Answer:
It decreases your debt and increases the money you have stashed away in assets, which is a strong way to build financial stability. Beyond that, you can also leverage home equity to borrow money at a lower interest rate.
Building the amount of equity in your home could help you to buy a more expensive home in the future. It can also mean you are less likely to have negative equity. The best way to build equity is to pay a bigger deposit when you buy your property.