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A Little Known Fact, And Good News, About This Crisis

In Canada, mortgage interest on a principal residence is considered personal expense and hence not tax deductible. This spurs homeowners to pay off the mortgage as soon as possible. This is why there was no such mortgage bubble bursting and bank failures in Canada. Perhaps it is time to remove the tax break on interest expense for personal expenditure and keep it only for interest outlays to earn business income. Of course, there are no capital gains taxes on principal residences in Canada as a quid pro quo.