The tax reform that is long overdue is going to impact almost everyone. As part of this, all the existing tax deductions will be examined, and some of them may be removed altogether. The interest on a home mortgage is currently tax deductible up to a maximum limit of 500k for single and a million for joint filers.
Obviously, the benefits of this deduction are skewed towards big mortgages, as the interest deducted would be more for them.
This incentive may be on the chopping block as part of the overall tax reform, but the most likely scenario is reducing the deduction rather than eliminating it altogether, say to 500k or 600k. Removing it entirely may not be feasible given the pressure from the real estate lobby as well as the public to some extent.
Subsidizing huge mortgages is not a smart tax policy and it’s time to correct that.