It Is Written Canada

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Series Code: IIWC

Program Code: IIWC202431S


00:01 for anything,
00:02 always feel that
00:04 you are in the driver's seat,
00:06 because if the deal isn't right
00:07 for you, you can always
00:09 walk away.
00:10 And walk away,
00:11 because the worst thing to have
00:12 is buyer's remorse,
00:14 because that will stay with you
00:15 much longer for those
00:16 major purchases.
00:19 [theme music]
00:22 ♪♪
00:56 [upbeat music]
00:59 ♪♪
01:03 >> Welcome to
01:04 It Is Written Canada.
01:05 Thank you for joining us.
01:08 Jesus warned...
01:20 This is good advice
01:21 when it comes to
01:22 making major purchases.
01:25 Do I buy a used car
01:27 or a new car
01:28 or lease a car?
01:30 Do I rent an apartment?
01:31 Or do I buy my own house?
01:34 Will I be able to afford it
01:36 or will I, in the end,
01:38 not have enough
01:40 to finish paying it off?
01:42 >> Our special guest on
01:44 It Is Written Canada today
01:45 is Sven Tornlov, along with
01:48 other financial experts
01:49 who will share with us
01:51 their wisdom on making
01:53 major purchases.
01:56 >> Sven, thank you so much for
01:57 joining us on
01:58 It Is Written Canada today.
02:01 >> You're very welcome and
02:02 my pleasure to be able to
02:03 talk about things that I am
02:04 passionate about.
02:06 >> Sven, what are the
02:07 two major purchases that
02:10 people have to make?
02:11 >> You know, for most people,
02:13 the two very common will be
02:14 a house and a car.
02:17 >> Sven, let's start with
02:18 buying a car.
02:19 Can you give us some tips
02:21 that we need to follow
02:22 when it comes to buying a car?
02:25 >> So if you're in the market
02:26 for a new car, you're gonna be
02:28 going to a new car dealership.
02:30 And if you're looking for
02:31 a used car, I suggest that
02:33 you go to one of two places.
02:34 You still go to a
02:36 new car dealership
02:38 and depending on your
02:38 and depending on your
02:39 comfort level, also go to
02:40 a private sale.
02:43 If it's going to be a
02:43 If it's going to be a
02:44 private sale that you're
02:45 going to look to buy,
02:47 talk to the owner
02:49 and see if you can share
02:51 in the cost, 50-50,
02:51 in the cost, 50-50,
02:52 of having that car inspected.
02:55 So if you don't buy it,
02:57 the owner still has the
02:57 the owner still has the
02:58 120-point inspection
03:00 that they can then show
03:01 to the next potential buyer.
03:03 Now, when you get that
03:04 120-point inspection, if you're
03:06 buying a Honda, let's say,
03:08 take it to a Honda dealership.
03:10 If you're buying a Toyota,
03:12 take it to a Toyota dealership
03:13 because they will be
03:15 so much more well aware and...
03:18 ...they've seen that vehicle
03:19 so many more times.
03:20 They know what to look for.
03:22 >> So there are some people
03:23 when it talks─ when you talk
03:25 about getting a car,
03:26 they're thinking, I absolutely
03:28 love this car, but it might be
03:30 beyond their budget.
03:31 So what kind of mindset
03:33 should they have
03:34 when they go into this
03:36 so that they don't go beyond
03:37 their budget and make an
03:38 impulse purchase?
03:39 >> You know, the interesting
03:40 thing is, whether you're buying
03:41 a Ferrari or a Mercedes
03:44 or a Honda,
03:46 ultimately you're just
03:47 gonna get from point A to B.
03:49 You know, that's the
03:50 bottom line.
03:51 So I think, again, you need to
03:53 do a needs analysis
03:55 and you need to be purchasing
03:57 the vehicle with the lowest cost
03:59 per kilometre
04:00 for your needs.
04:02 I think that's very, very
04:03 important.
04:04 >> So the colour of the car,
04:05 the make of the car
04:06 really isn't the issue.
04:08 >> That is correct, you know,
04:09 because the lowest cost
04:10 per kilometre.
04:11 When we fly, we're just
04:13 exchanging dollars for
04:14 kilometres fast.
04:16 And so when you own a vehicle,
04:19 you need to think of that
04:20 in the same relevant context
04:22 that you're just exchanging
04:24 dollars for kilometres.
04:28 >> Some people may have
04:30 an emotional connection
04:31 to getting a specific car.
04:33 For myself, I knew I just wanted
04:35 something affordable and safe.
04:36 But I do have some friends that
04:38 have their eye on a
04:39 very specific car model,
04:41 year, engine type.
04:43 There's a lot that comes into
04:45 buying a car,
04:46 and for some people it can be
04:47 very emotional for them.
04:49 It's their dream, right?
04:50 They've thought about it
04:51 since they were a little kid.
04:52 For most girls, they think about
04:54 their wedding day, but for
04:55 most little boys, a lot of guys
04:57 that I know, they have a
04:58 very specific type of car
05:00 that they want.
05:01 And understandably so.
05:02 Those are the toys that they
05:03 play with, and when they become
05:04 an adult, it's something that
05:06 you're gonna be seen in,
05:07 it's something that your peers
05:08 see you driving, right?
05:09 So it's not only the
05:10 transportation but the status
05:12 that also comes with a car.
05:14 But realistically, you have to
05:17 let the numbers
05:18 in your bank account
05:19 really speak for itself.
05:20 You can have this desire
05:22 to want a really expensive car,
05:23 but can your wallet afford it?
05:25 Can it handle that?
05:26 And if it can't, you're gonna
05:28 have to make that tough
05:29 but humble decision
05:32 and really check yourself
05:33 and say, "Okay, this is just
05:35 not something that's within
05:36 my means right now.
05:37 I have to be realistic about
05:38 what I can afford.
05:40 I don't wanna dig myself into a
05:42 debt hole trying to get
05:43 something that I love.
05:47 >> I remember when I was gonna
05:48 make a purchase of a car.
05:49 I think that was a major, major
05:51 thing for me.
05:52 I went to a friend and he said
05:54 to me, "What you're thinking of
05:56 is the type of car."
05:58 He said, "I'm a mechanic
06:00 and I can tell you this,
06:01 this type of car you're
06:02 talking about is gonna
06:03 cost you more in the end.
06:04 And all you need is a vehicle
06:06 that's reliable."
06:07 And so he told me
06:08 the right vehicle to get.
06:10 And I've continued to tell
06:12 my daughters, "You can get
06:13 any car you want,
06:14 just get this one.
06:15 Okay?"
06:16 >> You know, you're right.
06:17 For some people it becomes
06:18 a very emotional decision,
06:20 you know, of which vehicle
06:21 to buy.
06:23 And it's intimidating.
06:25 You know, really it is.
06:26 And so if doing and going
06:28 through that negotiation process
06:30 is intimidating for you,
06:31 you don't like that,
06:32 you don't enjoy that,
06:34 you know, bring someone
06:35 along with you
06:36 that maybe has more experience
06:37 or maybe enjoys that experience.
06:41 A number of years ago,
06:43 there was a lady and she
06:45 said to me, she said,
06:46 "Sven, I need to buy a vehicle.
06:48 I wanna buy a used vehicle.
06:50 I know exactly what I want,
06:51 I know exactly what I need and,
06:54 but I'm feeling a little bit
06:55 intimidated by going to the
06:56 dealership and negotiating
06:58 everything.
06:59 Would you come with me?"
07:01 And so I love doing that.
07:03 So I said absolutely, like,
07:05 who does not wanna go
07:06 test drive cars?
07:08 And so I said, "Yes,
07:09 I will come with you."
07:11 And I said, "You show me
07:12 which vehicle you want,
07:13 and then we'll get the
07:14 salesperson to come out and
07:15 salesperson to come out and
07:16 we'll start in the
07:16 negotiating process."
07:17 And we're gonna negotiate on
07:19 three things.
07:20 So for her,
07:21 she was going to trade in
07:23 her vehicle that she was
07:24 currently driving.
07:25 Now, ultimately I think you'll
07:26 do a little better if you can
07:27 do a private sale.
07:29 But seems she didn't like
07:31 that piece, for her,
07:32 trading in was best.
07:33 So I was gonna help her
07:35 negotiate the trade-in price,
07:38 the purchase price of the
07:40 used vehicle, new to her,
07:42 that she was going to buy,
07:43 and then also negotiate
07:44 the interest rate that she was
07:46 going to have to pay.
07:47 And so she found the vehicle
07:49 that she wanted,
07:50 that she needed, that fit her
07:51 needs for the lowest cost
07:53 per kilometre for her.
07:55 And it took about an hour
07:57 with the salesperson
07:58 and we negotiated very strongly
08:01 the sales price of her car.
08:03 And then we also negotiated
08:06 the purchase price,
08:07 and then we negotiated
08:09 the interest rate and we got
08:10 a little bit better on the
08:11 interest than they were going to
08:13 offer at the beginning.
08:14 And then we found out what her
08:16 monthly payment was going to be.
08:18 And so I said to the
08:19 salesperson, I said, "You know,
08:21 if you could lower that payment
08:23 by $10 a month, I'm not sure
08:25 how you're gonna do it, but
08:26 whether it's going to be
08:27 increase the value of the
08:29 trade-in or decrease the price
08:31 of the sale of the vehicle.
08:33 But if you can lower that by
08:34 $10 a month, then I think we can
08:36 go ahead and purchase
08:38 the vehicle.
08:39 And, you know, I felt good
08:42 after we had negotiated
08:43 all this.
08:44 Unfortunately, the individual
08:45 that I was with
08:48 wanted to give the salesperson
08:49 an extra thousand dollars
08:50 because they felt so badly
08:52 for them.
08:53 But, just remember that they are
08:54 making a profit.
08:55 They're making a profit when
08:56 they buy your car,
08:57 they're making a profit
08:58 when they sell you the car,
08:59 and they're also making a profit
09:01 on the interest rate.
09:02 [MIKE] Mmmm.
09:02 So she didn't give him
09:03 an extra thousand dollars.
09:04 >> She didn't, no.
09:05 She didn't.
09:06 But nor has she ever asked me
09:07 to come with her again
09:08 to purchase another vehicle.
09:10 >> So when you're making those
09:12 negotiations, you're always
09:13 in the driver's seat because
09:14 you're the person
09:16 paying the money.
09:17 >> That's right.
09:18 When you were negotiating
09:19 for anything, you know,
09:20 whether it's, you know,
09:21 an ad on Facebook that you're,
09:23 that you wanna buy something
09:24 small or a car or a home,
09:26 always feel that you are
09:28 in the driver's seat, because
09:30 if the deal isn't right for you,
09:32 you can always walk away.
09:34 And walk away because
09:35 the worst thing to have is
09:37 buyer's remorse.
09:38 You know, we've all had that,
09:39 and hopefully it's only with,
09:41 you know, a 25 or $50 item,
09:44 not a, you know,
09:46 20 to $30,000 a car
09:48 or more when you buy a house.
09:50 You don't wanna have that
09:51 buyer's remorse, because that
09:52 will stay with you much longer
09:54 for those major purchases.
09:58 >> There's a lot that comes into
09:59 play when purchasing a car,
10:01 especially when it's
10:02 your first car ever.
10:04 This school year was
10:05 my first time ever getting
10:07 a vehicle for myself.
10:08 I used to drive the car
10:10 that my parents had, but now
10:11 it was finally my turn to make
10:14 a purchase like this.
10:15 And it's definitely been the
10:16 biggest purchase I've had to
10:17 make up until this point
10:19 in my life.
10:21 And looking into it,
10:22 there's actually a lot more that
10:23 come into play than you can
10:25 realize at the beginning.
10:27 Sometimes we think, Okay, a car.
10:29 Just an initial purchase,
10:30 I go, I buy it, and that's it.
10:33 I have my car.
10:34 All is well.
10:35 All is well,
10:36 but now you have insurance
10:38 that you have to pay for.
10:40 And if you don't have the best
10:41 track record on the road,
10:42 like maybe you've run
10:44 a couple red lights, or you have
10:45 a couple speeding tickets,
10:46 That can boost up
10:47 your insurance.
10:49 There's gas that you have to
10:50 pay for, there's maintenance
10:51 of your car, there's car washes.
10:53 I mean, all of these things
10:55 are additional expenses to that
10:56 are additional expenses to that
10:58 initial price that you thought
11:00 you were just paying on
11:01 your car.
11:02 So there's a lot that
11:03 comes into play.
11:04 So you need to really take
11:06 your time with a purchase
11:07 this large, especially as a
11:08 this large, especially as
11:08 a young person.
11:10 You don't want to rush,
11:11 especially since it's something
11:13 that's gonna be a chunk
11:15 coming out of your bank account.
11:16 So I've actually never been
11:18 advised to buy a new car.
11:18 advised to buy a new car.
11:19 I've never had anyone in my life
11:21 tell me that it was a good idea.
11:23 So there's lots of places
11:25 that you can look to find
11:26 a second-hand car,
11:27 but one that's still safe.
11:29 I personally got my car from
11:31 Facebook Marketplace for
11:32 a reasonable price,
11:33 and it's safe.
11:35 I just had to get the tires
11:36 changed on it to winter tires,
11:38 get a couple of maintenance
11:39 things fixed, but it gets me
11:41 from point A to point B,
11:42 and that's the purpose of a car,
11:44 right, it's for transportation.
11:45 It's not for the luxury of it,
11:47 but just to get you
11:49 from one place to the other.
11:50 So as long as you're able to
11:51 do that, then the car is
11:53 serving its purpose.
11:56 >> Sven, what about someone
11:58 who doesn't feel comfortable
12:00 getting a used car,
12:02 but would actually like to
12:03 purchase a brand new car?
12:06 How can they plan ahead
12:08 to not have car payments,
12:10 like, on and on and on
12:11 into the future?
12:14 >> That's a good question.
12:15 And just as a sidebar,
12:17 I pose this question
12:18 to a number of people, you know,
12:20 come up with what you feel
12:23 is the car that is the least
12:24 cost per kilometre, you know?
12:26 So they scoured Facebook for
12:27 what they could figure out
12:28 what was the lowest cost
12:30 per kilometre.
12:31 So we did an analysis.
12:32 And there are some new cars
12:34 out there that are neck and neck
12:36 with the best deals that you can
12:37 find for a cost per kilometre.
12:39 So don't just think because
12:40 you're buying a new vehicle
12:42 that you're actually
12:43 spending more.
12:44 It might be a
12:45 very good purchase,
12:46 a wise purchase.
12:48 But yes, you're right.
12:49 René, when you buy a new car...
12:53 ...you might be making payments
12:54 for the next five years,
12:56 but in your mind, know that
12:57 you're gonna keep that car
12:58 for at least ten years.
13:00 And then after you've finished
13:02 making your payments to the
13:03 dealership and the car is
13:05 fully paid, instead of taking
13:07 that payment and absorbing it
13:09 into your monthly income,
13:11 continue making that payment,
13:13 but to yourself
13:14 into your future needs fund.
13:17 So every month you take that
13:18 same payment and put it into
13:20 your own fund.
13:22 Because then after ten years,
13:24 you will have five years
13:26 where you have put money
13:27 into that fund.
13:28 So you should be pretty close
13:30 to being able to pay cash
13:32 for your next new car.
13:34 >> That's really good advice.
13:36 So let's talk about the
13:37 big major purchase, the house.
13:40 I know it's good
13:41 and probably best to own
13:42 your own home, but sometimes
13:44 it might be better to rent.
13:46 When would we know
13:47 whether we should rent
13:48 instead of buying?
13:50 >> So we know that we have to
13:51 rent if we don't have
13:53 the down payment,
13:54 you know, because we have
13:55 no option.
13:56 We are only available to us
13:58 is to rent.
14:00 But, you know, there are
14:01 many jobs that we take,
14:02 especially, you know,
14:03 in our early working years
14:05 of our career where we might be
14:06 taking a one-year contract,
14:08 a mat leave,
14:09 and so we're only gonna be
14:10 in the community for a year.
14:12 And so on those situations,
14:13 yeah, you should be
14:15 wanting to rent.
14:19 >> Renting a place can be
14:20 a good option for people,
14:22 especially when you're young,
14:23 you're single, or maybe even
14:25 newly married,
14:26 especially in the time of life
14:28 maybe where you're living in a
14:29 downtown area, your job is
14:32 in the mix of all these
14:33 tall buildings, you know,
14:34 you want an easy way to get to
14:35 work, a place that you're not
14:37 going to have to drive
14:38 long distances to,
14:39 to commute to your workspace.
14:41 So for me personally, I'm going
14:43 to be starting work in
14:44 downtown Edmonton.
14:45 So it's realistic and it
14:47 makes the most sense for me
14:48 to live in downtown as well.
14:50 And right now I don't have kids,
14:52 I'm not married,
14:53 so I don't need a space for
14:54 my kids to run around
14:55 on the lawn, to have a swing
14:57 hanging from the tree.
14:58 It's just not the season
14:59 that I'm in right now.
15:00 So evaluate where you are
15:02 in life right now,
15:03 in life right now,
15:03 what you can afford
15:05 and spend accordingly, right?
15:08 And I've actually
15:09 been advised recently that
15:09 been advised recently that
15:10 when you're newly married,
15:12 don't buy a house one month
15:13 into your marriage, you know.
15:15 You're still learning how to
15:16 coexist with each other,
15:17 what each other's living quirks
15:19 are alike, right?
15:20 So wait around a year
15:21 before you start looking into
15:23 a house, and then
15:24 once you go from there,
15:25 you can see what both of you
15:26 like, because it's such
15:27 a huge purchase.
15:29 It's not like you can
15:30 buy a house and say, "Okay, no.
15:31 I have the receipt,
15:32 I wanna return it."
15:33 It doesn't work like that,
15:34 right?
15:35 So something as large and
15:36 as big as this type of decision
15:39 really needs prayer, advice from
15:42 those who have come before you
15:43 those who have come before you
15:43 and just really seek
15:44 God's wisdom in His Word.
15:46 You can find advice
15:47 in there as well.
15:48 So seek help, take your time.
15:51 There's really no rush yet.
15:55 >> Sven, when do you think
15:57 a person can look into
15:59 the mirror and say,
16:00 "I'm now ready to buy a house?"
16:03 What kind of conditions
16:05 do we need to meet
16:06 in order to say,
16:07 "Okay, I'm ready.
16:09 I can get my first home."
16:12 >> So a number of factors
16:13 have to be present.
16:15 You know, first and foremost,
16:16 we have to have our downpayment
16:18 ready, you know, and then we
16:20 go to the bank and become
16:21 pre-approved, that we know
16:22 how much our purchase
16:24 could be.
16:26 And secondly, we need to have
16:27 an emergency fund in place
16:28 because we are now
16:29 purchasing a home where,
16:32 you know, who knows,
16:34 an appliance might fail.
16:36 And so if we don't have
16:37 an emergency fund in place,
16:38 we are going to be forced to be
16:40 using plastic
16:41 to pay for some of these items.
16:43 So we want to have that present.
16:46 Also our job.
16:47 We need to know that we
16:48 are going to be in this area.
16:50 We wanna place down roots
16:52 and we're gonna─
16:54 we wanna be there for a while.
16:55 And so therefore, that is when
16:57 I feel that you can start
16:58 in earnest to look to buy
17:01 your first home.
17:04 >> Take your time.
17:06 We often feel like we're
17:07 being chased,
17:08 especially as young people,
17:09 to have our lives together by,
17:11 let's say, the age of 25.
17:12 If you're not married by
17:13 this time, if you don't have
17:14 a house, by this time,
17:15 you're behind the pack.
17:17 But everyone's journey
17:18 is different.
17:19 So looking at what
17:21 you can afford right now,
17:23 that's okay.
17:24 You know, if it's something
17:25 smaller than you anticipated
17:26 as a child, that's okay.
17:28 Situations will change.
17:30 Emergencies will arise.
17:31 You know, things that you
17:32 never saw coming
17:33 can come up in your life.
17:35 So you have to really take into
17:36 consideration how much you can
17:38 afford right now.
17:39 So if right now a house isn't
17:41 within your budget, that's okay.
17:43 And oftentimes as young people,
17:45 we can compare ourselves.
17:47 Someone your age may
17:48 have a house right now and
17:49 you may be still renting
17:50 an apartment, but it's what's
17:52 working for you right now
17:53 and you don't know their
17:54 specific situation.
17:56 Maybe they're just able to
17:57 afford it because the job
17:58 that they got allows for it.
18:00 But right now, where you are at,
18:02 do what you can afford
18:03 and be at peace knowing that
18:05 it's the right decision to
18:07 not spend more than
18:08 you can handle.
18:12 >> Let's talk about the
18:13 type of home.
18:14 Give us some ideas of
18:16 what are your options.
18:18 >> So in today's market, I mean,
18:19 homes are expensive.
18:21 And so, you know, it's not like
18:23 how it was a number of
18:25 years ago.
18:26 For many people,
18:27 their starter home
18:28 is going to be in a condo
18:30 or a townhouse, just because,
18:32 you know, the initial
18:34 purchase price is gonna be
18:35 considerably less as opposed to
18:37 moving into a detached home.
18:39 So maybe that's where you're
18:40 going to have to start to look.
18:42 You know, and for many of you,
18:44 this might be your second
18:45 or third home.
18:46 You have lived in a condo,
18:48 a townhouse.
18:49 And so now maybe you'll be
18:50 looking at a detached home
18:51 and you might be thinking,
18:52 You know, I might want this home
18:54 to be income generating, so─
18:57 to help pay for the mortgage.
18:58 So you might be looking
18:59 at a home, you know, with a...
19:02 ...a suite, you know,
19:03 a rental basement suite.
19:06 >> Is all debt bad?
19:09 The simple answer is
19:10 absolutely not.
19:14 Depending upon what the
19:15 conditions are...
19:19 ...you're able to use the debt
19:22 to purchase something...
19:26 ...that is going to
19:27 grow in value.
19:30 And once you've made
19:31 that choice,
19:32 now the next question...
19:35 ...that's, again, kind of
19:37 going to a whole nother
19:38 level is...
19:41 ...what's the most
19:42 effective way, once I have it...
19:45 ...to minimize the interest
19:47 that I'm going to pay
19:49 for this item.
19:52 Now, if I'm gonna run up debt...
19:55 ...for stuff that has
19:56 absolutely no value to it...
20:00 ...then that I wanna
20:02 stay away from.
20:05 But you have to be,
20:06 you really have to be
20:07 looking at...
20:10 ...what are you gonna to be─
20:12 what's the debt for?
20:15 Is it going to provide value?
20:17 Does it contribute to, again,
20:20 where you wanna be
20:22 down the road?
20:26 >> Sven, can you give us
20:27 any advice on how to─
20:29 on how we can decrease
20:31 the interest rates
20:32 on these major purchases?
20:35 >> Sure, let's talk about
20:36 two things we talk about
20:37 interest rate.
20:38 Let's talk about decreasing
20:39 the interest rate, you know,
20:40 on our home loan.
20:42 And we can advertise for that
20:45 and we maybe go see
20:46 a mortgage broker.
20:47 We ask our realtor
20:49 and they will canvas
20:50 our mortgage through a
20:51 mortgage broker
20:52 and they will then see and find
20:55 the best lending institution
20:58 that will give you
20:59 the lowest rate.
21:01 So that's one half
21:02 of the equation.
21:03 The other half of the equation
21:04 is over the term of the
21:05 mortgage, over the life of
21:06 the mortgage, to be able to pay
21:08 the least amount of interest.
21:10 And there are a number of
21:11 strategies in being able
21:13 to do that, but probably
21:15 the most common strategy is
21:16 instead of paying monthly
21:18 on your mortgage,
21:20 is to check the box that
21:21 you're gonna pay
21:22 accelerated biweekly
21:24 and keep this payment the same
21:26 as you would for a monthly,
21:27 so you just cut it in half.
21:29 So if your payment
21:30 is gonna be $1,000,
21:31 every two weeks accelerated,
21:33 you'll pay $500.
21:35 So yes, a little bit
21:37 careful planning because
21:38 there's gonna be twice in a year
21:40 where you will have
21:41 three payments.
21:42 You'll be paying $1,500
21:44 as opposed to a thousand
21:46 every other month.
21:47 Okay?
21:48 And then also at the end of
21:50 every year when you get your
21:51 tax return,
21:53 take half of that return
21:55 and make a lump-sum payment
21:57 onto your mortgage.
21:59 So ask your mortgage broker
22:01 to do the calculation
22:03 on the term of the mortgage.
22:05 Going from just a regular
22:07 monthly mortgage to
22:08 an accelerated biweekly.
22:10 And you'll probably reduce
22:11 the term by a quarter.
22:13 So it dramatically decreases
22:15 the amount of interest
22:16 you'll have to pay.
22:17 And then, of course,
22:18 lump-sum payments go
22:19 directly on the principal.
22:23 >> If I do a 15-year mortgage...
22:28 ...my interest costs will be
22:29 dramatically less
22:31 than if I was to use a
22:33 30-year time frame.
22:36 Okay?
22:37 So the obvious answer would be
22:40 do a 15-year to force yourself
22:42 to go.
22:44 I say absolutely not.
22:49 If I get laid off
22:50 or if I get my hours reduced,
22:52 and now all of a sudden
22:54 I have no wiggle room
22:57 for this 15-year mortgage
22:59 that I took...
23:01 ...and now I go back to the bank
23:03 and want some relief,
23:05 nine times out of ten,
23:07 they're gonna say no,
23:09 because now I represent a risk.
23:13 On the other hand,
23:14 if I take the longer term...
23:18 ...but aggressively use
23:20 the 15-year time frame,
23:23 I get the best of both worlds.
23:28 >> Sven, is there any advice
23:30 in the Bible when it comes to
23:32 major purchases?
23:33 >> Yeah.
23:36 Let's turn to the Bible.
23:37 Let's turn to Luke
23:39 and...
23:41 ...Luke chapter 14, verses 28.
23:45 I think this is so very
23:46 important because when we go
23:47 into major purchases,
23:49 we really need to
23:51 sharpen our pencil
23:52 and, you know,
23:54 consult professionals.
23:56 And, you know,
23:58 I would rather ask
24:00 a dumb question
24:02 or what people might consider
24:03 to be a dumb question if I
24:04 don't know the answer,
24:05 than to be stuck with
24:07 buyer's remorse for, let's say,
24:09 30 years while I'm living in
24:10 my home.
24:11 So I would rather
24:13 look foolish for two minutes
24:15 than for 30 years.
24:17 So here it is.
24:18 Luke 14, verse 28.
24:31 So I think that gives us
24:32 such good advice, you know,
24:33 thinking about, do we have
24:35 enough for a down payment?
24:36 Can we afford, you know,
24:38 to do an accelerated biweekly
24:40 payment plan also covering our
24:43 insurance at the same time
24:44 on the home, because this is a
24:46 major portion of our portfolio,
24:48 we need to have it insured.
24:50 And then also working into my
24:52 budget that I can then pay
24:53 annual lump sums which go
24:55 directly against the principal.
24:58 >> Thank you, Sven.
24:59 Do you have any other
25:01 little points or anything else
25:04 that you would like to share
25:05 with our viewers?
25:07 >> I think just to reiterate,
25:09 you know, to consult
25:10 professionals.
25:12 Get a good realtor.
25:13 They will help you out a lot.
25:15 Go through a mortgage broker
25:16 so you can reduce the amount of
25:18 interest that you're
25:19 going to pay.
25:20 And if you lock in for
25:21 five years, every time it comes
25:24 due to renew,
25:25 go through the process again
25:26 of a mortgage broker,
25:28 because you might not go with
25:31 the suggestion of the broker,
25:32 you might go back to the
25:33 lending institution that you
25:34 have been with, but then they
25:36 know what you could get
25:37 and they might match that.
25:39 So ultimately you just
25:41 need to be in the driver's seat,
25:42 always feel you're in
25:43 the driver's seat.
25:45 >> Sven, thank you
25:46 very, very much.
25:47 Before we go, I wonder if you
25:49 could pray pray for our viewers.
25:50 There may be someone thinking of
25:51 a major purchase, or maybe
25:53 they've made mistakes in the
25:54 past, to know that God is
25:56 with them and guiding them,
25:57 giving them wisdom, giving them
25:58 patience, giving them hope.
26:00 To look to the future and
26:02 to give them wisdom
26:04 to make these decisions
26:05 in the right way.
26:06 >> Sure.
26:08 Dear Lord, I want to thank You
26:09 for Your love that You have
26:10 given to us, Lord.
26:12 And You want us
26:14 to be blessed.
26:15 And so please give us
26:16 the courage and the wisdom
26:18 to talk to other people, to help
26:20 us through some of these...
26:23 ...major purchases,
26:24 these major decisions in life.
26:27 So thank You, Father, for the
26:28 love that You have given to us.
26:30 You name I pray, amen.
26:32 >> Amen.
26:33 Sven, thank you so much
26:34 for joining us on
26:35 It Is Written Canada today.
26:37 >> You're very welcome.
26:38 It's been my pleasure.
26:42 >> Friends, our free offer is
26:44 a most powerful little book on
26:46 how Christians relate to money.
26:49 It is entitled "Jacob's Pillow,"
26:52 written by our friend,
26:54 Shawn Boonstra.
26:56 >> Jacob's pillow is a
26:57 treasure of practical advice
27:00 and instruction from God's Word,
27:02 and includes a simple
27:04 budget outline in the
27:05 back of the book.
27:06 [uplifting music]
27:09 ♪♪
27:15 >> Before you go,
27:16 we would like to thank
27:18 all of you who have
27:19 supported the ministry of
27:20 It Is Written Canada
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27:26 Without your support,
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27:36 >> Yes, thank you.
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27:44 and also listen to
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27:48 And if you go to our website,
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27:56 >> Friends, if you want
27:58 the kind of wisdom that God
28:00 longs to give you,
28:02 even in the financial areas
28:04 of your life,
28:05 we recommend you open the Bible
28:08 where it is recorded that Jesus
28:10 found His assurance to
28:12 defeat the devil
28:13 through the Word of His Father
28:15 when He declared...
28:28 [uplifting music]
28:31 ♪♪


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