In the US interest on a mortgage is fully tax deductible!
This represents a $100 million mortgage tax relief giving US homeowners every incentive to borrow as much as they can.
A little known cause of the 2008 financial crisis was the fact that the majority of toxic mortgages were not given to expand home ownership.
They were for re financing existing home loans marketed as a tax efficient way of getting cash from your home.
So while interest charged on a home loan is tax deductible, interest charged on credit cards or a personal bank loan is not.
When an overheated property market caused house prices to surge, people used the equity in their US homes as a tax free credit card.
With the Fed also keeping interest rates artificially low, it is no wonder the party had to end badly.