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
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major purchases.
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[theme music]
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¤¤
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[upbeat music]
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¤¤
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>> Welcome to
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It Is Written Canada.
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Thank you for joining us.
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Jesus warned...
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This is good advice
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when it comes to
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making major purchases.
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Do I buy a used car
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or a new car
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or lease a car?
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Do I rent an apartment?
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Or do I buy my own house?
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Will I be able to afford it
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or will I, in the end,
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not have enough
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to finish paying it off?
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>> Our special guest on
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It Is Written Canada today
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is Sven Tornlov, along with
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other financial experts
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who will share with us
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their wisdom on making
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major purchases.
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>> Sven, thank you so much for
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joining us on
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It Is Written Canada today.
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>> You're very welcome and
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my pleasure to be able to
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talk about things that I am
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passionate about.
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>> Sven, what are the
00:02:06.42\00:02:07.82
two major purchases that
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people have to make?
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>> You know, for most people,
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the two very common will be
00:02:13.26\00:02:14.86
a house and a car.
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>> Sven, let's start with
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buying a car.
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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?
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>> So if you're in the market
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for a new car, you're gonna be
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going to a new car dealership.
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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
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and depending on your
00:02:38.12\00:02:38.42
and depending on your
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comfort level, also go to
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a private sale.
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If it's going to be a
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If it's going to be a
00:02:43.66\00:02:44.09
private sale that you're
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going to look to buy,
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talk to the owner
00:02:47.76\00:02:49.33
and see if you can share
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in the cost, 50-50,
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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,
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the owner still has the
00:02:57.21\00:02:57.91
the owner still has the
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120-point inspection
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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,
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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...
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...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.
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>> 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,
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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?
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>> 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.
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>> 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
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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
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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.
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And understandably so.
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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
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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
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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.
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>> 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,
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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
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00:27:44.86\00:27:46.63
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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
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of your life,
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we recommend you open the Bible
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where it is recorded that Jesus
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found His assurance to
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defeat the devil
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through the Word of His Father
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when He declared...
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[uplifting music]
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¤¤
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