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Finance for Housing

The Church Property Trustees recognise that it is sometimes appropriate for a minister to purchase a house in advance of receiving the lump sum paid by the Beneficiary Fund upon retirement. To assist ministers in this circumstance, the Trustees are prepared to make secured loans available from the Beneficiary Fund under the following conditions, which may be varied from time to time.

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The term of the loan can be up to ten years but it is repayable in full upon retirement from the lump sum entitlement of the Beneficiary Fund.

Monthly instalments of principal and interest are required. Interest is charged quarterly. Principal repayments are at the rate of 5 percent per annum of the sum borrowed. The interest rate for first mortgage is 0.5 percent less than the BNZ floating mortgage interest rate. The interest rate is changed at the beginning of the month following any change in the BNZ floating mortgage rate.

Normally the total instalment should not exceed 25 percent of the applicant’s household income.

The applicant needs to a person who has a stable history of ministry and a good record in respect of any other borrowings from the Church.

Preference will be given where the applicant is within 10 years of impending retirement.

The amount sought by way of a mortgage must be adequately covered by any lump sum retirement benefit from the Fund. In some cases the amount available as a withdrawal from the Fund must exceed any loan granted.

Repayments must be sufficient to effect some reduction in principal advanced.

The property to be purchased should be the only property owned by the applicant (either directly or indirectly) and not be an additional property purchased as a long-term investment.

The applicant will be required to provide a mortgage over the property to be purchased. Unless there are special circumstances this mortgage is to be by way of a first mortgage.

There is no application fee but the borrower must pay the legal fees of the Trustees' solicitor as well as their own solicitor.

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Applications for mortgages must be made using the accompanying application form.

Please send the completed form to: The Secretary, The Presbyterian Church Property Trustees, PO Box 9049, Wellington.