Alongside the borrowing for the purchase of housing assets, there is the phenomenon of housing equity withdrawal, whereby households are borrowing against rising housing values to fund other forms of spending. (rba.gov.au)
As we have seen, in the good times households can augment their consumption by effectively tapping into the increased equity in their homes (housing equity withdrawal). (rba.gov.au)
The flexibility the proposal offers you allows you to deal with house equity and other assets that you may wish to keep that would be possible but perhaps more challenging under a bankruptcy scenario. (hoyes.com)