[RegulatorCountry]

As a result, the cost of renting would not change, and the subsidy for homeownership would be removed.

So, you're in favor of removing tax favorable treatment for individual, primary residences, but continuing with deduction for rental properties?

Why would a government want to do that? It's destabilizing.

[curiosity]

So, you're in favor of removing tax favorable treatment for individual, primary residences, but continuing with deduction for rental properties?

Yes, because in the case of rental properties, interest is a business expense that is netted out against rental income. In the case of an owner-occupied residence, it is not.

Why would a government want to do that? It's destabilizing.

You've got it exactly backwards. The current regime subsidizes owner-occupied residency over rental residency. Removing it would elminate this distortion.