Are you freakin' kidding me?? I can't believe I haven't heard this before. This is one of the more insane ideas I've ever heard! Hey, i was thinking there was no way the Gov't could do anything to encourage us to stimulate ourselves thru' spending. But I think we've just found a way.
PPOR interest rates deductible is very common in most developed country. I think it is a great idea, much better then grants. But it should be deductible when you get the mortgage with the purchase, not for refinancing and often it is not 100% deductible.
It is not debt bubble fuelling that much as for investment property as you can usually do only in 1 property (unless you have a partner resident in your holiday place that can deduct a second mortgage).
In most country also you often have council rate reduction if you are resident or if you have a property leased out and not empty.
