Homeowners tap into equity for holidays and cars, fuelling fears of stubborn inflation

It’s a thought we’ve all had – you look around at the fancy cars and glitzy holidays people around you are enjoying and wonder: how can they afford it in this economy? Turns out they are probably using one, massive unofficial credit card: the equity in their homes. Alarming new figures from Finder.com.au have revealed homeowners have been using their properties to fund major new purchases, drawing out equity for holidays, cars and even daycare. Finder’s 2026 Home Loan Report found more than one in five homeowners (22 per cent) have accessed their home equity in the past 12 months. MORE: Fury as $675k earner gets govt aid Inflationary pressures have pressured the RBA to keep rates high. That’s an estimated 1.4 million Australians who have unlocked the value of their home to help fund a major expense, according to the study. But there’s a catch: frequent spending on big ticket items is inflationary and may be partly behind the stubborn high inflation that’s put the Reserve Bank under pressure to raise interest rates. The Reserve Bank has pulled the trigger on three cash rate hikes this year and is widely expected to announce another hike at some point this year. Drawing equity out of...