Balancing Mortgage with Retirement Investing

Cintrapark

Hi guys

I would really like to hear your feedback on the following situation. My financial situation is as follows:

Age: 42
Country of Residence: Israel
Balance of Employer Funded Pensions: $110,400 (monthly contribution - ($1,230)
Personal Investments: $106,645 (monthly contribution - $1,930)
Apartment Value: $960,000
Potential Mortgage: $110,000 (expected mortgage interest rate 3.2%)

As you can see from the above, I live in Israel. My goal is to save up enough money so that I can take part-time employment in 10-15 years time and supplement the rest of my income by way of my investments.

I was extremely fortunate enough to have entered the property market at a very young age and was able to put down a huge deposit on an apartment here in Tel Aviv when moving from London to Israel. The apartment is currently being built and will be ready in three months time.

Due to astronomical house prices in Israel, and the fact that Tel Aviv is the only place I'm willing to settle down in, I have to face the fact that selling up, moving elsewhere in order to release the equity and buy cheaper, is not a realistic option for me.

The question is this. When taking out a mortgage, should I delve into my investments in order to shorten the term and pay it off faster? Or should I simply take out the 110k mortgage and pay it off over 12 years or so.

I feel as though I'm currently at my peak in terms of earning potential and am not sure how much longer I"ll be able to command this kind of income. In addition, I have entered a co-parenting agreement with a friend of mine, whereby we will be hopefully having a child together in the next year.

Would love to hear your thoughts. Thanks!