Paying off your mortgage is an important psychological milestone for any homeowner, but is it really worth sacrificing your retirement fund to get there?
For homeowners with a remaining mortgage balance beyond age 60, there’s a definite temptation to use a cash withdrawal from one’s pension in order to clear it. Photo: Getty.
For most people, a mortgage represents the single largest liability that they’ll take on in their lives. It is their largest recurring expense and, over the life of the mortgage, homeowners will end up spending hundreds of thousands of euros worth of interest on the money that they borrowed to purchase their home.
Naturally, as a result, there’s an inclination to want the mortgage to be paid off as soon as possible.
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