Postfix "cannot get RSA private key" on STARTTLS command

Not a single advice i have came across helped me so far, you are my only hope guys. I registered a free certificate from startssl, and tried to install it on my postfix server. OpenSSL confirms that my private key matches the certificate, unencrypted key is chowned by Postfix user, and all other files are loading pretty well. However, whenever I either send mail, receive mail, or connect through telnet i get message in logs saying

cannot get RSA private key from file /etc/postfi/ssl/mydomain.key.unencr 

I am all out of ideas. Postfix conf:

smtpd_tls_cert_file=/etc/postfix/ssl/mydomain.net.crt
smtpd_tls_CAfile=/etc/postfix/ssl/root.crt
smtpd_tls_key_file=/etc/postix/ssl/mydomain.net.key.unencr
smtpd_use_tls=yes
smtpd_tls_security_level=may
smtpd_tls_mandatory_ciphers=high

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