The aggregator has smashed its own lending records, with rate cuts, policy support, and broker diversification combining to unleash a significant rebound in demand.
Connective, one of Australia’s largest aggregation groups, has reported “record-breaking” 2025 calendar year financial results, as falling rates, policy support for first home buyers, and renewed borrower confidence pushed activity higher.
Connective’s brokers settled $135.47 billion in total over 2025 – a 29.3 per cent increase on the prior year – with the closing months of the year delivering the heaviest flow and December alone approaching $14.1 billion.
CEO Glenn Lees said what stood out was the consistency of the uplift across the various lending types.
“The defining theme of this result is the scale of growth. We saw strong performance across every lending segment and at meaningful scale, with settlements up nearly 30 per cent on last year – a big jump that demonstrates the impact and value of our brokers,” he said.
“They’re writing more volume, across more products and categories than ever before – and doing so with increasing sophistication.”
Lees added that Connective’s investments in its platform had played directly into the result, noting that “the depth of capability we offer our brokers is translating into stronger outcomes for clients and sustained momentum for Connective”.
Home lending builds on easing rates and policy measures
Owner‑occupied and investor loans provided most of the dollar volume, with residential‑only settlements rising 29 per cent over the year to $112.4 billion.
December was the busiest month for housing, with almost $11.7 billion in new mortgages completed as borrowers looked to lock in finance ahead of the summer break.
Application flows were even stronger than finalised deals, with home loan applications climbing 30 per cent to $164.4 billion, pointing to a sizeable pipeline rolling into 2026.
Connective linked the rebound to a friendlier rate backdrop following the three cash‑rate cuts and to the introduction of the first home buyer scheme.
Lees said the combination of rate reductions and targeted government support helped galvanise housing sentiment.
“We saw confidence return to the housing market with supportive measures like the First Home Buyers Scheme introduced, a stabilising rate environment and the RBA holding the cash rate in December,” he said.
“Borrowers responded before year‑end, seeking tailored solutions and taking advantage of favourable conditions – contributing to one of the strongest residential settlement surges we’ve seen.”
Commercial lending outpaces the rest
On a growth‑rate basis, business lending was the standout.
Commercial settlements reached $18.9 billion for the year, up 37 per cent on 2024, with nearly $2.1 billion written in December as demand from small and medium‑sized businesses picked up.
Connective said more of its members were now arranging finance for trading businesses, property‑backed commercial deals, and working‑capital needs – and were drawing on an expanding line‑up of bank lenders, non‑banks, and private funders.
Lees said that this shift was changing how SMEs approached funding decisions.
“We’re seeing more brokers diversify into commercial lending, giving them new ways to support SME clients,” he said.
“With a wider range of lenders, better technology, and more experience in the broker channel, our brokers can connect clients with more funding options than ever before. That mix of capability and choice has been a key driver of growth in this part of the business.”
Asset finance holds its ground and deepens specialisation
Asset‑backed lending added another leg to the result, with the category rising to $4.2 billion in 2025, an increase of almost 8 per cent – even as some businesses remained cautious about committing to new equipment and vehicles.
The number of brokers who focus solely on asset finance increased by 15 per cent, indicating a thicker bench of specialists working on vehicle, plant, and equipment deals.
Midyear activity in the segment was particularly strong, with June producing $442.3 million in settlements as earlier rate reductions made replacement and upgraded programs more attractive.
Connective touts bigger team to support broader remit
To keep pace with rising volumes and a broader mix of transaction types, Connective said it added more people behind the scenes in 2025.
The aggregator said overall headcount had reached 190, including six new hires in its broker support team, which the group said would lift day‑to‑day technical and operational backing for the network.
Lees said building out internal expertise was critical as more brokers moved from single‑line to multi‑line lending relationships with their clients.
“As our brokers expand across all lending types, the support they receive is becoming more specialised,” he said.
“By investing in the right people, processes and tools, we are helping brokers deliver better outcomes, service, and support for their clients, positioning everyone involved for continued growth in 2026.”
[Related: Connective white label book surges on multi‑solution push]
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