business, The University of Newcastle, Newcastle, Australia)

Journal of Islamic Marketing

ISSN: 1759-0833

Article publication date: 18 June 2024

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Abstract

Purpose

This study aims to investigate how Australian Muslims make consumption-related decisions regarding the purchase of home loan products.

Design/methodology/approach

This exploratory research used in-depth semistructured interviews with community leaders from leading Muslim ethnic communities. Seventeen community leaders from the six largest Muslim community groups by country of birth and living in Melbourne and Sydney were selected for the interviews. The interview data was analyzed using NVivo 12.

Findings

The findings suggest that despite knowledge of and concern for Islamic tenets regarding the consumption of banking and financial products, including home loans, most Muslims viewed conventional home loans (CHL) as being permitted, essential or innocuous. Reasons for such views include the interpretation of Islamic tenets, limited awareness of available Islamic home loan offerings, convenience factors related to accessing CHL offerings, service quality levels, availability of technology-based services such as internet banking, and the influence of social groups and communities.

Research limitations/implications

This research helps marketers understand the attitudes, subjective norms (SN) and behavioral factors related to the Muslim consumption of home loans.

Practical implications

The findings of this research can facilitate the development of financial products and marketing strategies that better appeal to Muslims. Such loan products can improve the uptake of home loans (and, in effect, homeowners) by Muslims, potentially improving social and financial inclusion.

Social implications

This research helps marketers understand the attitudes, SNs and behavioral factors related to the Muslim consumption of home loans, which can facilitate the development of financial products and marketing strategies that better appeal to Muslims. Such loan products can improve the uptake of home loans (and, in effect, homeowners) by Muslims, potentially improving social and financial inclusion.

Originality/value

This qualitative study explores the drivers of Muslim consumers’ uptake of home loans in Australia. Drawing upon the theory of planned behavior and the literature, antecedents to attitude, SNs and perceived behavioral control that influence intention and behavior were investigated. It identifies factors influencing decision-making related to home loans by Australian Muslims, contributing to a theoretical framework to investigate Muslims’ consumption of financial products.

Keywords

Acknowledgements

Funding statement: This research was supported by an Australian Government Research Training Program Scholarship.

Citation

Jeffrey, R., Pires, G. and Rosenberger Iii, P.J. (2024), "Home loans and Muslims – an Australian perspective", Journal of Islamic Marketing, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JIMA-12-2023-0392

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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