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Connective Home Loans Review

Connective Home Loan is different from other lender reviews and banks because of one reason – it is a non-bank lender and 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 I review Connective Home Loans products and put them through their paces.

Note this review, interest rates and product information are correct as at 1st August 2019 and all of this information is subject to change without any further notification. Any applications for credit are subject to meeting the specific bank’s criteria and the decision is at their final discretion.

 

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, and similar to 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:  If you are looking for a self employed home loan this could be the product you’ve been chasing. Connective Home Loans Resolve Product is similar to Low Doc loans that used to be offered, depending on your deposit you may not require your tax returns to qualify for a loan. 
  • Customer Service:  Due to it being a bit of an exclusive lender to work with, they ensure the customer service is incredible. They also use ZipID mobile apps so if you live in a report location you don’t necessarily need to physically see your broker.
  • Flexible Home Loan Products: When you apply through Connective Home Loans you have access to 6 different lenders, there are no application or up front fees and 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! 

connective_loan_options

The top 5 things Connective Home Loans aren’t so good at:

  • ⛔️ They are funded by all different banks and lenders:  With loan products funded by ING, Pepper, Adelaide Bank, Macquarie, Thinktank Commercial and Advantage/NAB having two Connective Home Loans could mean two different internet banking logins. 
  • ⛔️ There’s no branch access: No brand access due to it being funded through another bank, so if you need 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 LMI, and 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 directly a big bank. 
  • ⛔️ Not all Mortgage Brokers have access: If you are talking to Aussie Home Loans, or Mortgage Choice Mortgage Brokers then 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.

connective home loans

Connective Home Loans have lots of different products and features, but which is the right one for you?

 

1. Connective Essentials Home Loan

Essentials rate is the core product of Connective Home Loans, basically, it brings competitive rates and essential features plus a few other extras like extra payments and re-draw and no cost.

This is funded by Advantedge, which is ultimately owned by NAB one of Australia’s big 4 banks. 

  • ✅ Variable-rate gives flexibility, and they also offer 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
  • ⛔️ Fairly basic internet banking
  • ⛔️ No capitalised interest (more a feature for investors)

Download: Connective Home Loan Essentials Handout and Connective Essentials Features

connective essentials hls (1)

 

2. Connective Solutions Home Loans

This loan is great for investors or property purchases because it is simply a home loan with a redraw facility that is funded by Pepper Money.

Being funded by Pepper Money it means their credit policy is a little bit more flexible than their other products so you can look at:

  • ✅ 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
  • ⛔️ Interest rates and fees can be a little bit higher
  • ⛔️ Can be slightly slower to get loan approval due to each application being manually assessed by a person.

Connetive Solutions

 

3. Connective Resolve 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.

Connective Resolve is funded through ThinkTank a non bank lender who specialises in out of the box home loan solutions.

  • ✅ 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
  • ⛔️ Can be slightly slower to get loan approval due to each application being manually assessed by a person.

 

What are Connective Home Loan’s Direct 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.

Connective Home Loan Interest Rates

The right product and interest rate is going to come down to your situation, so get in touch with our Mortgage Brokers to work out the best deal for you.

 

What documents does Connective Home Loans need for a home loan?

See the thing is, you can’t just walk in and 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. 

Generally, the documents required include:

  • Proof of income
  • Details of any existing debts or loans
  • Identification

Download: Connective Home Loans application form

How much can I borrow from CHL?

If you choose to set up the Connective Solutions Package which is open to owner-occupiers, refinancers and investors you will be eligible for up to 95% Loan to Value Ratio (LVR).

This includes lenders mortgage insurance with the flexibility of weekly, fortnightly and monthly repayments.

As an example, if you were single and earning $70,000 per year with a $5k credit card your borrowing power with Connective Home Loans is:

how much can i borrow with connective (1)

About $314,785 which isn’t quite the most generous, but towards the top of all the lenders borrowing capacity.

Read more: How Much Can I borrow?

 

What else does CHL Offer?

Connective Home loans offers 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! 
home loans with connective

An example of a bridging loan, where you can buy a new home before selling your old one!

Read More: Bridging Loans, how do they work?

That last point is one of the big advantages with 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.

connective home loans options

 

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 have a chat about your situation, or give us a call on 1300 088 065.

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