When refinancing to Hejaz, why does my new loan amount need to be higher than my actual loan balance with my current lender?

To ensure no shortfall of funds at the time of settlement, a buffer amount is added to the loan amount. This buffer amount covers any accrued interest/Ijara from the outgoing lender, alongside any fees applicable by outgoing and incoming lender.

Should a buffer amount not be applied, you will be required to conduct an in-person cash deposit at your nearest bank to cover the shortfall at the time of settlement.