How to make cash out refinance work for you

A very useful tool but important to do right so you don't end up paying a lot more in unwanted interest

Cash out – everything you need to know

When you refinance to borrow money (from your property’s equity) to use for renovations or a new car, for example, lenders call this a “cash out” refinance. Sometimes people take out a personal loan against their mortgage or borrow some money to pay off credit card debt. You can essentially borrow money to put towards anything – a wedding, a new roof, your third Lamborghini – but only up to a certain amount. Each lender has their own rules and sets their own limits, and above these limits you will need to prove how the funds will be used. No lender has faith in you launching a small-scale newspaper operation, for example. Your equity is the difference between the value of your home and the amount you still owe on it. Thanks to the significant rise in property prices over the last decade or so, it could be a substantial sum. For example, let’s assume you bought a house 10 years ago for $500,000 and have $200,000 left on the home loan. If this property is now valued at $800,000 then your equity is $600,000. Most lenders allow borrowing of 80% of the value of the property, minus the debt that you have left to pay. So in this example, you could access $440,000 of your equity. With this sum, you could make significant investments and potentially take advantage of tax benefits – such as depreciation and negative gearing on an investment property – to get your money working for you. Bear in mind though, the amount of equity you can access will depend on the lender’s valuation – and this could be lower than you expect. Many lenders also place restrictions on equity home loans because of the risk of the lump sum released not being used for its intended purpose. Also, because you will be paying off this amount over the term of the loan you might end up paying more interest then you would have paid if you had taken out a shorter loan, such as a personal loan over five years. uno can help you work out if it is the right option for you. Find my rate

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Eden Harris
August 20, 2025
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Paul was awesome and handled my 1000 questions and follow ups like a pro. Happy with our home and loan :)
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Liam Johnson
August 9, 2025
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Fantastic service and great outcome. I have used Scott Wilkinson twice (initial finance and a subsequent refinance) and have found him to be responsive, reliable and knowledgeable - secured me a circa 1% rate reduction with minimal work involved from my end. Highly recommend.
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Birgit-Katja
August 7, 2025
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What a smooth, hassle free and stress free refinance with Jake. He took a very complicated loan from one bank to the other and not only saved us a lot of money but we basically also didn’t have to lift a finger in the entire process (apart from the basic paperwork needed). I am extremely impressed with Jakes knowledge and how he was able to answer questions and explain complications. Thank you Jake and the entire staff at UNO :)
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Justin Butcher
July 28, 2025
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PROFESSIONALISM PLUS Jake was very helpful in helping us achieve our dream. He is a very professional and informative person who goes out of his way to help his clients through a stressful time whilst making the whole process seamless. On top of this he can also help get better Insurances and is happy to assist where he can. We would absolutely recommend choosing Jake to help you! Thanks for everything it was a pleasure dealing with you.
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Aurora Tang
July 21, 2025
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Had a fantastic experience with Paul. He was knowledgeable, responsive, and made the whole process smooth and stress-free. Highly recommended.
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Just Abby
July 18, 2025
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My dealings with Scott Wilkinson at UNO, have been nothing short of exemplary. My refinance involved a bunch of moving parts due to a business debt, and Scott didn't stop until we got an excellent result! Great communication, easy online portals for data collection and, from all accounts, a great team working together to get results for their clients. I really can't thank Scott enough, for going the extra mile(s) to make this happen for me. 10/10 would recommend his services to anyone looking at a restructure, and I won't hesitate to reach out again, should I be in the position in the future.
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Matt Rose
July 11, 2025
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We’re incredibly grateful to Mike Parsons for his outstanding support and expertise. Mike took the time to genuinely understand our unique situation and demonstrated a deep level of knowledge and insight throughout the process. His ability to assess our needs and apply tailored solutions made all the difference. Thanks to his thoughtful approach and professionalism, we were able to achieve an ideal outcome that perfectly suited our circumstances. We highly recommend Mike to anyone looking for a knowledgeable and client-focused professional who truly goes the extra mile.
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Get About Guy
July 10, 2025
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The UNO Home Loans team provided a great experience. I'm an expat Aussie living in the UK who was looking for an investment property back home in Australia. Mike and the team guided me through the whole process from giving me an initial indication of how much I could borrow, to finding me a lender with an appropriate loan that met my needs, and finally through the settlement process with the bank. The team were always available to answer my questions very promptly. The whole experience was very easy and hassle free.
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Kylie Morgan
July 8, 2025
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Scott and the team were amazing. The entire process was so simple and so fast! Thank you!
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Gillian Kearon
July 6, 2025
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I highly recommend Mike Parsons as a mortgage broker. I couldn't fault the service provided by UNO. Thanks Mike!
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John Carlo Penaflor
June 24, 2025
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Amazing service from Scott. Efficient, clear and fast. Got my homeloan refinanced in record time.
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Rebekah Tolmachoff
June 24, 2025
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We had a fantastic experience working with Paul at Uno. From start to finish, he was professional, attentive, and genuinely cared about us and our situation. He kept in touch throughout the entire process, always keeping us informed and making everything feel simple and stress-free. Nothing was ever too much trouble, and his support made a big difference. Highly recommend Paul to anyone looking for a reliable and caring broker!
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