Asset finance a weak spot in otherwise bullish result
Mortgage aggregator Connective enjoyed a strong surge in settlements across residential and commercial in the first half of 2025.
Connective conceded that high serviceability requirements and tight housing stock have created a “challenging” lending environment, but the network pulled through with a 24.5% year-on-year increase in residential settlements to $49.8 billion.
“This level of residential activity shows how resilient housing demand remains even as conditions tighten,” said Connective chief executive Glenn Lees (pictured).
“Brokers are at the centre of this momentum, translating demand into real outcomes and ensuring clients can move quickly in a competitive market,” Lees added.
On the commercial side, Connective brokers settled $8.61 billion in the period, marking an impressive 36.7% year-on-year uptick.
“Businesses are continuing to look for funding pathways that support growth and manage cashflow. Brokers are providing that connection to lenders and opening up opportunities that might otherwise be out of reach. Increasingly we are also seeing brokers step into new areas to meet business demand such as private lending and structured solution,” said Lees.
Connective’s smaller asset finance segment was less active, with settlements adding just 4.6% to $2.05 billion.
Lees noted higher borrowing costs and cautious consumer spending as headwinds. “Even so, Connective brokers have delivered growth by working closely with clients and leveraging a wider panel of lenders to provide fit-for-purpose solutions. That adaptability will position brokers well as confidence returns,” he added.
In total, Connective brokers settled $60.44 billion in loans at an 81% conversion rate.
