Questions & Answers

Q 1 – What does Liberty Trust do?
A – We seek to advance the Christian faith by teaching & demonstrating the Bible's financial principles, to assist those in financial difficulty, relieve financial burdens and advance the Kingdom of God.  Part of our ministry is lending interest-free to enable New Zealanders to own their own homes, churches, and ministries without long-term debt, so they can be free to fulfill God’s call upon their lives. 

Q 2 – How does it work?
A – Your contributions assist with our charitable activities and build an interest-free storehouse to help others.  Those who contribute to the Trust for 8 or more years are offered an interest-free loan by our lending charity, Ark Resources Limited, of up to 6 times their total contributions.  

Q 3 – Is the loan really interest-free?
A – Yes, every dollar paid after receiving your loan goes directly to reducing your loan principal.  Loans are offered up to 100% of valuation, subject to normal lending criteria and must be secured by a registered residential or church property.

Q 4 – Can anyone join?
A – Yes – anyone may join.  Liberty Trust is ideal for: Children, students, singles, couples, parents, grandparents, whanau, churches, church workers, missionaries, ministry supporters, family trusts and sponsorship of others. 

Q 5 – What happens to my contribution?
A – Your contribution is a donation to Liberty Trust to help others.  Less than 10%* is spent teaching the Bible's financial principles and on our marketing and administration, and more than 90% is immediately lent and re-lent without interest to assist hundreds of households and churches others out of debt.

Q 6 – How soon can I be offered a loan?
A – Loans are offered in the order people join Liberty Trust, as soon as funds are available.  We expect this will be within 8-10 years.  If you are really keen you may contribute more for a loan offer sooner, see question 10.

Q 7 – What about the loan repayments?

A – We ask that the loan is repaid within 7-10 years, or as soon as reasonable, to enable the funds to be re-lent to help others as soon as possible.  The loan repayments are arranged based on your situation at the time of lending. 

Q 8 – Can you provide an example?
Here is a simple example* comparing $300,000 borrowed interest-free with a $300,000 bank mortgage: 

Contributions for a $300,000 interest-free mortgage =      $50,000 to LT charity
Repaid at $2,500 per month for 10 years

Or Interest on a $300,000 bank mortgage at 5%pa** =    $115,021 to bank
Repaid at $2,500 per month for 13.8 years

* This example is deliberately simple and assumes 100% borrowing in both cases.

      Here's an alternate example where $50,000 is used as a deposit for the bank:

Contributions for a $300,000 interest-free mortgage  =      $50,000 to LT charity
Repaid at $2,500 per month for 10 years

Or Interest on a $250,000 bank mortgage at 5%pa** =      $72,724 to bank
Repaid at $2,500 per month for 10.8 years

** At 20 Aug 2018 interest on a standard bank mortgage fixed for 2 years ranged between 4.49% and 5.05% at ANZ, ASB, BNZ & Westpac (NZ's big banks).
The average NZ floating first-mortgage rate from 1995 - 2015 was 8% pa per RBNZ.

Click here to change the example.


Q 9 – What if I can’t afford a mortgage?
A – Liberty Trust seeks to assist all people to own their own homes, regardless of their income.  Those on lower incomes are welcome to take as long as they’d like to contribute, can borrow with zero deposit, and won't be caught by increases in interest rates.

Q 10 - How much should I contribute?

A – Our standard contribution rate is 2% of your loan application each year for 8 or more years.  For this, you will be offered an interest-free loan of 6 times your contribution balance.  Alternatively, you can contribute 33% over 7 years, 36% over 6 years or 40% pa over 5 years for faster memberships:

Contribution Years


per year

Contrib per month 
per $300,000

Loan Multiple

more than 8.5 
8.5 years
7.5 years 
6 years
5 years
less than 2%
less than $500
6 times
6 times
3.33 times
2.78 times
2.5 times

Q 11 – Can I contribute a little now and increase later?
A – Yes.  You can apply for a small loan now and increase it later when you can afford more.  We calculate a delay to reflect the change so that it will not adversely affect others.  For example, if you contributed a large lump sum which doubled your total contribution eight or more years after you commenced this would increase the waiting time by 24 months.

Q 12 – Do I have to wait before buying a home?
A – No, if you want to buy your property immediately then don’t wait for us.  We can replace your mortgage with an interest-free mortgage when it is available.

Q 13 – How safe is Liberty Trust?
A – Liberty Trust is a New Zealand charitable trust, operating since July 1989, and we report to two local churches. We have been approved by an independent qualified actuary and our financial accounts are audited annually and available to the public.  Unlike the banks, we don’t borrow or leverage.  As we have no debt we are not subject to interest rate or credit fluctuations and so you have the certainty of knowing from the outset what your cost will be.  Interest rates can rise or fall but your contribution and repayment rate will not change. 

Q 14 – Would Liberty Trust be suitable for my children?
A – It’s particularly suitable for them.  Many parents start $20 per week memberships for each of their children.  As each child begins earning they can take over the contributions themselves.  Children and young people who receive an interest-free loan can be debt free decades sooner than their peers and save paying many hundreds of thousands of dollars in interest. 

So tell your friends and neighbours to sign up their children for the best investment possible.  By joining the Liberty Trust community they can help others and be invited to borrow for their home without interest following principles laid down in the Bible over four thousand years ago.  

Q 15 – How can I join?

A –  You can download then send back our joining form and set up your contributions to the Liberty Trust bank account 03 0490 0237819 00.  Or send us an email to or call us on 0508 Liberty (which is 0508 542378) should you have any questions.


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    "I shall walk in Liberty because I follow Your Principles" Ps 119 v 45