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I have limited info on Ubank (they're not on broker panels I believe), but have had clients cash out with them before. So long as you can adequately repay the loan according to Ubanks servicing calculator, it should be fine to cash out the equity gain (up to 80%) and use it as a deposit to fund...

Given what you're looking for, it doesn't sound like a bad option. If your not going to need to cash out for the medium (foreseeable) term - you'll be saving ~1200 a year with them. If you're stuck in future, should be able to refinance and cash out down the track. Sticking with them for a...