In Switzerland you pay tax on the rent you could in theory receive as a landlord minus maintenance cost and mortgage payments. I suspect that this is a far bigger contributor to infinite duration mortgages than the bond market.
Ah yes, save a bit on taxes to get the most dangerous form of financing ever available to the general public, leverage up to your eyeballs. A classic, if something goes wrong the government will help us, right? :). And it's not like an ordinary person would a) really understand what such a mortgage is, b) be able to afford the property without using it.
In Australia for investment properties you can subtract the interest and all cost related to property management from your ordinary salary/wages/rental income
I upvoted you for adding context, but I have a question: minus mortgage payments or minus the interest on mortgage payments? There’s a huge difference.
In an eternal mortgage you are only paying interest, so interest on the mortgage I believe.