for anything, 00:00:01.66\00:00:02.60 always feel that 00:00:02.60\00:00:04.43 you are in the driver's seat, 00:00:04.43\00:00:06.00 because if the deal isn't right 00:00:06.00\00:00:07.84 for you, you can always 00:00:07.84\00:00:09.14 walk away. 00:00:09.14\00:00:10.27 And walk away, 00:00:10.27\00:00:11.31 because the worst thing to have 00:00:11.31\00:00:12.84 is buyer's remorse, 00:00:12.84\00:00:14.21 because that will stay with you 00:00:14.21\00:00:15.68 much longer for those 00:00:15.68\00:00:16.71 major purchases. 00:00:16.71\00:00:17.85 [theme music] 00:00:19.88\00:00:22.88 ¤¤ 00:00:22.88\00:00:25.89 [upbeat music] 00:00:56.92\00:00:59.92 ¤¤ 00:00:59.92\00:01:02.99 >> Welcome to 00:01:03.39\00:01:04.46 It Is Written Canada. 00:01:04.46\00:01:05.79 Thank you for joining us. 00:01:05.79\00:01:08.30 Jesus warned... 00:01:08.30\00:01:09.76 This is good advice 00:01:20.54\00:01:21.98 when it comes to 00:01:21.98\00:01:22.98 making major purchases. 00:01:22.98\00:01:25.18 Do I buy a used car 00:01:25.18\00:01:27.32 or a new car 00:01:27.32\00:01:28.55 or lease a car? 00:01:28.55\00:01:30.02 Do I rent an apartment? 00:01:30.02\00:01:31.79 Or do I buy my own house? 00:01:31.79\00:01:34.36 Will I be able to afford it 00:01:34.36\00:01:36.56 or will I, in the end, 00:01:36.56\00:01:38.56 not have enough 00:01:38.56\00:01:40.10 to finish paying it off? 00:01:40.10\00:01:41.76 >> Our special guest on 00:01:42.93\00:01:44.43 It Is Written Canada today 00:01:44.43\00:01:45.87 is Sven Tornlov, along with 00:01:45.87\00:01:48.40 other financial experts 00:01:48.40\00:01:49.94 who will share with us 00:01:49.94\00:01:51.87 their wisdom on making 00:01:51.87\00:01:53.81 major purchases. 00:01:53.81\00:01:55.54 >> Sven, thank you so much for 00:01:56.41\00:01:57.81 joining us on 00:01:57.81\00:01:58.81 It Is Written Canada today. 00:01:58.81\00:02:01.28 >> You're very welcome and 00:02:01.28\00:02:02.32 my pleasure to be able to 00:02:02.32\00:02:03.49 talk about things that I am 00:02:03.49\00:02:04.92 passionate about. 00:02:04.92\00:02:06.42 >> Sven, what are the 00:02:06.42\00:02:07.82 two major purchases that 00:02:07.82\00:02:10.23 people have to make? 00:02:10.23\00:02:11.89 >> You know, for most people, 00:02:11.89\00:02:13.26 the two very common will be 00:02:13.26\00:02:14.86 a house and a car. 00:02:14.86\00:02:16.16 >> Sven, let's start with 00:02:17.23\00:02:18.60 buying a car. 00:02:18.60\00:02:19.80 Can you give us some tips 00:02:19.80\00:02:21.30 that we need to follow 00:02:21.30\00:02:22.67 when it comes to buying a car? 00:02:22.67\00:02:24.91 >> So if you're in the market 00:02:25.74\00:02:26.81 for a new car, you're gonna be 00:02:26.81\00:02:28.11 going to a new car dealership. 00:02:28.11\00:02:30.45 And if you're looking for 00:02:30.45\00:02:31.51 a used car, I suggest that 00:02:31.51\00:02:33.52 you go to one of two places. 00:02:33.52\00:02:34.98 You still go to a 00:02:34.98\00:02:36.12 new car dealership 00:02:36.12\00:02:38.12 and depending on your 00:02:38.12\00:02:38.42 and depending on your 00:02:38.69\00:02:39.25 comfort level, also go to 00:02:39.35\00:02:40.89 a private sale. 00:02:40.89\00:02:42.16 If it's going to be a 00:02:43.09\00:02:43.53 If it's going to be a 00:02:43.66\00:02:44.09 private sale that you're 00:02:44.26\00:02:45.13 going to look to buy, 00:02:45.13\00:02:47.76 talk to the owner 00:02:47.76\00:02:49.33 and see if you can share 00:02:49.33\00:02:51.03 in the cost, 50-50, 00:02:51.03\00:02:51.93 in the cost, 50-50, 00:02:51.93\00:02:52.93 of having that car inspected. 00:02:52.93\00:02:55.70 So if you don't buy it, 00:02:55.70\00:02:57.21 the owner still has the 00:02:57.21\00:02:57.91 the owner still has the 00:02:57.91\00:02:58.54 120-point inspection 00:02:58.54\00:03:00.04 that they can then show 00:03:00.04\00:03:01.44 to the next potential buyer. 00:03:01.44\00:03:03.88 Now, when you get that 00:03:03.88\00:03:04.98 120-point inspection, if you're 00:03:04.98\00:03:06.78 buying a Honda, let's say, 00:03:06.78\00:03:08.85 take it to a Honda dealership. 00:03:08.85\00:03:10.55 If you're buying a Toyota, 00:03:10.55\00:03:12.15 take it to a Toyota dealership 00:03:12.15\00:03:13.49 because they will be 00:03:13.49\00:03:15.56 so much more well aware and... 00:03:15.56\00:03:17.33 ...they've seen that vehicle 00:03:18.39\00:03:19.43 so many more times. 00:03:19.43\00:03:20.60 They know what to look for. 00:03:20.60\00:03:22.96 >> So there are some people 00:03:22.96\00:03:23.97 when it talks- when you talk 00:03:23.97\00:03:25.03 about getting a car, 00:03:25.03\00:03:26.33 they're thinking, I absolutely 00:03:26.33\00:03:28.74 love this car, but it might be 00:03:28.74\00:03:30.17 beyond their budget. 00:03:30.17\00:03:31.84 So what kind of mindset 00:03:31.84\00:03:33.94 should they have 00:03:33.94\00:03:34.98 when they go into this 00:03:34.98\00:03:36.01 so that they don't go beyond 00:03:36.01\00:03:37.11 their budget and make an 00:03:37.11\00:03:38.18 impulse purchase? 00:03:38.18\00:03:39.78 >> You know, the interesting 00:03:39.78\00:03:40.82 thing is, whether you're buying 00:03:40.82\00:03:41.85 a Ferrari or a Mercedes 00:03:41.85\00:03:44.25 or a Honda, 00:03:44.25\00:03:46.15 ultimately you're just 00:03:46.15\00:03:47.69 gonna get from point A to B. 00:03:47.69\00:03:49.89 You know, that's the 00:03:49.89\00:03:50.93 bottom line. 00:03:50.93\00:03:51.96 So I think, again, you need to 00:03:51.96\00:03:53.09 do a needs analysis 00:03:53.09\00:03:55.06 and you need to be purchasing 00:03:55.06\00:03:57.00 the vehicle with the lowest cost 00:03:57.00\00:03:59.00 per kilometre 00:03:59.00\00:04:00.47 for your needs. 00:04:00.47\00:04:02.34 I think that's very, very 00:04:02.34\00:04:03.67 important. 00:04:03.67\00:04:04.64 >> So the colour of the car, 00:04:04.64\00:04:05.81 the make of the car 00:04:05.81\00:04:06.81 really isn't the issue. 00:04:06.81\00:04:08.14 >> That is correct, you know, 00:04:08.14\00:04:09.41 because the lowest cost 00:04:09.41\00:04:10.55 per kilometre. 00:04:10.55\00:04:11.55 When we fly, we're just 00:04:11.55\00:04:13.48 exchanging dollars for 00:04:13.48\00:04:14.65 kilometres fast. 00:04:14.65\00:04:16.85 And so when you own a vehicle, 00:04:16.85\00:04:19.35 you need to think of that 00:04:19.35\00:04:20.39 in the same relevant context 00:04:20.39\00:04:22.52 that you're just exchanging 00:04:22.52\00:04:24.26 dollars for kilometres. 00:04:24.26\00:04:26.43 >> Some people may have 00:04:28.73\00:04:30.13 an emotional connection 00:04:30.13\00:04:31.73 to getting a specific car. 00:04:31.73\00:04:33.70 For myself, I knew I just wanted 00:04:33.70\00:04:35.44 something affordable and safe. 00:04:35.44\00:04:36.97 But I do have some friends that 00:04:36.97\00:04:38.94 have their eye on a 00:04:38.94\00:04:39.97 very specific car model, 00:04:39.97\00:04:41.88 year, engine type. 00:04:41.88\00:04:43.65 There's a lot that comes into 00:04:43.65\00:04:45.78 buying a car, 00:04:45.78\00:04:46.82 and for some people it can be 00:04:46.82\00:04:47.92 very emotional for them. 00:04:47.92\00:04:49.45 It's their dream, right? 00:04:49.45\00:04:50.62 They've thought about it 00:04:50.62\00:04:51.65 since they were a little kid. 00:04:51.65\00:04:52.99 For most girls, they think about 00:04:52.99\00:04:54.32 their wedding day, but for 00:04:54.32\00:04:55.99 most little boys, a lot of guys 00:04:55.99\00:04:57.63 that I know, they have a 00:04:57.63\00:04:58.66 very specific type of car 00:04:58.66\00:05:00.16 that they want. 00:05:00.16\00:05:01.16 And understandably so. 00:05:01.16\00:05:02.36 Those are the toys that they 00:05:02.36\00:05:03.37 play with, and when they become 00:05:03.37\00:05:04.67 an adult, it's something that 00:05:04.67\00:05:06.53 you're gonna be seen in, 00:05:06.53\00:05:07.64 it's something that your peers 00:05:07.64\00:05:08.77 see you driving, right? 00:05:08.77\00:05:09.77 So it's not only the 00:05:09.77\00:05:10.97 transportation but the status 00:05:10.97\00:05:12.61 that also comes with a car. 00:05:12.61\00:05:14.74 But realistically, you have to 00:05:14.74\00:05:17.01 let the numbers 00:05:17.01\00:05:18.01 in your bank account 00:05:18.01\00:05:19.05 really speak for itself. 00:05:19.05\00:05:20.45 You can have this desire 00:05:20.45\00:05:22.05 to want a really expensive car, 00:05:22.05\00:05:23.49 but can your wallet afford it? 00:05:23.49\00:05:25.29 Can it handle that? 00:05:25.29\00:05:26.82 And if it can't, you're gonna 00:05:26.82\00:05:28.46 have to make that tough 00:05:28.46\00:05:29.89 but humble decision 00:05:29.89\00:05:32.39 and really check yourself 00:05:32.39\00:05:33.56 and say, "Okay, this is just 00:05:33.56\00:05:35.00 not something that's within 00:05:35.00\00:05:36.10 my means right now. 00:05:36.10\00:05:37.53 I have to be realistic about 00:05:37.53\00:05:38.93 what I can afford. 00:05:38.93\00:05:40.44 I don't wanna dig myself into a 00:05:40.44\00:05:42.60 debt hole trying to get 00:05:42.60\00:05:43.84 something that I love. 00:05:43.84\00:05:45.14 >> I remember when I was gonna 00:05:47.14\00:05:48.21 make a purchase of a car. 00:05:48.21\00:05:49.71 I think that was a major, major 00:05:49.71\00:05:51.51 thing for me. 00:05:51.51\00:05:52.81 I went to a friend and he said 00:05:52.81\00:05:54.35 to me, "What you're thinking of 00:05:54.35\00:05:56.35 is the type of car." 00:05:56.35\00:05:58.02 He said, "I'm a mechanic 00:05:58.02\00:06:00.06 and I can tell you this, 00:06:00.06\00:06:01.56 this type of car you're 00:06:01.56\00:06:02.59 talking about is gonna 00:06:02.59\00:06:03.63 cost you more in the end. 00:06:03.63\00:06:04.96 And all you need is a vehicle 00:06:04.96\00:06:06.43 that's reliable." 00:06:06.43\00:06:07.76 And so he told me 00:06:07.76\00:06:08.80 the right vehicle to get. 00:06:08.80\00:06:10.60 And I've continued to tell 00:06:10.60\00:06:12.10 my daughters, "You can get 00:06:12.10\00:06:13.13 any car you want, 00:06:13.13\00:06:14.17 just get this one. 00:06:14.17\00:06:15.20 Okay?" 00:06:15.20\00:06:16.07 >> You know, you're right. 00:06:16.07\00:06:17.34 For some people it becomes 00:06:17.34\00:06:18.67 a very emotional decision, 00:06:18.67\00:06:20.08 you know, of which vehicle 00:06:20.08\00:06:21.71 to buy. 00:06:21.71\00:06:23.35 And it's intimidating. 00:06:23.35\00:06:25.01 You know, really it is. 00:06:25.01\00:06:26.25 And so if doing and going 00:06:26.25\00:06:28.42 through that negotiation process 00:06:28.42\00:06:30.49 is intimidating for you, 00:06:30.49\00:06:31.92 you don't like that, 00:06:31.92\00:06:32.95 you don't enjoy that, 00:06:32.95\00:06:34.56 you know, bring someone 00:06:34.56\00:06:35.56 along with you 00:06:35.56\00:06:36.62 that maybe has more experience 00:06:36.62\00:06:37.93 or maybe enjoys that experience. 00:06:37.93\00:06:40.26 A number of years ago, 00:06:41.30\00:06:43.40 there was a lady and she 00:06:43.40\00:06:45.13 said to me, she said, 00:06:45.13\00:06:46.17 "Sven, I need to buy a vehicle. 00:06:46.17\00:06:48.77 I wanna buy a used vehicle. 00:06:48.77\00:06:50.07 I know exactly what I want, 00:06:50.07\00:06:51.47 I know exactly what I need and, 00:06:51.47\00:06:54.44 but I'm feeling a little bit 00:06:54.44\00:06:55.51 intimidated by going to the 00:06:55.51\00:06:56.71 dealership and negotiating 00:06:56.71\00:06:58.28 everything. 00:06:58.28\00:06:59.28 Would you come with me?" 00:06:59.28\00:07:01.02 And so I love doing that. 00:07:01.02\00:07:03.28 So I said absolutely, like, 00:07:03.28\00:07:05.35 who does not wanna go 00:07:05.35\00:07:06.65 test drive cars? 00:07:06.65\00:07:08.39 And so I said, "Yes, 00:07:08.39\00:07:09.46 I will come with you." 00:07:09.46\00:07:11.09 And I said, "You show me 00:07:11.09\00:07:12.53 which vehicle you want, 00:07:12.53\00:07:13.86 and then we'll get the 00:07:13.86\00:07:14.86 salesperson to come out and 00:07:14.86\00:07:15.86 salesperson to come out and 00:07:15.86\00:07:15.90 we'll start in the 00:07:16.36\00:07:16.90 negotiating process." 00:07:16.90\00:07:17.93 And we're gonna negotiate on 00:07:17.93\00:07:19.10 three things. 00:07:19.10\00:07:20.14 So for her, 00:07:20.14\00:07:21.57 she was going to trade in 00:07:21.57\00:07:23.00 her vehicle that she was 00:07:23.00\00:07:24.67 currently driving. 00:07:24.67\00:07:25.67 Now, ultimately I think you'll 00:07:25.67\00:07:26.68 do a little better if you can 00:07:26.68\00:07:27.98 do a private sale. 00:07:27.98\00:07:29.68 But seems she didn't like 00:07:29.68\00:07:31.45 that piece, for her, 00:07:31.45\00:07:32.85 trading in was best. 00:07:32.85\00:07:33.72 So I was gonna help her 00:07:33.72\00:07:35.55 negotiate the trade-in price, 00:07:35.55\00:07:38.09 the purchase price of the 00:07:38.09\00:07:40.32 used vehicle, new to her, 00:07:40.32\00:07:42.16 that she was going to buy, 00:07:42.16\00:07:43.43 and then also negotiate 00:07:43.43\00:07:44.76 the interest rate that she was 00:07:44.76\00:07:46.09 going to have to pay. 00:07:46.09\00:07:47.76 And so she found the vehicle 00:07:47.76\00:07:49.73 that she wanted, 00:07:49.73\00:07:50.77 that she needed, that fit her 00:07:50.77\00:07:51.90 needs for the lowest cost 00:07:51.90\00:07:53.77 per kilometre for her. 00:07:53.77\00:07:55.70 And it took about an hour 00:07:55.70\00:07:57.31 with the salesperson 00:07:57.31\00:07:58.37 and we negotiated very strongly 00:07:58.37\00:08:01.24 the sales price of her car. 00:08:01.24\00:08:03.65 And then we also negotiated 00:08:03.65\00:08:06.05 the purchase price, 00:08:06.05\00:08:07.42 and then we negotiated 00:08:07.42\00:08:09.12 the interest rate and we got 00:08:09.12\00:08:10.12 a little bit better on the 00:08:10.12\00:08:11.22 interest than they were going to 00:08:11.22\00:08:13.19 offer at the beginning. 00:08:13.19\00:08:14.86 And then we found out what her 00:08:14.86\00:08:16.19 monthly payment was going to be. 00:08:16.19\00:08:18.73 And so I said to the 00:08:18.73\00:08:19.76 salesperson, I said, "You know, 00:08:19.76\00:08:21.93 if you could lower that payment 00:08:21.93\00:08:23.26 by $10 a month, I'm not sure 00:08:23.26\00:08:25.20 how you're gonna do it, but 00:08:25.20\00:08:26.53 whether it's going to be 00:08:26.53\00:08:27.60 increase the value of the 00:08:27.60\00:08:29.20 trade-in or decrease the price 00:08:29.20\00:08:31.91 of the sale of the vehicle. 00:08:31.91\00:08:33.68 But if you can lower that by 00:08:33.68\00:08:34.74 $10 a month, then I think we can 00:08:34.74\00:08:36.75 go ahead and purchase 00:08:36.75\00:08:38.01 the vehicle. 00:08:38.01\00:08:39.35 And, you know, I felt good 00:08:39.35\00:08:42.22 after we had negotiated 00:08:42.22\00:08:43.52 all this. 00:08:43.52\00:08:44.65 Unfortunately, the individual 00:08:44.65\00:08:45.99 that I was with 00:08:45.99\00:08:48.22 wanted to give the salesperson 00:08:48.22\00:08:49.56 an extra thousand dollars 00:08:49.56\00:08:50.66 because they felt so badly 00:08:50.66\00:08:52.06 for them. 00:08:52.06\00:08:53.13 But, just remember that they are 00:08:53.13\00:08:54.93 making a profit. 00:08:54.93\00:08:55.90 They're making a profit when 00:08:55.90\00:08:56.90 they buy your car, 00:08:56.90\00:08:57.93 they're making a profit 00:08:57.93\00:08:58.93 when they sell you the car, 00:08:58.93\00:08:59.93 and they're also making a profit 00:08:59.93\00:09:01.10 on the interest rate. 00:09:01.10\00:09:02.10 [MIKE] Mmmm. 00:09:02.10\00:09:02.57 So she didn't give him 00:09:02.64\00:09:03.51 an extra thousand dollars. 00:09:03.51\00:09:04.51 >> She didn't, no. 00:09:04.51\00:09:05.51 She didn't. 00:09:05.51\00:09:06.44 But nor has she ever asked me 00:09:06.44\00:09:07.38 to come with her again 00:09:07.38\00:09:08.78 to purchase another vehicle. 00:09:08.78\00:09:10.61 >> So when you're making those 00:09:10.61\00:09:12.05 negotiations, you're always 00:09:12.05\00:09:13.48 in the driver's seat because 00:09:13.48\00:09:14.58 you're the person 00:09:14.58\00:09:16.05 paying the money. 00:09:16.05\00:09:17.12 >> That's right. 00:09:17.12\00:09:18.15 When you were negotiating 00:09:18.15\00:09:19.15 for anything, you know, 00:09:19.15\00:09:20.16 whether it's, you know, 00:09:20.16\00:09:21.66 an ad on Facebook that you're, 00:09:21.66\00:09:23.46 that you wanna buy something 00:09:23.46\00:09:24.46 small or a car or a home, 00:09:24.46\00:09:26.53 always feel that you are 00:09:26.53\00:09:28.90 in the driver's seat, because 00:09:28.90\00:09:30.70 if the deal isn't right for you, 00:09:30.70\00:09:32.13 you can always walk away. 00:09:32.13\00:09:34.14 And walk away because 00:09:34.14\00:09:35.44 the worst thing to have is 00:09:35.44\00:09:37.17 buyer's remorse. 00:09:37.17\00:09:38.17 You know, we've all had that, 00:09:38.17\00:09:39.97 and hopefully it's only with, 00:09:39.97\00:09:41.28 you know, a 25 or $50 item, 00:09:41.28\00:09:44.25 not a, you know, 00:09:44.25\00:09:46.51 20 to $30,000 a car 00:09:46.51\00:09:48.95 or more when you buy a house. 00:09:48.95\00:09:50.32 You don't wanna have that 00:09:50.32\00:09:51.69 buyer's remorse, because that 00:09:51.69\00:09:52.72 will stay with you much longer 00:09:52.72\00:09:54.56 for those major purchases. 00:09:54.56\00:09:56.06 >> There's a lot that comes into 00:09:58.36\00:09:59.63 play when purchasing a car, 00:09:59.63\00:10:01.63 especially when it's 00:10:01.63\00:10:02.66 your first car ever. 00:10:02.66\00:10:04.30 This school year was 00:10:04.30\00:10:05.57 my first time ever getting 00:10:05.57\00:10:07.20 a vehicle for myself. 00:10:07.20\00:10:08.90 I used to drive the car 00:10:08.90\00:10:10.01 that my parents had, but now 00:10:10.01\00:10:11.84 it was finally my turn to make 00:10:11.84\00:10:14.24 a purchase like this. 00:10:14.24\00:10:15.31 And it's definitely been the 00:10:15.31\00:10:16.78 biggest purchase I've had to 00:10:16.78\00:10:17.98 make up until this point 00:10:17.98\00:10:19.38 in my life. 00:10:19.38\00:10:21.08 And looking into it, 00:10:21.08\00:10:22.22 there's actually a lot more that 00:10:22.22\00:10:23.85 come into play than you can 00:10:23.85\00:10:25.62 realize at the beginning. 00:10:25.62\00:10:27.19 Sometimes we think, Okay, a car. 00:10:27.19\00:10:29.62 Just an initial purchase, 00:10:29.62\00:10:30.99 I go, I buy it, and that's it. 00:10:30.99\00:10:33.43 I have my car. 00:10:33.43\00:10:34.40 All is well. 00:10:34.40\00:10:35.60 All is well, 00:10:35.60\00:10:36.73 but now you have insurance 00:10:36.73\00:10:38.63 that you have to pay for. 00:10:38.63\00:10:40.14 And if you don't have the best 00:10:40.14\00:10:41.27 track record on the road, 00:10:41.27\00:10:42.57 like maybe you've run 00:10:42.57\00:10:44.11 a couple red lights, or you have 00:10:44.11\00:10:45.51 a couple speeding tickets, 00:10:45.51\00:10:46.94 That can boost up 00:10:46.94\00:10:47.98 your insurance. 00:10:47.98\00:10:49.04 There's gas that you have to 00:10:49.04\00:10:50.31 pay for, there's maintenance 00:10:50.31\00:10:51.88 of your car, there's car washes. 00:10:51.88\00:10:53.85 I mean, all of these things 00:10:53.85\00:10:55.72 are additional expenses to that 00:10:55.72\00:10:55.88 are additional expenses to that 00:10:56.42\00:10:58.22 initial price that you thought 00:10:58.22\00:11:00.06 you were just paying on 00:11:00.06\00:11:01.42 your car. 00:11:01.42\00:11:02.42 So there's a lot that 00:11:02.42\00:11:03.69 comes into play. 00:11:03.69\00:11:04.69 So you need to really take 00:11:04.69\00:11:06.33 your time with a purchase 00:11:06.33\00:11:07.56 this large, especially as a 00:11:07.56\00:11:08.10 this large, especially as 00:11:08.20\00:11:08.80 a young person. 00:11:08.80\00:11:10.07 You don't want to rush, 00:11:10.07\00:11:11.50 especially since it's something 00:11:11.50\00:11:13.77 that's gonna be a chunk 00:11:13.77\00:11:15.17 coming out of your bank account. 00:11:15.17\00:11:16.94 So I've actually never been 00:11:16.94\00:11:18.04 advised to buy a new car. 00:11:18.04\00:11:18.54 advised to buy a new car. 00:11:18.67\00:11:19.91 I've never had anyone in my life 00:11:19.91\00:11:21.44 tell me that it was a good idea. 00:11:21.44\00:11:23.71 So there's lots of places 00:11:23.71\00:11:25.21 that you can look to find 00:11:25.21\00:11:26.35 a second-hand car, 00:11:26.35\00:11:27.68 but one that's still safe. 00:11:27.68\00:11:29.22 I personally got my car from 00:11:29.22\00:11:31.22 Facebook Marketplace for 00:11:31.22\00:11:32.45 a reasonable price, 00:11:32.45\00:11:33.99 and it's safe. 00:11:33.99\00:11:35.09 I just had to get the tires 00:11:35.09\00:11:36.46 changed on it to winter tires, 00:11:36.46\00:11:38.63 get a couple of maintenance 00:11:38.63\00:11:39.76 things fixed, but it gets me 00:11:39.76\00:11:41.53 from point A to point B, 00:11:41.53\00:11:42.96 and that's the purpose of a car, 00:11:42.96\00:11:44.40 right, it's for transportation. 00:11:44.40\00:11:45.87 It's not for the luxury of it, 00:11:45.87\00:11:47.87 but just to get you 00:11:47.87\00:11:49.10 from one place to the other. 00:11:49.10\00:11:50.77 So as long as you're able to 00:11:50.77\00:11:51.81 do that, then the car is 00:11:51.81\00:11:53.01 serving its purpose. 00:11:53.01\00:11:54.11 >> Sven, what about someone 00:11:56.88\00:11:58.18 who doesn't feel comfortable 00:11:58.18\00:12:00.38 getting a used car, 00:12:00.38\00:12:02.05 but would actually like to 00:12:02.05\00:12:03.22 purchase a brand new car? 00:12:03.22\00:12:05.82 How can they plan ahead 00:12:06.35\00:12:08.42 to not have car payments, 00:12:08.42\00:12:10.16 like, on and on and on 00:12:10.16\00:12:11.86 into the future? 00:12:11.86\00:12:13.13 >> That's a good question. 00:12:14.30\00:12:15.26 And just as a sidebar, 00:12:15.26\00:12:17.50 I pose this question 00:12:17.50\00:12:18.83 to a number of people, you know, 00:12:18.83\00:12:20.87 come up with what you feel 00:12:20.87\00:12:23.34 is the car that is the least 00:12:23.34\00:12:24.87 cost per kilometre, you know? 00:12:24.87\00:12:26.21 So they scoured Facebook for 00:12:26.21\00:12:27.88 what they could figure out 00:12:27.88\00:12:28.91 what was the lowest cost 00:12:28.91\00:12:30.05 per kilometre. 00:12:30.05\00:12:31.08 So we did an analysis. 00:12:31.08\00:12:32.28 And there are some new cars 00:12:32.28\00:12:34.08 out there that are neck and neck 00:12:34.08\00:12:36.48 with the best deals that you can 00:12:36.48\00:12:37.92 find for a cost per kilometre. 00:12:37.92\00:12:39.42 So don't just think because 00:12:39.42\00:12:40.92 you're buying a new vehicle 00:12:40.92\00:12:42.12 that you're actually 00:12:42.12\00:12:43.12 spending more. 00:12:43.12\00:12:44.26 It might be a 00:12:44.26\00:12:45.26 very good purchase, 00:12:45.26\00:12:46.63 a wise purchase. 00:12:46.63\00:12:48.10 But yes, you're right. 00:12:48.10\00:12:49.73 René, when you buy a new car... 00:12:49.73\00:12:52.07 ...you might be making payments 00:12:53.13\00:12:54.70 for the next five years, 00:12:54.70\00:12:56.27 but in your mind, know that 00:12:56.27\00:12:57.81 you're gonna keep that car 00:12:57.81\00:12:58.91 for at least ten years. 00:12:58.91\00:13:00.78 And then after you've finished 00:13:00.78\00:13:02.34 making your payments to the 00:13:02.34\00:13:03.48 dealership and the car is 00:13:03.48\00:13:05.18 fully paid, instead of taking 00:13:05.18\00:13:07.35 that payment and absorbing it 00:13:07.35\00:13:09.28 into your monthly income, 00:13:09.28\00:13:11.29 continue making that payment, 00:13:11.29\00:13:13.59 but to yourself 00:13:13.59\00:13:14.96 into your future needs fund. 00:13:14.96\00:13:17.43 So every month you take that 00:13:17.43\00:13:18.69 same payment and put it into 00:13:18.69\00:13:20.73 your own fund. 00:13:20.73\00:13:22.73 Because then after ten years, 00:13:22.73\00:13:24.93 you will have five years 00:13:24.93\00:13:26.84 where you have put money 00:13:26.84\00:13:27.84 into that fund. 00:13:27.84\00:13:28.94 So you should be pretty close 00:13:28.94\00:13:30.74 to being able to pay cash 00:13:30.74\00:13:32.47 for your next new car. 00:13:32.47\00:13:34.78 >> That's really good advice. 00:13:34.78\00:13:36.58 So let's talk about the 00:13:36.58\00:13:37.61 big major purchase, the house. 00:13:37.61\00:13:40.32 I know it's good 00:13:40.32\00:13:41.35 and probably best to own 00:13:41.35\00:13:42.65 your own home, but sometimes 00:13:42.65\00:13:44.19 it might be better to rent. 00:13:44.19\00:13:46.32 When would we know 00:13:46.32\00:13:47.39 whether we should rent 00:13:47.39\00:13:48.49 instead of buying? 00:13:48.49\00:13:49.56 >> So we know that we have to 00:13:50.53\00:13:51.93 rent if we don't have 00:13:51.93\00:13:53.60 the down payment, 00:13:53.60\00:13:54.83 you know, because we have 00:13:54.83\00:13:55.83 no option. 00:13:55.83\00:13:56.87 We are only available to us 00:13:56.87\00:13:58.60 is to rent. 00:13:58.60\00:14:00.04 But, you know, there are 00:14:00.04\00:14:01.04 many jobs that we take, 00:14:01.04\00:14:02.77 especially, you know, 00:14:02.77\00:14:03.84 in our early working years 00:14:03.84\00:14:05.14 of our career where we might be 00:14:05.14\00:14:06.98 taking a one-year contract, 00:14:06.98\00:14:08.28 a mat leave, 00:14:08.28\00:14:09.28 and so we're only gonna be 00:14:09.28\00:14:10.31 in the community for a year. 00:14:10.31\00:14:12.01 And so on those situations, 00:14:12.01\00:14:13.98 yeah, you should be 00:14:13.98\00:14:15.92 wanting to rent. 00:14:15.92\00:14:17.09 >> Renting a place can be 00:14:19.35\00:14:20.82 a good option for people, 00:14:20.82\00:14:22.32 especially when you're young, 00:14:22.32\00:14:23.89 you're single, or maybe even 00:14:23.89\00:14:25.73 newly married, 00:14:25.73\00:14:26.93 especially in the time of life 00:14:26.93\00:14:28.50 maybe where you're living in a 00:14:28.50\00:14:29.60 downtown area, your job is 00:14:29.60\00:14:32.37 in the mix of all these 00:14:32.37\00:14:33.44 tall buildings, you know, 00:14:33.44\00:14:34.60 you want an easy way to get to 00:14:34.60\00:14:35.87 work, a place that you're not 00:14:35.87\00:14:37.24 going to have to drive 00:14:37.24\00:14:38.57 long distances to, 00:14:38.57\00:14:39.77 to commute to your workspace. 00:14:39.77\00:14:41.58 So for me personally, I'm going 00:14:41.58\00:14:43.21 to be starting work in 00:14:43.21\00:14:44.31 downtown Edmonton. 00:14:44.31\00:14:45.75 So it's realistic and it 00:14:45.75\00:14:47.35 makes the most sense for me 00:14:47.35\00:14:48.55 to live in downtown as well. 00:14:48.55\00:14:50.62 And right now I don't have kids, 00:14:50.62\00:14:52.15 I'm not married, 00:14:52.15\00:14:53.32 so I don't need a space for 00:14:53.32\00:14:54.52 my kids to run around 00:14:54.52\00:14:55.66 on the lawn, to have a swing 00:14:55.66\00:14:57.13 hanging from the tree. 00:14:57.13\00:14:58.36 It's just not the season 00:14:58.36\00:14:59.46 that I'm in right now. 00:14:59.46\00:15:00.83 So evaluate where you are 00:15:00.83\00:15:02.80 in life right now, 00:15:02.80\00:15:03.26 in life right now, 00:15:03.33\00:15:03.87 what you can afford 00:15:03.87\00:15:05.20 and spend accordingly, right? 00:15:05.20\00:15:08.00 And I've actually 00:15:08.00\00:15:09.04 been advised recently that 00:15:09.04\00:15:09.77 been advised recently that 00:15:09.77\00:15:10.74 when you're newly married, 00:15:10.74\00:15:12.17 don't buy a house one month 00:15:12.17\00:15:13.74 into your marriage, you know. 00:15:13.74\00:15:15.14 You're still learning how to 00:15:15.14\00:15:16.34 coexist with each other, 00:15:16.34\00:15:17.98 what each other's living quirks 00:15:17.98\00:15:19.35 are alike, right? 00:15:19.35\00:15:20.48 So wait around a year 00:15:20.48\00:15:21.85 before you start looking into 00:15:21.85\00:15:23.25 a house, and then 00:15:23.25\00:15:24.32 once you go from there, 00:15:24.32\00:15:25.35 you can see what both of you 00:15:25.35\00:15:26.49 like, because it's such 00:15:26.49\00:15:27.82 a huge purchase. 00:15:27.82\00:15:29.02 It's not like you can 00:15:29.02\00:15:30.29 buy a house and say, "Okay, no. 00:15:30.29\00:15:31.63 I have the receipt, 00:15:31.63\00:15:32.66 I wanna return it." 00:15:32.66\00:15:33.66 It doesn't work like that, 00:15:33.66\00:15:34.66 right? 00:15:34.66\00:15:35.50 So something as large and 00:15:35.50\00:15:36.70 as big as this type of decision 00:15:36.70\00:15:39.40 really needs prayer, advice from 00:15:39.40\00:15:42.07 those who have come before you 00:15:42.07\00:15:43.24 those who have come before you 00:15:43.24\00:15:43.71 and just really seek 00:15:43.77\00:15:44.94 God's wisdom in His Word. 00:15:44.94\00:15:46.71 You can find advice 00:15:46.71\00:15:47.74 in there as well. 00:15:47.74\00:15:48.78 So seek help, take your time. 00:15:48.78\00:15:51.35 There's really no rush yet. 00:15:51.35\00:15:52.81 >> Sven, when do you think 00:15:55.42\00:15:57.22 a person can look into 00:15:57.22\00:15:59.02 the mirror and say, 00:15:59.02\00:16:00.99 "I'm now ready to buy a house?" 00:16:00.99\00:16:03.46 What kind of conditions 00:16:03.46\00:16:05.86 do we need to meet 00:16:05.86\00:16:06.86 in order to say, 00:16:06.86\00:16:07.86 "Okay, I'm ready. 00:16:07.86\00:16:09.06 I can get my first home." 00:16:09.06\00:16:11.00 >> So a number of factors 00:16:12.30\00:16:13.37 have to be present. 00:16:13.37\00:16:14.60 You know, first and foremost, 00:16:15.67\00:16:16.71 we have to have our downpayment 00:16:16.71\00:16:18.67 ready, you know, and then we 00:16:18.67\00:16:20.08 go to the bank and become 00:16:20.08\00:16:21.14 pre-approved, that we know 00:16:21.14\00:16:22.81 how much our purchase 00:16:22.81\00:16:24.88 could be. 00:16:24.88\00:16:26.15 And secondly, we need to have 00:16:26.15\00:16:27.15 an emergency fund in place 00:16:27.15\00:16:28.78 because we are now 00:16:28.78\00:16:29.85 purchasing a home where, 00:16:29.85\00:16:32.62 you know, who knows, 00:16:32.62\00:16:34.22 an appliance might fail. 00:16:34.22\00:16:36.06 And so if we don't have 00:16:36.06\00:16:37.09 an emergency fund in place, 00:16:37.09\00:16:38.69 we are going to be forced to be 00:16:38.69\00:16:40.46 using plastic 00:16:40.46\00:16:41.80 to pay for some of these items. 00:16:41.80\00:16:43.03 So we want to have that present. 00:16:43.03\00:16:45.67 Also our job. 00:16:46.17\00:16:47.17 We need to know that we 00:16:47.17\00:16:48.64 are going to be in this area. 00:16:48.64\00:16:50.91 We wanna place down roots 00:16:50.91\00:16:52.84 and we're gonna- 00:16:52.84\00:16:54.34 we wanna be there for a while. 00:16:54.34\00:16:55.68 And so therefore, that is when 00:16:55.68\00:16:57.48 I feel that you can start 00:16:57.48\00:16:58.75 in earnest to look to buy 00:16:58.75\00:17:01.22 your first home. 00:17:01.22\00:17:02.32 >> Take your time. 00:17:04.85\00:17:06.29 We often feel like we're 00:17:06.29\00:17:07.56 being chased, 00:17:07.56\00:17:08.59 especially as young people, 00:17:08.59\00:17:09.62 to have our lives together by, 00:17:09.62\00:17:11.23 let's say, the age of 25. 00:17:11.23\00:17:12.93 If you're not married by 00:17:12.93\00:17:13.96 this time, if you don't have 00:17:13.96\00:17:14.93 a house, by this time, 00:17:14.93\00:17:15.96 you're behind the pack. 00:17:15.96\00:17:17.13 But everyone's journey 00:17:17.13\00:17:18.77 is different. 00:17:18.77\00:17:19.77 So looking at what 00:17:19.77\00:17:21.37 you can afford right now, 00:17:21.37\00:17:23.47 that's okay. 00:17:23.47\00:17:24.51 You know, if it's something 00:17:24.51\00:17:25.51 smaller than you anticipated 00:17:25.51\00:17:26.84 as a child, that's okay. 00:17:26.84\00:17:28.18 Situations will change. 00:17:28.18\00:17:30.38 Emergencies will arise. 00:17:30.38\00:17:31.68 You know, things that you 00:17:31.68\00:17:32.71 never saw coming 00:17:32.71\00:17:33.82 can come up in your life. 00:17:33.82\00:17:35.02 So you have to really take into 00:17:35.02\00:17:36.65 consideration how much you can 00:17:36.65\00:17:38.45 afford right now. 00:17:38.45\00:17:39.72 So if right now a house isn't 00:17:39.72\00:17:41.49 within your budget, that's okay. 00:17:41.49\00:17:43.89 And oftentimes as young people, 00:17:43.89\00:17:45.56 we can compare ourselves. 00:17:45.56\00:17:47.36 Someone your age may 00:17:47.36\00:17:48.63 have a house right now and 00:17:48.63\00:17:49.60 you may be still renting 00:17:49.60\00:17:50.70 an apartment, but it's what's 00:17:50.70\00:17:52.60 working for you right now 00:17:52.60\00:17:53.70 and you don't know their 00:17:53.70\00:17:54.74 specific situation. 00:17:54.74\00:17:56.27 Maybe they're just able to 00:17:56.27\00:17:57.37 afford it because the job 00:17:57.37\00:17:58.97 that they got allows for it. 00:17:58.97\00:18:00.48 But right now, where you are at, 00:18:00.48\00:18:02.24 do what you can afford 00:18:02.24\00:18:03.88 and be at peace knowing that 00:18:03.88\00:18:05.91 it's the right decision to 00:18:05.91\00:18:07.58 not spend more than 00:18:07.58\00:18:08.58 you can handle. 00:18:08.58\00:18:09.75 >> Let's talk about the 00:18:12.29\00:18:13.39 type of home. 00:18:13.39\00:18:14.86 Give us some ideas of 00:18:14.86\00:18:16.36 what are your options. 00:18:16.36\00:18:18.43 >> So in today's market, I mean, 00:18:18.43\00:18:19.73 homes are expensive. 00:18:19.73\00:18:21.63 And so, you know, it's not like 00:18:21.63\00:18:23.93 how it was a number of 00:18:23.93\00:18:25.37 years ago. 00:18:25.37\00:18:26.57 For many people, 00:18:26.57\00:18:27.67 their starter home 00:18:27.67\00:18:28.87 is going to be in a condo 00:18:28.87\00:18:30.74 or a townhouse, just because, 00:18:30.74\00:18:32.54 you know, the initial 00:18:32.54\00:18:34.34 purchase price is gonna be 00:18:34.34\00:18:35.41 considerably less as opposed to 00:18:35.41\00:18:37.58 moving into a detached home. 00:18:37.58\00:18:39.95 So maybe that's where you're 00:18:39.95\00:18:40.98 going to have to start to look. 00:18:40.98\00:18:42.92 You know, and for many of you, 00:18:42.92\00:18:44.22 this might be your second 00:18:44.22\00:18:45.39 or third home. 00:18:45.39\00:18:46.52 You have lived in a condo, 00:18:46.52\00:18:48.16 a townhouse. 00:18:48.16\00:18:49.32 And so now maybe you'll be 00:18:49.32\00:18:50.43 looking at a detached home 00:18:50.43\00:18:51.66 and you might be thinking, 00:18:51.66\00:18:52.66 You know, I might want this home 00:18:52.66\00:18:54.96 to be income generating, so- 00:18:54.96\00:18:57.77 to help pay for the mortgage. 00:18:57.77\00:18:58.80 So you might be looking 00:18:58.80\00:18:59.83 at a home, you know, with a... 00:18:59.83\00:19:01.37 ...a suite, you know, 00:19:02.60\00:19:03.71 a rental basement suite. 00:19:03.71\00:19:04.87 >> Is all debt bad? 00:19:06.84\00:19:09.14 The simple answer is 00:19:09.14\00:19:10.38 absolutely not. 00:19:10.38\00:19:12.15 Depending upon what the 00:19:14.72\00:19:15.98 conditions are... 00:19:15.98\00:19:17.25 ...you're able to use the debt 00:19:19.92\00:19:22.89 to purchase something... 00:19:22.89\00:19:24.49 ...that is going to 00:19:26.13\00:19:27.23 grow in value. 00:19:27.23\00:19:28.76 And once you've made 00:19:30.00\00:19:31.07 that choice, 00:19:31.07\00:19:32.23 now the next question... 00:19:32.23\00:19:34.40 ...that's, again, kind of 00:19:35.27\00:19:37.24 going to a whole nother 00:19:37.24\00:19:38.47 level is... 00:19:38.47\00:19:39.54 ...what's the most 00:19:41.18\00:19:42.21 effective way, once I have it... 00:19:42.21\00:19:44.18 ...to minimize the interest 00:19:45.68\00:19:47.72 that I'm going to pay 00:19:47.72\00:19:49.58 for this item. 00:19:49.58\00:19:50.75 Now, if I'm gonna run up debt... 00:19:52.32\00:19:54.89 ...for stuff that has 00:19:55.89\00:19:56.99 absolutely no value to it... 00:19:56.99\00:19:59.03 ...then that I wanna 00:20:00.60\00:20:02.60 stay away from. 00:20:02.60\00:20:03.67 But you have to be, 00:20:05.13\00:20:06.40 you really have to be 00:20:06.40\00:20:07.60 looking at... 00:20:07.60\00:20:08.80 ...what are you gonna to be- 00:20:10.51\00:20:12.71 what's the debt for? 00:20:12.71\00:20:14.34 Is it going to provide value? 00:20:15.51\00:20:17.51 Does it contribute to, again, 00:20:17.51\00:20:20.15 where you wanna be 00:20:20.15\00:20:22.52 down the road? 00:20:22.52\00:20:23.55 >> Sven, can you give us 00:20:26.42\00:20:27.52 any advice on how to- 00:20:27.52\00:20:29.72 on how we can decrease 00:20:29.72\00:20:31.29 the interest rates 00:20:31.29\00:20:32.43 on these major purchases? 00:20:32.43\00:20:34.36 >> Sure, let's talk about 00:20:35.60\00:20:36.63 two things we talk about 00:20:36.63\00:20:37.63 interest rate. 00:20:37.63\00:20:38.63 Let's talk about decreasing 00:20:38.63\00:20:39.73 the interest rate, you know, 00:20:39.73\00:20:40.80 on our home loan. 00:20:40.80\00:20:42.64 And we can advertise for that 00:20:42.64\00:20:45.47 and we maybe go see 00:20:45.47\00:20:46.91 a mortgage broker. 00:20:46.91\00:20:47.94 We ask our realtor 00:20:47.94\00:20:49.21 and they will canvas 00:20:49.21\00:20:50.41 our mortgage through a 00:20:50.41\00:20:51.58 mortgage broker 00:20:51.58\00:20:52.98 and they will then see and find 00:20:52.98\00:20:55.65 the best lending institution 00:20:55.65\00:20:58.49 that will give you 00:20:58.49\00:20:59.75 the lowest rate. 00:20:59.75\00:21:01.42 So that's one half 00:21:01.42\00:21:02.42 of the equation. 00:21:02.42\00:21:03.46 The other half of the equation 00:21:03.46\00:21:04.49 is over the term of the 00:21:04.49\00:21:05.89 mortgage, over the life of 00:21:05.89\00:21:06.96 the mortgage, to be able to pay 00:21:06.96\00:21:08.20 the least amount of interest. 00:21:08.20\00:21:10.63 And there are a number of 00:21:10.63\00:21:11.97 strategies in being able 00:21:11.97\00:21:13.64 to do that, but probably 00:21:13.64\00:21:15.07 the most common strategy is 00:21:15.07\00:21:16.67 instead of paying monthly 00:21:16.67\00:21:18.94 on your mortgage, 00:21:18.94\00:21:20.08 is to check the box that 00:21:20.08\00:21:21.48 you're gonna pay 00:21:21.48\00:21:22.78 accelerated biweekly 00:21:22.78\00:21:24.58 and keep this payment the same 00:21:24.58\00:21:26.82 as you would for a monthly, 00:21:26.82\00:21:27.85 so you just cut it in half. 00:21:27.85\00:21:29.32 So if your payment 00:21:29.32\00:21:30.32 is gonna be $1,000, 00:21:30.32\00:21:31.69 every two weeks accelerated, 00:21:31.69\00:21:33.19 you'll pay $500. 00:21:33.19\00:21:35.06 So yes, a little bit 00:21:35.92\00:21:37.73 careful planning because 00:21:37.73\00:21:38.93 there's gonna be twice in a year 00:21:38.93\00:21:40.83 where you will have 00:21:40.83\00:21:41.83 three payments. 00:21:41.83\00:21:42.86 You'll be paying $1,500 00:21:42.86\00:21:44.80 as opposed to a thousand 00:21:44.80\00:21:46.00 every other month. 00:21:46.00\00:21:47.94 Okay? 00:21:47.94\00:21:48.90 And then also at the end of 00:21:48.90\00:21:50.31 every year when you get your 00:21:50.31\00:21:51.57 tax return, 00:21:51.57\00:21:53.71 take half of that return 00:21:53.71\00:21:55.38 and make a lump-sum payment 00:21:55.38\00:21:57.25 onto your mortgage. 00:21:57.25\00:21:59.01 So ask your mortgage broker 00:21:59.01\00:22:01.65 to do the calculation 00:22:01.65\00:22:03.02 on the term of the mortgage. 00:22:03.02\00:22:05.79 Going from just a regular 00:22:05.79\00:22:07.39 monthly mortgage to 00:22:07.39\00:22:08.89 an accelerated biweekly. 00:22:08.89\00:22:10.36 And you'll probably reduce 00:22:10.36\00:22:11.49 the term by a quarter. 00:22:11.49\00:22:13.53 So it dramatically decreases 00:22:13.53\00:22:15.60 the amount of interest 00:22:15.60\00:22:16.63 you'll have to pay. 00:22:16.63\00:22:17.63 And then, of course, 00:22:17.63\00:22:18.60 lump-sum payments go 00:22:18.60\00:22:19.63 directly on the principal. 00:22:19.63\00:22:20.74 >> If I do a 15-year mortgage... 00:22:23.14\00:22:25.27 ...my interest costs will be 00:22:28.11\00:22:29.58 dramatically less 00:22:29.58\00:22:31.18 than if I was to use a 00:22:31.18\00:22:33.58 30-year time frame. 00:22:33.58\00:22:35.35 Okay? 00:22:36.22\00:22:37.29 So the obvious answer would be 00:22:37.85\00:22:40.36 do a 15-year to force yourself 00:22:40.36\00:22:42.76 to go. 00:22:42.76\00:22:43.79 I say absolutely not. 00:22:44.86\00:22:48.06 If I get laid off 00:22:49.26\00:22:50.73 or if I get my hours reduced, 00:22:50.73\00:22:52.97 and now all of a sudden 00:22:52.97\00:22:54.54 I have no wiggle room 00:22:54.54\00:22:57.11 for this 15-year mortgage 00:22:57.11\00:22:59.41 that I took... 00:22:59.41\00:23:00.58 ...and now I go back to the bank 00:23:01.61\00:23:03.28 and want some relief, 00:23:03.28\00:23:05.78 nine times out of ten, 00:23:05.78\00:23:07.12 they're gonna say no, 00:23:07.12\00:23:09.65 because now I represent a risk. 00:23:09.65\00:23:12.45 On the other hand, 00:23:13.15\00:23:14.56 if I take the longer term... 00:23:14.56\00:23:16.42 ...but aggressively use 00:23:18.23\00:23:20.96 the 15-year time frame, 00:23:20.96\00:23:23.47 I get the best of both worlds. 00:23:23.47\00:23:24.97 >> Sven, is there any advice 00:23:28.20\00:23:30.21 in the Bible when it comes to 00:23:30.21\00:23:32.27 major purchases? 00:23:32.27\00:23:33.31 >> Yeah. 00:23:33.98\00:23:35.01 Let's turn to the Bible. 00:23:36.11\00:23:37.28 Let's turn to Luke 00:23:37.28\00:23:39.78 and... 00:23:39.78\00:23:40.88 ...Luke chapter 14, verses 28. 00:23:41.95\00:23:44.89 I think this is so very 00:23:45.62\00:23:46.72 important because when we go 00:23:46.72\00:23:47.89 into major purchases, 00:23:47.89\00:23:49.12 we really need to 00:23:49.12\00:23:51.26 sharpen our pencil 00:23:51.26\00:23:52.89 and, you know, 00:23:52.89\00:23:54.36 consult professionals. 00:23:54.36\00:23:56.60 And, you know, 00:23:56.60\00:23:58.57 I would rather ask 00:23:58.57\00:24:00.80 a dumb question 00:24:00.80\00:24:02.17 or what people might consider 00:24:02.17\00:24:03.24 to be a dumb question if I 00:24:03.24\00:24:04.34 don't know the answer, 00:24:04.34\00:24:05.81 than to be stuck with 00:24:05.81\00:24:07.64 buyer's remorse for, let's say, 00:24:07.64\00:24:09.61 30 years while I'm living in 00:24:09.61\00:24:10.85 my home. 00:24:10.85\00:24:11.88 So I would rather 00:24:11.88\00:24:13.85 look foolish for two minutes 00:24:13.85\00:24:15.52 than for 30 years. 00:24:15.52\00:24:17.02 So here it is. 00:24:17.02\00:24:18.92 Luke 14, verse 28. 00:24:18.92\00:24:21.16 So I think that gives us 00:24:31.47\00:24:32.50 such good advice, you know, 00:24:32.50\00:24:33.74 thinking about, do we have 00:24:33.74\00:24:35.14 enough for a down payment? 00:24:35.14\00:24:36.71 Can we afford, you know, 00:24:36.71\00:24:38.91 to do an accelerated biweekly 00:24:38.91\00:24:40.98 payment plan also covering our 00:24:40.98\00:24:43.21 insurance at the same time 00:24:43.21\00:24:44.95 on the home, because this is a 00:24:44.95\00:24:46.78 major portion of our portfolio, 00:24:46.78\00:24:48.65 we need to have it insured. 00:24:48.65\00:24:50.29 And then also working into my 00:24:50.29\00:24:52.02 budget that I can then pay 00:24:52.02\00:24:53.89 annual lump sums which go 00:24:53.89\00:24:55.26 directly against the principal. 00:24:55.26\00:24:56.66 >> Thank you, Sven. 00:24:58.83\00:24:59.89 Do you have any other 00:24:59.89\00:25:01.90 little points or anything else 00:25:01.90\00:25:04.73 that you would like to share 00:25:04.73\00:25:05.80 with our viewers? 00:25:05.80\00:25:07.54 >> I think just to reiterate, 00:25:07.54\00:25:09.60 you know, to consult 00:25:09.60\00:25:10.64 professionals. 00:25:10.64\00:25:12.17 Get a good realtor. 00:25:12.17\00:25:13.44 They will help you out a lot. 00:25:13.44\00:25:15.48 Go through a mortgage broker 00:25:15.48\00:25:16.91 so you can reduce the amount of 00:25:16.91\00:25:18.95 interest that you're 00:25:18.95\00:25:19.95 going to pay. 00:25:19.95\00:25:20.95 And if you lock in for 00:25:20.95\00:25:21.98 five years, every time it comes 00:25:21.98\00:25:24.29 due to renew, 00:25:24.29\00:25:25.69 go through the process again 00:25:25.69\00:25:26.99 of a mortgage broker, 00:25:26.99\00:25:28.42 because you might not go with 00:25:28.42\00:25:31.03 the suggestion of the broker, 00:25:31.03\00:25:32.29 you might go back to the 00:25:32.29\00:25:33.29 lending institution that you 00:25:33.29\00:25:34.56 have been with, but then they 00:25:34.56\00:25:36.23 know what you could get 00:25:36.23\00:25:37.50 and they might match that. 00:25:37.50\00:25:39.20 So ultimately you just 00:25:39.20\00:25:41.34 need to be in the driver's seat, 00:25:41.34\00:25:42.57 always feel you're in 00:25:42.57\00:25:43.61 the driver's seat. 00:25:43.61\00:25:44.67 >> Sven, thank you 00:25:45.37\00:25:46.41 very, very much. 00:25:46.41\00:25:47.48 Before we go, I wonder if you 00:25:47.48\00:25:49.11 could pray pray for our viewers. 00:25:49.11\00:25:50.28 There may be someone thinking of 00:25:50.28\00:25:51.68 a major purchase, or maybe 00:25:51.68\00:25:53.18 they've made mistakes in the 00:25:53.18\00:25:54.35 past, to know that God is 00:25:54.35\00:25:56.02 with them and guiding them, 00:25:56.02\00:25:57.15 giving them wisdom, giving them 00:25:57.15\00:25:58.42 patience, giving them hope. 00:25:58.42\00:26:00.69 To look to the future and 00:26:00.69\00:26:02.96 to give them wisdom 00:26:02.96\00:26:04.13 to make these decisions 00:26:04.13\00:26:05.33 in the right way. 00:26:05.33\00:26:06.46 >> Sure. 00:26:06.46\00:26:07.40 Dear Lord, I want to thank You 00:26:08.46\00:26:09.50 for Your love that You have 00:26:09.50\00:26:10.80 given to us, Lord. 00:26:10.80\00:26:12.77 And You want us 00:26:12.77\00:26:14.24 to be blessed. 00:26:14.24\00:26:15.40 And so please give us 00:26:15.40\00:26:16.81 the courage and the wisdom 00:26:16.81\00:26:18.44 to talk to other people, to help 00:26:18.44\00:26:20.31 us through some of these... 00:26:20.31\00:26:22.28 ...major purchases, 00:26:23.55\00:26:24.61 these major decisions in life. 00:26:24.61\00:26:27.22 So thank You, Father, for the 00:26:27.22\00:26:28.75 love that You have given to us. 00:26:28.75\00:26:30.15 You name I pray, amen. 00:26:30.15\00:26:32.09 >> Amen. 00:26:32.09\00:26:33.15 Sven, thank you so much 00:26:33.15\00:26:34.39 for joining us on 00:26:34.39\00:26:35.56 It Is Written Canada today. 00:26:35.56\00:26:37.83 >> You're very welcome. 00:26:37.83\00:26:38.86 It's been my pleasure. 00:26:38.86\00:26:39.89 >> Friends, our free offer is 00:26:42.70\00:26:44.73 a most powerful little book on 00:26:44.73\00:26:46.97 how Christians relate to money. 00:26:46.97\00:26:49.64 It is entitled "Jacob's Pillow," 00:26:49.64\00:26:52.37 written by our friend, 00:26:52.37\00:26:54.04 Shawn Boonstra. 00:26:54.04\00:26:55.64 >> Jacob's pillow is a 00:26:56.24\00:26:57.71 treasure of practical advice 00:26:57.71\00:27:00.05 and instruction from God's Word, 00:27:00.05\00:27:02.48 and includes a simple 00:27:02.48\00:27:04.29 budget outline in the 00:27:04.29\00:27:05.79 back of the book. 00:27:05.79\00:27:06.89 [uplifting music] 00:27:06.89\00:27:09.89 ¤¤ 00:27:09.89\00:27:12.86 >> Before you go, 00:27:15.56\00:27:16.56 we would like to thank 00:27:16.56\00:27:18.10 all of you who have 00:27:18.10\00:27:19.23 supported the ministry of 00:27:19.23\00:27:20.84 It Is Written Canada 00:27:20.84\00:27:22.50 with your prayers and 00:27:22.50\00:27:24.17 financial contributions. 00:27:24.17\00:27:26.54 Without your support, 00:27:26.54\00:27:28.21 this television ministry 00:27:28.21\00:27:30.21 could not have reached 00:27:30.21\00:27:31.41 so many people 00:27:31.41\00:27:33.18 for so many decades. 00:27:33.18\00:27:36.02 >> Yes, thank you. 00:27:36.02\00:27:37.92 And we would like to invite you 00:27:37.92\00:27:39.92 to follow us on Instagram 00:27:39.92\00:27:41.99 and Facebook and subscribe to 00:27:41.99\00:27:43.66 our YouTube channel, 00:27:43.66\00:27:44.86 and also listen to 00:27:44.86\00:27:46.63 our podcasts. 00:27:46.63\00:27:48.53 And if you go to our website, 00:27:48.53\00:27:49.73 And if you go to our website, 00:27:49.73\00:27:50.40 you can see our latest programs. 00:27:50.50\00:27:53.10 >> Friends, if you want 00:27:56.71\00:27:58.31 the kind of wisdom that God 00:27:58.31\00:28:00.24 longs to give you, 00:28:00.24\00:28:02.08 even in the financial areas 00:28:02.08\00:28:04.15 of your life, 00:28:04.15\00:28:05.68 we recommend you open the Bible 00:28:05.68\00:28:08.52 where it is recorded that Jesus 00:28:08.52\00:28:10.79 found His assurance to 00:28:10.79\00:28:12.25 defeat the devil 00:28:12.25\00:28:13.62 through the Word of His Father 00:28:13.62\00:28:15.72 when He declared... 00:28:15.72\00:28:17.19 [uplifting music] 00:28:28.84\00:28:31.84 ¤¤ 00:28:31.84\00:28:34.81