We have been in the fortunate position of being on a tracker of ECB+0.5% for the last 14 years or so. Now, with interest rates going up and who knows how long for and where they will peak, i am wondering if it now makes sense to pay off the loan fully. We have approx €122k and 11 years left on the mortgage and are in a position to be able to pay it off if need be.
We dont have any other debt.
Assuming you are maximising your tax-relieved pension contributions and you have €122k on deposit earning approximately zero interest, then it makes perfect sense to pay off the mortgage.
Paying off expensive debt (credit cards, personal loans, car loans, etc.)
Building up an emergency fund in a savings/current account (3 to 6 months' living expenses)
Saving money for any expenses you will have over the next few years (kids; buying a car; childcare; home renovations; adult children going to college, etc.)