Is it worth it to save 20%?!

[Cameron Chambers]

This is one of the biggest questions I have that I keep in my mind.

Is it worth it to save 20% to skip out on mortgage insurance? To save for a house in this decade in Ontario is absurd.

Is it a rookie move to put 5% down and pay the mortgage insurance?...should I stick it through for years of saving to then have the money for a 20% downpayment?

Tell me your experience! THANKS

[Jon Kelly]

@Cameron Chambers PMI or no PMI doesn't matter as long as the numbers work.

Another way to look at PMI (instead of a waste of money as most think of it) is it increases your interest rate. For example, with a 4% interest rate and PMI of $75/mo, your effective interest rate may become 4.5%. Can you find deals that make sense using a 4.5% interest rate? Of course you can. Don't let the thought of PMI hold you back from a deal.

If you wait "years" to save up for the 20% down payment to save $75/mo for no PMI then how many deals will you have passed up?