Liberty Trust in a Nutshell

Liberty Trust is a charitable trust that is committed to teaching financial principles from the Bible and applying these in the financing of homes for all.  The result of its work is living proof that these principles really work.

Since commencing in 1989 the Trust is becoming known for its radical challenge to the Kiwi cultural belief that it’s okay to borrow as much as you can, and live without thought to the future for you and your loved ones.  The Trust teaches and enables New Zealanders to commence saving early for a home (Sowing before you Reap), and then through its lending arm, lends to them without interest (another Bible principle), to enable them to own their own homes debt-free asap.

In Bible times, families and extended families pooled together to provide homes to their newly-weds.  Debt was to be avoided at any cost.  Banks didn’t exist, for the simple reason that the Israelites were commanded in the Bible to lend to each other without interest.  Today the Western world has replaced this culture with commercial mortgages, often lasting for the remainder of one’s working life or longer – often paying as much in interest as originally borrowed.  For those who rent a home they will often rent for life.  The Bible principle regarding debt: “The borrower is servant to the lender” (Prov 22:7), also applies when we are borrowing a home from a landlord.  Liberty Trust is committed to reversing this culture of long-term debt.  Today many parents are unable or unwilling to assist their children into their own homes.  Liberty Trust members aim to help each other – as one large ‘family’.  It is available for all New Zealanders.

Another Bible financial principle is “Stewardship” that we have each been uniquely and deliberately created by God for a special purpose.  This includes the responsibility to wisely use the finance and talents He has given to us.  We cannot truly achieve the liberty and purpose God planned for each of us while we live in debt.

How Does it Work?

In accordance with the principle of ‘Sowing before you Reap’, participants first contribute to the Trust in order to support the growth of the ministry.  Computer simulations and years of practical lending experience have shown that each participant should contribute 2% of the mortgage application each year then approximately ten years after they commence, the lending arm of Liberty Trust will offer to each an interest-free mortgage of 5 times the amount they have donated.  

For example: For a mortgage of $300,000 you should contribute $500 per month to total $60,000 (20%) over ten years.  Loans are offered in order of joining as funds become available for those who have contributed more than $5,000.

Contributors are free to give what they like, when they like.  We recommend that they give a regular amount by bank automatic payment.  They may stop, re-start, increase or reduce the payments according to their circumstances.  For example, they could continue giving for more than 10 years if they need to borrow more, or if they need to repay over a longer term than the standard 7 to 8 years.  For each extra year they wait they may take a year longer to repay (few do).  Every dollar received is continually being loaned and repaid, then loaned again and repaid etc. many times over.  ‘It’s all about people – not profit.’

We cannot give mortgages to those who don’t meet normal bank-lending terms, i.e. the ability to repay.  We trustees are stewards of God’s money just like you.  The Trust lends up to 100% of valuation - so a deposit may not be needed.  

The Trust’s vision for the future is huge.  Since beginning in 1989 the Trust has so far given over 400 interest-free mortgages totalling over $41 million, all without receiving grants or borrowing.  Every dollar given is multiplied again and again and it is now lending over $5 million per year, all interest-free and without borrowing.  

Children, Teens & Students

We strongly recommend that parents and grandparents part-sponsor their children or grandchildren while at school or tertiary training from as little as $10/week, e.g. as part of their pocket money, and teach them why, until they take over the contributions themselves when they commence earning. 

Membership in Liberty Trust gives them both the encouragement and purpose during their schooling and early employment to save for a home, and the practical system to achieve it early.  They can then buy their own home for themselves or as an investment in their late 20s, and be completely debt-free in their 30s.  In turn they will very likely sponsor their own children, and they theirs, and so on.  You will have begun a heritage.

The Trust reports to the Whakatane Liberty Life and Baptist churches but is financially independent of them. 

If you would like to assist by donating to the Trust please complete the form: Request to Support the Ministry of Liberty Trust.  

To find out more we invite you to phone 0508 Liberty (0508 542378), email info@libertytrust.nz or look around our website: www.libertytrust.nz.  


*Contributions are not tax-deductible for those interested in receiving an interest-free mortgage because a benefit is received.  However gifts from those who wish to give without receiving an interest-free mortgage may qualify for a 33% charitable tax rebate from the Inland Revenue.

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