Liberty Trust: God doesn’t believe in interest on loans

27 Aug 2011 10:22p.m.

Paula wrote:

How unusual to find a financial institution that is not out for its own gain. Liberty Trust is a great example of what can be achieved when people work together. Thanks for bringing this to our attention, Campbell Live.

25 Aug 2011 09:44p.m.

Kerryanne wrote:

Terisa - Yes, Liberty Trust has been able to help many into homes that could never have bought otherwise. Deb - Yes, it could work on a larger scale. Nan - You've given the classic example of someone posting without checking the facts first. Go to www.libertytrust.org.nz and have a look. It certainly isn't a scam. Loans are given in the order of joining so there is no opportunity for preferential treatment or fraud. It takes about 10 years for the money to circulate - it's simple mathematics. Everyone who has joined in the last 22 years has been offered a loan exactly as they were told to expect. There are about 150 testimonies on the website so have a look - there might be someone you know! It's not nearly as much a gamble as taking out a 30-year mortgage at 6.5% when interest rates can skyrocket anytime. Over the last 20 years NZ mortgage rates have averaged around 9.5% but at times have been 11% or more. I'd prefer to donate to a good cause then repay my mortgage interest free in just 7-8 years to 25-30 years at an unknown cost.

25 Aug 2011 08:29p.m.

Aaron wrote:

Dan - The Bible doesn't say "Neither a borrower nor a lender be". If you did a google search you'd find that was from Shakespeare's Hamlet!! Instead the Bible frequently encourages lending (eg Ps 37:26 "He is ever lending generously, and his children become a blessing.") but always without interest or profit (eg Deut 23:19, Ex 22:25, Lev 25:35, Ps 15:5, Pr 28:8, Ez 18:13 etc).

21 Aug 2011 03:45p.m.

Nan wrote:

This sounds like a scam to me.There is a potential here for fraud.Who decides who gets a loan and when?Do friends and family of organisers get a priority?What about claiming tax on donations? for example one could donate $10,000 for their son as a deposit for an interest free loan which they were planning to do any way but tnstaed they can claim tax on that $10,000 because it was a donation.There was too much palaver and alleluias etc for me too trust this trust.

21 Aug 2011 08:33a.m.

Deb wrote:

I found this story very interesting! Are interest free loans or low interest loans possible on a larger scale? It seems to me that it is possible to have a mortgage savings scheme where a whole bunch of young kiwis save, and perhaps five years down the track the first people to join the scheme can start to take loans, with a very low interest rate. Does the bank always have to win so well? Does the bank have to pay itself so well at the expense of kiwis who already find it so hard to own their own home? I would love to hear more on this topic, and more about how feasible this idea is? Are there any other finance companies who offer anything similar? Thanks, very interesting Campbell Live people!

20 Aug 2011 10:12p.m.

Fleshy wrote:

It appears no one has done any research but have brooked opinions on face value. Opinions are vagueries (including my own), but at least go to the website and do some maths before clicking send. You CAN still get a home loan AND save toward your interest free loan by paying interest only for a while and increasing repayments as your income (hopefully) increases over time. Then, when your ten years is up transfer your loan over to the interest free loan to pay off sooner. Whether or not the extra savings could have been put into the initial loan in the first place, to offset the cost of interest over the ten years or not, you'd have to work out yourself. The fact is that they do not have to borrow money for their loans which the banks do so in a way there is less risk. The high court has also approved their way of business. They've lent to people to build homes and to build churches for the last 20 odd years. AND they came across as genuine, appearing to believe in their service. Bottom line. Don't bag it unless you've investigated some more.

20 Aug 2011 09:54p.m.

Terisa wrote:

I think its a big blessing & great bargain for people with low income that cant afford or qualify for home loan, who are very keen of buying their own/first home. This liberty trust organisation Sounds great to me especially with the interest that people will have to pay back to the bank for their home loan, i think thats a ridiculious amount of interest money that people pay back to the bank over a certain timeframe.

20 Aug 2011 02:15p.m.

Dan wrote:

It says in the bible "neither a lender nor a borrower be". This Whakatane based church sounds like they are trying to have their cake and eat it as well.

19 Aug 2011 11:10p.m.

Ian wrote:

I go to a bank and can get a mortgage tomorrow. I go to these guys and have to pay them $100 a week for an unknown amount of time (at least 10 years +) and then they might give me a loan. Campell Live should be ashamed of promoting this as a positive thing.

19 Aug 2011 11:10p.m.

Ian wrote:

I go to a bank and can get a mortgage tomorrow. I go to these guys and have to pay them $100 a week for an unknown amount of time (at least 10 years +) and then they might give me a loan. Campell Live should be ashamed of promoting this as a positive thing.