Mortgage question.

[hannamaren]

If we put 20% down, there is no insurance. 

If we only put 10% down, we pay an extra 2% on the total mortgage (added to the top from the start) for us this is $12000ish total 

The extra 10% down would mean we have a lower emergency fund (but still enough) and it would also deplete a chunk of our retirement savings (no penalties) 
the banker said we would have to have a return of 11% on our retirement in one year to equal the 2% cost (not sure how that translates to the rate we would need over 25 yrs) 

so would you just play it safe, put down 10%, pay the extra 2% or take a small risk and avoid the extra cost? 

[Deleted]

Personally, I would put 20% down if I could.

[hannamaren]

Ginger, we would have to take the money out of our RrSP (first time homebuyer) then we would repay at $200 a month until it is back.

[katiecj]

I would pay 20%.

[hannamaren]

Because we end up putting more down, lowering the total mortgage and without the insurance, the payment would be reduced about $500-600 a month. If my calculations are correct.

I am actually considering borrowing $20k on a line of credit and paying it off over 2 years at prime interest. It would make us more vulnerable, but may work. Hmmmmm.