Your current asset allocation seems to be following
700 K Stocks
1 M cash
200 K debt
Some cash for normal expenses
In my view the debt is not very high compared to rest of the assets. So the main question to answer would be to decide what’s the best asset allocation for your risk tolerance. Focusing on 1.7 MM portfolio
If you intend to have any portion in Bonds then it might compete with your debt interest and in that case it might be better to pay off the debt before investing in bonds. CHF bond funds have 1.1-1.2% yield to maturity at this moment.
However if you seek 100% equity portfolio, then reducing mortgage would reduce your potential returns.