Connective data highlights growing importance of commercial and asset finance for today’s mortgage broker
Connective data highlights growing importance of commercial and asset finance for today’s mortgage broker
Diversification is now the rule, not the exception, in the Australian broking scene, according to new data from mortgage aggregator Connective.
Based on Connective membership insights collated between January and December 2025, 51% of brokers are now writing at least one additional loan type on top of residential finance, with just 38% of brokers focusing solely on residential.
Almost half (49%) of brokers settled asset finance loans in 2025, while more than a third (35%) settled commercial loans.
“The findings demonstrate a structural change in the broking sector, with diversification increasingly seen as a core growth strategy,” said Connective. “By expanding across multiple lending types, brokers are creating new revenue streams, strengthening client relationships, and building resilience against market fluctuations.”
The strength in brokered asset finance is notable, given the difficult year that segment encountered in 2025, where cautious decision-making among SMEs made way for funding solutions that protected cashflow in a higher-for-longer interest rate environment.
Demand in 2025 was about upgrading essential assets and not so much about expanding fleets or machinery, noted Connective’s head of commercial and asset finance Brent Starrenburg (pictured, right).
Across Connective’s entire broker network, 19% of members are fully diversified, offering the full suite of residential, commercial and asset finance options.
Glenn Lees (pictured, left), chief executive at Connective, said the data reflects how brokers are responding to market conditions and client expectations.
“As borrowers navigate the ever-complex financial environment, they need more sophisticated services from brokers than ever before. It’s encouraging to see that brokers have adapted to meet the rising expectations and demand. Our brokers are writing more of everything, and the growth we’re seeing in areas like commercial lending reflects that,” said Lees.
“However, with market volatility and rate environment presenting ongoing challenges for borrowers, more efforts need to be made to support brokers’ diversification needs.
“We are acutely aware of the importance of providing brokers with the right compliance frameworks, technology, education and lender access to support their ambition to diversify their offerings and stay competitive in years to come.”
Commercial lending was “a quiet outperformer” in 2025, said Connective, with brokered settlements up 32.4% year-on-year to $18.3 billion, “highlighting the growing role of non-residential finance”.
Starrenburg said: “It’s not just about offering more products – it’s about really getting to know your clients and helping them with solutions that solve their different needs.
“Start small, try one new lending type, and make the most of your existing relationships. Brokers who educate themselves and bring multiple lending solutions together can grow revenue, strengthen loyalty, and build a more resilient business.”
Read more: Uncertainty breeds opportunity in commercial broking
Mortgage brokers have indeed struck a bullish tone on commercial lending, with research published in November 2025 showing three in four brokers expect strong growth in this space over the next 12 months.
The 2025 Mortgage Broker Pulse Survey from data and analytics firm Equifax shows 77% of brokers anticipate writing more commercial loans for small-to-medium enterprises and larger businesses. That marks a dramatic turnaround from the 2024 survey, when just 23% shared the same outlook.
At the same time, brokers remain highly engaged in refinancing strategies. Following three official cash rate cuts this year, 83% of brokers say they are prioritising refinancing opportunities for existing clients, while 72% are targeting borrowers unhappy with their current mortgage.
“While residential refinancing remains a key pillar, brokers are showing they are savvy to changing market conditions, capitalising on the growing commercial lending opportunity,” said Equifax executive general manager Moses Samaha.
Brokers are also staying committed to the first-home buyer segment, with 40% continuing to focus on FHBs, supported by expanded government initiatives such as the 5% First Home Buyer Deposit Scheme.
