flagFounded: Founded in 2011, parent company founded 2003
businessOwned by: Connective, a privately owned mortgage broking aggregator
monetization_onFunded by: Advantedge (NAB), Macquarie Bank
securityLMI Provider: Genworth and QBE LMI
account_balanceLender type: Non-Bank, Mortgage Manager
Connective Home Loans is a non-bank lender owned by Connective, Australia’s largest mortgage broking group. It offers several funding sources under one brand and a simple application process.
Connective understand mortgage brokers and know how to work best with them to achieve great results for their customers. By combining this understanding of the industry, large broker distribution network and competitive funding sources, they’ve been quite successful within their broker group.
What’s the catch? Connective Home Loans is only available through Connective mortgage brokers. Since around one quarter of mortgage brokers in Australia are members of Connective this shouldn’t be too much of a problem.
How do Connective’s home loans compare?
They’re great at
But they’ve got some drawbacks…
- They’re not a major bank
- People who want branch access
- LMI can be expensive with some funders
What home loans types do they have?
Connective has two main product types which can help you to determine where the funding actually comes from.
Their Essentials Home Loans are funded by Advantedge which is a large wholesale funder owned by NAB. They usually have low variable interest rates and close to market leading fixed rates.
Their Smart Options Home Loans are funded by Macquarie Bank and are a replica of the products offered directly by Macquarie Mortgages. That being said, Connective Home Loans sometimes has better interest rates than going direct with Macquarie!
Both product ranges have owner occupied, investor, interest only, fixed, and 100% offset options. They’re suitable for most home buyers or investors.
Why did my broker recommend Connective Home Loans?
Connective Home Loans (CHL) is usually recommended because of their combination of good rates, good service and a quick loan approval.
CHL can share more information with your broker and work with them in a closer way. That means that your broker can take some of the hassles out of getting a loan and behave more like a bank manager than a mortgage broker.
CHL also has a great scenarios team which understands and can solve many loans that are outside of the box of the major banks. So your broker may be able to get you approved at a major bank interest rate even if you don’t meet their credit policy.
Tip for applying with Connective Home Loans
Use Connective’s loan application form to prepare for your home loan application.
Note: This is the latest application form as at August 2017. Please refer to Connective Home Loans for their most up-to-date document requirements.
Connective Home Loan client story: Leigh, NSW
- To buy first home.
After falling on hard times in the past, Leigh found himself in major credit card debt and made the difficult decision to declare bankruptcy.
Although he was eventually discharged from bankruptcy (after 5 years), the bankruptcy was still recorded on his credit file and he needed to declare this when applying for a home loan to buy his first home.
He was also over 50, which is an issue with most lenders because they’re concerned you won’t be able to pay off the mortgage by the time that you retire. Luckily, he had a 20% deposit to purchase the off the plan property which made him a low risk borrower.
He was also was able to present a clear exit strategy for paying off the loan using his superannuation.
However, months had passed since the pre-approval and by the time he applied for his unconditional home loan approval, the original property valuation had expired. Worst still, the new valuation undertaken through Connective came in around $20,000 to $40,000 less than Macquarie.
Luckily for Leigh, settlement was still 2 months away and his mortgage broker was able to overturn the latest property valuation in favour of the original Macquarie valuation.
Compare Connective Home Loans to other lenders
Not sure which Connective home loan is right for you? Our Home Loan Experts can help!
Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.