ISCOVER
New niche loan products have contributed to a marked rise in applications and settlements at Connective's white label lending arm this year, according to the group.
The white label lending arm of aggregator Connective, Connective Home Loans (CHL), has seen settlements jump by almost one-fifth in the first half of the calendar year, as more brokers use the in-house lending arm for clients.
According to Connective, CHL reported an 18 per cent year-on-year increase in settlements to $2.6 billion for the six-month period ending 30 June.
Applications to CHL rose by more than a quarter on the prior period (up 27 per cent) to reach $4.2 billion. However, while application volumes were up, the conversion rate from application to settlement dipped slightly from the 73 per cent achieved last year. CHL said the change reflected the impact of tighter credit conditions, with many borrowers facing stricter requirements.
Nearly one in two Connective brokers used CHL during the first half, with uptake supported by the launch of Connective Bridge, Connective Reverse, and Connective Horizon; three lending products rolled out as part of a diversification drive.
Strong demand in the June quarter
The aggregation group noted that momentum for lending was particularly evident in the June quarter, where applications totalled $2.2 billion, up 29 per cent from $1.7 billion the previous year.
In the same quarter, settlements hit $1.4 billion, up 27 per cent year over year. The growth echoes trends in the broader market, given that data from the Australian Bureau of Statistics (ABS) recently revealed that new loan commitments were up 1.9 per cent in the June quarter, partly driven by the rate-easing cycle and stronger consumer sentiment.
Indeed, CHL finished the first-half of 2025 strongly, with June marking the highest month for applications at $798 million, up 21 per cent on the best-performing month last year.
Commenting on the first-half results, the head of CHL, Michael Goerner, said: “These results show how effectively brokers are stepping in to help borrowers find the right solutions.
“Even in a more complex environment, they are identifying opportunities and ensuring their clients can access lending options that work. In the current lending landscape, speed, certainty and choice matter more than ever.”
Goerner added that CHL’s diversified range of lending products was helping attract brokers.
“Brokers are looking for flexible tools that allow them to meet a wider range of client need, whether that is bridging finance, reverse lending, refinancing or more structured lending. We are making CHL a more relevant and competitive choice across different borrower situations by broadening our product set and filling the gaps,” Goerner said.
“As a service-first aggregator, our focus continues to be on backing brokers with the right products, insights and support so they can strengthen customer relationships and build sustainable businesses for the future.”
Touching on the drop in conversion rates, Goerner said the fact fewer applications were settling "reflects how actively borrowers are shopping around".
"They are testing the market more before deciding where to settle, which is a sign of both heightened competition and increased borrower confidence," he said.
“Brokers are well placed to guide clients through that process and CHL’s strong growth shows they trust us to help them do it.”
Looking ahead, Connective noted that it expects CHL to remain a “key growth driver” through the second half of 2025.
CHL’s results follow Connective’s wider first-half results last week, which showed a 25 per cent jump in residential settlements to $49.8 billion.
[Related: Connective brokers settled record volumes in 2024]
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