Connective Home Loan (CHL) is different from other lenders and banks because it is a non-bank lender owned by Connective, one of Australia’s largest mortgage broker aggregators.
The bad news is that you can only access Connective Home Loans through Connective mortgage brokers.
The good news is that in Australia, over 21% of mortgage brokers are members of Connective and can access these loans!
Today we review Connective Home Loans products and put them through their paces.
Note this review, interest rates, and product information are correct as at 29 December 2022. All of this information is subject to change without any further notification. Any credit applications are subject to meeting the specific bank’s criteria, and the decision is at their final discretion.
Let’s dive In…
Table of Contents
What are Connective Home Loans like?
The top 5 things Connective Home Loans are good at:
- First home buyers with little deposit. Connective Home Loans aim to help those with little deposit get across the line.
- Fully assessed pre-approvals. Like ING Direct, they do fully assessed pre-approvals, meaning you’ll be able to make stronger offers on properties.
- Very strong self-employed products & flexible credit criteria. Connective Advance Home Loan could be the product you need if you are looking for a self-employed home loan. It is similar to Low Doc loans, and, depending on your deposit, you may not require your tax returns to qualify for a loan.
- Customer Service. Due to it being an exclusive lender to work with, they ensure that customer service is incredible. They also use ZipID mobile apps. So, if you live in a remote location, you don’t necessarily need to see your broker physically.
- Flexible Home Loan Products. When you apply through Connective Home Loans, you have access to more than 60 different lenders. There are no application or upfront fees. You also have the ability to do unlimited loan splits at no additional costs. This can be great for investors.
- They are good at financing duplex constructions. If you are looking at building multiple properties on one title, then Connective Home Loans could be the right option to consider. They will consider up to 3 dwellings on one title but have a few different terms and conditions, so best to check with our brokers that you qualify before filling out the paperwork!
The top 5 things Connective Home Loans aren’t so good at:
- They are funded by different banks and lenders. With loan products funded by Pepper, Adelaide Bank, Thinktank Commercial and Advantage/NAB having 2 Connective Home Loans could mean two different internet banking logins.
- There’s no branch access Connective is funded by other banks, so there is no branch access. Therefore if you need a bank that gives you access to deposit funds via a branch or want to deal with someone face to face – you might need to look at other options like Suncorp or Bank of Queensland.
- Lenders mortgage insurance can be costly. If you have less than a 20% deposit, you will need to pay Lenders Mortgage Insurance (LMI). The lower your deposit, the more you will pay in lenders mortgage insurance to protect the lender if something goes wrong.
- They don’t fall into the big bank category. Being a Mortgage Manager, Connective Home Loans use funds from big banks but aren’t a big bank.
- Not all Mortgage Brokers have access: If you are working with Aussie Home Loans or Mortgage Choice Mortgage Brokers, you won’t be able to apply for a home loan through Connective. At Hunter Galloway, we have Connective home Loans on our panel.
What are the different home loan products they offer?
Connective Home Loans has a limited range of home loan products funded by different banks that you might be familiar with.
Today we are going to review Connective’s 3 most popular products.
1. Connective Essentials Home Loan
Connective Essentials is the core product of Connective Home Loans and is funded by advantedge. It brings competitive rates and essential features, plus other extras like extra payments and redraw.
This is funded by Advantedge, which is ultimately owned by NAB, one of Australia’s big 4 banks. Other features include:
- Fully assessed pre-approvals valid for 90 days.
- Variable or fixed-rate options.
- No upfront fees
- Redraw facility with a Debit Card and ATM/EFTPOS access
- Split your loan up to four times
- Additional repayments at no cost, allowing you to pay off your loan faster.
- Fairly basic internet banking
- No capitalised interest (a feature mostly for investors)
- Accept on-probation loan applications with as little as 1 day of employment in a full-time or part-time position
Download: Connective Home Loan Essentials Handout and Connective Essentials Features
2. Connective Solutions Home Loans
This loan is great for investors, those with poor credit, are self-employed or don’t have up-to-date tax returns. This product is also great for those who are newly employed or require a longer loan term.
Being funded by Pepper Money means their credit policy is a little bit more flexible than their other products, so you can look at the following:
- Up to 95% LVR Loan with no genuine savings (so 5% deposit home loans)
- Loans up to $2.50M
- Strong debt consolidation policies, including the ability to payout ATO debt and private or solicitor debts
- Available to people with bad history, including Part IX or X debt agreements or discharged bankrupts.
- No credit scoring
- Investment loans can have 100% reliance on rental income for servicing.
- Interest rates and fees can be a little bit higher
- It can be slightly slower to get loan approval because each application is manually assessed by a person.
3. Connective Advance Home Loans
This loan is great for investors, property purchases or anyone wanting to purchase Commercial Property because it is simply a home loan with a redraw facility. Advanced home loan offers loans for the following scenarios:
- Full-Doc Loans
- Up to 80% LVR
- Maximum borrowing of up to $4 million
- Mid-Doc Loans
- Up to 70% LVR
- Maximum borrowing of up to $2 million
- Quick-Doc Loans
- Up to 65% LVR
- Maximum borrowing of up to $2 million
- SMSF Loans
- Residential borrowing
- Up to 80% LVR
- Maximum borrowing of up to $3 million
Connective Advance is funded through ThinkTank, a non-bank lender that specialises in out-of-the-box home loan solutions. Other features include:
- Low or limited documentation loans for self-employed borrowers
- Very understanding credit policy
- Variable-rate or fixed rate available
- Redraw facility with a Debit Card and ATM/EFTPOS access
- Additional repayments at no cost
- Interest rates and fees can be a little bit higher
- It can be slightly slower to get loan approval because each application is manually assessed by a person.
What are Connective Home Loan’s interest rates?
With Connective Home Loans having so many different types of funders, products and features, they also have lots of different interest rate combinations.
The right product and interest rate will come down to your situation, so get in touch with our Mortgage Brokers to find the best deal for you.
What documents do Connective Home Loans need for a home loan?
You can’t just apply for a home loan with Connective Home Loans. Lending products are only accessible through brokers that are already members of Connective. The compliance regulations are strict on brokers who are a part of this to maintain top service and an industry-leading reputation.
Your broker will be able to go into more detail about the specific documents needed to apply for a connective home loan, but generally, the documents required include the following:
- Proof of income
- Details of any existing debts or loans
- Identification
Download: Connective Home Loans application form
What else does CHL Offer?
Connective Home loans offer bridging finance, which can help you get back on track when selling your home.
You’ll get features like:
- No repayments during the bridging period
- Salary crediting options for loan repayments and redraw
- Ability to use your existing transaction account for repayments – so you don’t need to move banks or change existing direct debit details!
That last point is one of the big advantages of Connective Home Loans.
While some banks will force you to open a bank account with them to make your loan repayments, Connective Home Loans is happy to just debit your existing day-to-day account.
Read More: Bridging Loans, how do they work?
Why choose Connective Home Loans?
Connective Home Loans may be the best option for you due to their mix of excellent customer service, good interest rates and fast response time to set up a loan.
The support from CHL is also great, and they focus on solving out-of-the-box home loan situations.
So even if you don’t quite fit the perfect loan application, going through CHL may help you find a way.
Get in touch with one of our Mortgage Brokers to chat about your situation, or call us at 1300 088 065.
Next steps and getting your home loan
Our team at Hunter Galloway is here to help you buy a home in Brisbane. Unlike other mortgage brokers who are just one-person operations, we have an entire team of experts dedicated to helping make your home loan journey as simple as possible.
If you want to get started, please give us a call at 1300 088 065 or book a free assessment online to see how we can help.
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