I have a colleague who  likes the idea that he doesn’t have to borrow a single cent and can pay off his house in one shot.

To me that usually doesn’t happen very often unless your family is rather well off or that happens in later stage in your life when you have build up substantial cash flow.

Still what can happen is as such, suppose your cost on your flat is 400k, you foot a 10% down payment of 40k and then you need to pay off 360k + interest.

You and your spouse diligently save and have build up 100k within 10 years. Should you reduce your mortgage?

Some considerations:

• PRO – Paying off the mortgage will be considered “SAFE”. Credit becomes a difficult liability when you and your  spouse lose your job. Paying off early or reducing the burden reduces that future risk
• CON – ...