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 fulfil 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 5-10 or more years are offered an interest free loan by Ark Resources Limited, of 2.5 - 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.  Approximately 5% is used for teaching the Bible's financial principles and assisting the poor and the remaining 95% is currently lent and re-lent interest-free helping people into homes then building a storehouse to assist further generations.

 

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.  After you have contributed for around 10 years (maximum 12 years) you will be offered a 7-year interest free loan of 5 times the amount you have contributed.  You can postpone taking the loan for as long as you wish.  Conversely you can elect to contribute more and receive a loan offer after just 5, 6 or 7.5 years.

 

Q 7 - How much should I contribute?

A - Our standard contribution rate is 20% of your loan application over 10 or more years.  For this you can expect to be offered a 7-year interest free loan of 5 times your contribution balance.  If you wish to receive a loan sooner you can contribute 30% over 7.5 years, 36% over 6 years or 40% over 5 years for faster memberships, as follows:

Contribution Years	Contribution  Total	Contribution  per Annum	Contrib per month  per $100,000	Loan Multiple
more than 10	20%	less than 2%	less than $166.67	5 times
10 years	20%	2%	$166.67	5 times
7.5 years	30%	4%	$333.33	3.33 times
6 years	36%	6%	$500.00	2.78 times
5 years	40%	8%	$666.67	2.5 times

 

Q 8 - What about the loan repayments?

A – The standard loan term is 7 years.  To receive a loan with a longer repayment period you can choose to either wait longer or contribute more.  For every extra year you wait (with or without contributing) you can take an extra year to repay the loan, up to a maximum loan term of 15 years.  Alternatively you can contribute 30% or 40% over 10 (or more) years, for loan terms of 10 years and 15 years respectively as follows:

Loan Years	Contribution  Total	Contribution  per Annum	Contrib per month  per $100,000	Loan Multiple
7 years	20%	2%	$166.67	5 times
10 years	30%	3%	$250.00	3.33 times
15 years	40%	4%	$333.33	2.5 times

 

Q 9 - Can you give an example?

A – Here is a simple example comparing a 10-year interest free loan with a $300,000 8% 20-year bank mortgage:

Donate $90/ week to Liberty Trust for 13 years   (Alternatively $173/ week for 10 years  = $90,000) Then borrow $300,000 & repay at $2,500 per month over 10 years.         Or Borrow $300,000 from a Bank  Repay $300,000 8%* mortgage at $2,500 per month over 20 years.            * Note - this example does not include factors such as house price and interest rate changes.   $ 60,000 $ 300,000 $ 360,000   $ 601,525

 

Q 10 – 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 can repay the loan to Ark Resources Ltd at terms that would be impossible at a bank.

For example a 40-year $300,000 8% bank mortgage would require repayments of $482 per week.  Anything less than $462 would be not be possible as it would not cover the interest.  

However if you contributed $65 per week to Liberty Trust for 18 years you could borrow $300,000 and repay it over 15 years at just $385 per week!  

 

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 charge so that it will not adversely affect others.  For example, if the membership 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 with a bank loan then don’t wait for us.  We can replace your bank mortgage with an interest-free loan when it is available.

 

Q 13 – How safe is Liberty Trust?

A – Liberty Trust is a New Zealand charitable trust, operating for over 20 years 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.   Because Liberty Trust does not borrow 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 (see RBNZ graph) but your contribution and repayment rate will not change. 

 

Q 14 – Would it be suitable for my children?

A – It’s particularly suitable for them.  Many parents start memberships for each of their children.  As each child begins earning they can take over the contributions themselves until they reach their desired target.  Children and young people can be debt free decades sooner than their peers and save paying many hundreds of thousands of dollars in interest.  

We believe it is absolutely critical that parents in today’s consumer world train their children wisely in the use of money.  We have published two books for training in how to handle money: “The Money Book for Kiwi Kids”, for ages 8 – 12, and “The Money Book for Kiwi Teens”. As a part of their training we also recommend that children as young as 5 years commence a long-term saving plan by joining Liberty Trust at a minimum of $10 per week, part-sponsored at that age by their parents.  They will increase later, maybe stop to pay off a Tertiary Loan or take an O.E., but come back to it.  It may take them 10 – 20 years before they feel ready to commit to a purchase.  There is no better time to save than when young, when they have no commitments and before they develop lifetime spending habits.  And with the price of housing as it is today, this could be the only affordable way in which they will be able to buy a home without spending most of their working lifetime paying off a mortgage.   

So tell your friends and neighbours to sign up their children for the best investment possible.  By joining our community they will follow God’s financial principles, help many others, and save time and money when they are ready to buy a 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 0800 Lib Trust, email info@libertytrust.org.nz or download application forms at www.libertytrust.org.nz.  Our website includes teaching, newsletters, interactive examples, endorsements from Christian leaders and scholars, and more than 150 inspiring testimonials from New Zealanders who have received interest free loans. 

 

 

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