The Jubilee Christian Charitable Trust was originally set up in June 1989 from an idea born in 1987. Various Southland Churches and their members help fund the idea of interest free deposits made available for interest free mortgages – to set borrowers off debt free early and be free to offer their resources back to various communities.
The idea was simple – a sharing of resources according to biblical principals with a mortgage period of just 7 years – 6 years to pay off the debt and the final 7th year was to continue with the same payment but this is classed as savings (which can either stay invested in the Trust or be withdrawn at the end of the period)
Investment into the Trust is just that – Investment, not a donation. Those with available funds can deposit this into the Trust for any period so the funds can be lent out to borrowers – There is no catches or strings attached – and there is no interest to be made or paid by either party.
An example of a simple way to view the structure is shown: 20 people with surplus funds invest $5,000 each into the Trust for a total of $100,000. Of this 70% is available for mortgages (the remaining 30% allows liquidity for the Trust and provides a small income from interest received from its bank deposit). The $70,000 available for a mortgage is lent out and repaid by the borrower over a 6 year period (and in this example would equate to a weekly payment of just over $224 per week). In the remaining 7th year the borrower would continue with weekly payments of $224 and would give them over $11,000 savings at the end of the term. This is their money – which can be reinvested into the Trust or withdrawn.
The original investors can withdraw their funds back over the period or in one lump sum at the end of the term. i.e. either way they receive their $5000 back.
All loans are secured by a registered first mortgage. The Trust operates a strict mandate by only lending up to 70% of the registered valuation of the property and cash is deposited into registered NZ banks or bank like deposits. Borrower are assessed to ensure they are able to meet to loan commitments.
Investment can be made in two forms. Either by a lump sum for either a fixed term (6 months to 7 years) or by regular weekly, fortnightly or monthly payment. A popular option is to save $20 per week into the Trust for a 7 year term. This small weekly amount adds up to over $7,000! and can be either invested back into the Trust as a lump sum deposit or withdrawn. This option provides both investment into the Trust and develops a healthy savings plan for the investor.
For more information or an investment statement please call us on 0800 JUBILEE, or 03 214 0942 or email us on firstname.lastname@example.org