No, it is not deductible as mortgage interest. Your loan is not secured by the home, it is secured by the stocks in your brokerage account. A margin loan does not qualify as a Secured Debt for purposes of the mortgage interest deduction. According to the IRS:
You can deduct your home mortgage interest only if your mortgage is a secured debt. A secured debt is one in which you sign
an instrument (such as a mortgage, deed of trust, or land contract) that:
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Makes your ownership in a qualified home security for payment of the debt,
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Provides, in case of default, that your home could satisfy the debt, and
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Is recorded or is otherwise perfected under any state or local law that applies.
In other words, your mortgage is a secured debt
if you put your home up as collateral to protect the interests of the
lender.
If you cannot pay the debt, your home can then
serve as payment to the lender to satisfy (pay) the debt. In this
publication,
mortgage will refer to secured debt.
