Participants:
Series Code: IIWC
Program Code: IIWC202431S
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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 27:22 with your prayers and 27:24 financial contributions. 27:26 Without your support, 27:28 this television ministry 27:30 could not have reached 27:31 so many people 27:33 for so many decades. 27:36 >> Yes, thank you. 27:37 And we would like to invite you 27:39 to follow us on Instagram 27:41 and Facebook and subscribe to 27:43 our YouTube channel, 27:44 and also listen to 27:46 our podcasts. 27:48 And if you go to our website, 27:49 And if you go to our website, 27:50 you can see our latest programs. 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 ♪♪ |
Revised 2025-05-01