Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Advantages of paying more of your mortgage while you know you won't continue to live there your whole life
I will add one thought on to this thread.  This is a financial concept called "Net Present Value".  In plain English, it means "What's the best use for your money right now?" So, let's say you have an extra €300/month which is not being spent on living expenses. If you leave that money under your pillow (or spend it on beer or fancy electronics!) instead of paying off your startersloan early, that is costing you 300*(0.04/12) per month, every month.  So €1/month, or €12/year.  This is cumulative for the life of your loan.  So not paying €300 this month will ultimately cost you €120 assuming you keep the loan open for 10 years.  If you're saying "pay my debts or spend the money on a snappy smartphone?" the answer is that you should pay your debts. Now, here's the important part.  Let's suppose you have a better use for the money than beer or electronics.  Let's suppose you have a mutual fund which will reliably provide you with a return of 10% a year. If you put that €300/month into a high-yield fund, and if the returns are consistent, you are STILL paying that €12/year (because you invested elsewhere and didn't pay your debts), but you are realizing profits of 300*(0.1/12)=€2.5/month on the invested money.  €2.5-1=€1.5/month, which is a net gain.  So, in some cases, paying off your debt may not be the best use of your money. There are a number of other questions involved which are related to your exposure to capital gains taxes, incentives or disincentives for holding debt, &c. &c.  These are generally country specific.  A poster above who seems to be familiar with Netherlands law did a good explanation of some of those incentives.  I'm in the US, and our incentive and disincentive system is different. TL;DR:  It depends.