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: enworth 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.


Discharged bankrupt, low property valuation, over 50, off the plan.


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.

Connective was able to pre-approve Leigh for the $340,000 he needed to complete the purchase via a Macquarie Bank property valuation.

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.

He was able to get approved for the home loan, avoid Lenders Mortgage Insurance (LMI) because he was borrowing at 80% of the property value and even managed to get a competitive interest rate.

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.

  • Dory

    Doesn’t seem like they’ll accept my annual bonus. Can you help me apply with another lender that can accept at least 80% of this income?

  • Yes, we can Dory. One of our lenders can accept up to 100% of your annual bonus. However, you will be required to supply them with a two year history of your earnings in order to prove that this income is ongoing. You may be entitled to borrow up to 90% of the property value and up to 95% on a case by case basis. Please call 1300 889 743 to discuss all this with an expert mortgage broker.

  • Bonni

    Why do banks consider dual-occupancy residential properties to be high risk?

  • Hello Bonni,

    Generally, duplexes and dual occupancy loans are considered to be a higher risk by most lenders because fewer people want to buy two houses on a single block of land. Banks prefer properties that are easily marketable because if you can’t repay your loan, the bank doesn’t want it to take longer to sell the property or end up selling for a lower price.

  • heenan

    Hi, is it possible to refinance to a low doc loan? I want to refinance but can’t provide my income evidence right now.

  • Hi heenan,
    Yes, you can refinance and still borrow up to 85% of the value of your property. You may not be able to provide the tax returns to prove your income, especially if you’re nearing the end of the financial year. However, you may be able to approach your accountant and ask for a letter declaring your projected income for the end of the financial year and get a low doc loan. Please note that cash out restrictions and other conditions apply so feel free to contact one of our expert mortgage brokers on 1300 889 743.