The"loophole" seems to be that you can deduct interest payments from income if you're an investor, but not for the family home.
Yes, it's nuts, but it is what it is.
The principle of taxing profit has just gone out the window.
From here it's government by expediency, taxation by inspiration, and a further step on the slippery slope.
Now - how about leveling the playing field by scrapping tax on interest earned?