It should be noted that the 1350 that you are paying on your private residence mortgage is not all interest...some of it is capital payment therefore you are saving 1350x60 = 80000 over the 5 years but if you keep paying the mortgage of 1350 per month only half of this (probably less depending on the term left) is going on the interest. Therefore you would only save around 40000 maximum in real terms. Since your investment property is in a specific area, you should look at the property price increases in that area to see how they are expected to perform over the next few years. But if you can expect a rate of increase of 2.5% this year on the investment property that still easily outperforms the 3.3% interest you are paying on the outstanding 200,000 on your PPR. So if you don't need the cash, hold onto the investment property while there are still capital gains on the investment property.