My understanding (based on no research at all) is that it was introduced here for a similar reason: "homeownership is good". And it probably is. But I don't kn

My understanding (based on no research at all) is that it was introduced here for a similar reason: "homeownership is good". And it probably is. But I don't know if the deduction helps with that. People buy what they can afford, so the "discount" is probably consumed by higher interest rates and inflated prices. It can also be argued that it's a form of regressive taxation: the rich are eligible for bigger mortgages, and therefore have more to gain from the policy. Personally, I would like to see it removed. Any serious attempt to do that it's probably political suicide, though, since it would have a noticeable impact on many people's finances. And who knows how it would affect the housing market. Maybe if it was done gradually over many years.