Canada's housing market seems to do fine without this tax break but it does seem reasonable to not cut it out old turkey since a there are people who would be harmed by a sudden removal.  A revision that limited the deduction to $50,000 in interest the first year, then $40,000, $30,000, $20,000. Maybe even leave up to $10,000 as a deduction. That would be the interest on a loan of about $250,000.