The article analyzes the choice between providing tax deductions or direct subsidies for homeowners' mortgage interest and property taxes in Canada. It discusses criticisms of these deductions in the United States, such as cost, inequity, and inefficiency. The argument that these deductions are needed for fairness between renters and homeowners is shown to be incorrect. The decision to use tax incentives for homeownership is influenced by politics, and alternative methods are suggested to encourage homeownership.