[octodog]

If the value of your house increases by, say, $100k, the play is not to sell the house but to tap into that equity to make new investments. The ability to do that will depend on your income, as you still need to be able to service a larger loan. But if your loan-to-value ratio improves you will also get a better rate from your bank, which makes this process a little easier.

The main benefit is to individuals who have a high income but not a lot of capital. Generally this benefits early or mid career professionals who are high earners but may not have come from really wealthy backgrounds.