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 enabling 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 up to 10 or more years are offered an interest
free loan by our lending associate, Ark Resources Limited, of up to 5 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
bank lending criteria and must be secured over 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 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. This is normally around 10 years. Or 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
an example* comparing $300,000 borrowed interest free with a $300,000 bank
mortgage:
|
Contribute
$115/ wk to Liberty Trust for 10 years
Then
borrow $300,000 & repay at $577 per week for 10 years
Or Borrow $300,000 from a Bank at 8%** (20-year average)
Repay mortgage at $579
per week for 20 years
|
$
60,000
$300,000
$360,000
$602,237
|
|
|
**
The average NZ floating first-mortgage rate from 1995 - 2015 was 8% pa per RBNZ.
It is difficult to predict what future rates will be.
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.
For example a 20-year
$300,000 6% bank mortgage would require repayments of $496 per week. But if bank
interest rates increased by just 2% to 8% the mortgage repayments would
increase to $579 per week.
Q 10 - How much should I contribute?
A – Our
standard contribution rate is 20% of your loan application over 10 or more
years. For this you will be offered an interest free loan of 5 times your
contribution balance. Alternatively you can contribute 30% over 7.5 years,
36% over 6 years or 40% pa over 5 years for faster memberships:
|
Contribution Years
|
Contribution
Total
|
Contribution
per year
|
Contrib per month
per $100,000
|
Loan Multiple
|
more than 10 10 years 7.5 years 6 years 5 years | 20% 20% 30% 36% 40% | less than 2% 2% 4% 6% 8% | less than $166.67 $166.67 $333.33 $500.00 $666.67 | 5 times 5 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 the contributions were doubled
after 9 years 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 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. 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 $10 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 will follow God’s financial principles, help many
others, and have the opportunity to borrow interest free for their home. This is the liberty that
comes from sowing before reaping and working together as a community—principles
laid down in the Bible over four thousand years ago.
Q 15
– How can I join?
A
– Give us a call on 0508 Liberty,
email info@libertytrust.org.nz or
download our joining form.
Printer-friendly version
|
"I
shall walk in Liberty because I follow Your Principles" Ps 119 v 45
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