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Leading mortgage aggregator Connective is confident that it can boost its home loan settlements by 25 per cent by August next year after achieving stellar year-on-year growth.
The aggregator revealed at its annual conference in Port Douglas last week that it achieved $3.3 billion in settlement volumes during August this year – a 39 per cent increase over 12 months.
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Breaking the numbers down, Connective brokers collectively wrote 375 loans per day worth $157 million, which equates to 38 loans per hour (in a 10-hour working day).
Connective director Mark Haron said the figures were “a fantastic result”, and expects the aggregator to boost this growth by a further 25 per cent by August 2016, which would see the group writing an average of $4 billion in settlements per month.
“A lot of that is based off what we can do to continue growing our broker numbers,” he told The Adviser.
“Brokers will write more of the business than the banks will directly – it just takes them a little bit longer to get the customers in a position to make that happen now – there’s more documentation required and more hoops to jump through.”
Connective also revealed at the conference that its loan book totalled $77 billion in August, with annualised growth close to 30 per cent.
Mr Haron said he was pleased that Connective has also significantly increased its broker numbers over the last 12 months to more than 800 in Victoria.
“Queensland and WA have also grown at a significant rate – we’ve had a good presence in those states for a while, but all of a sudden we’ve become a lot more popular in those areas,” he said.
“Coming off a very low base, the Northern Territory has seen a massive uplift in broker distribution over the last 12 months too.
“Overall, it’s all been going well, with NSW still leading as our key state for brokers.”
Connective has also seen massive in year-on-year growth in its asset finance arm, Connective Plant & Equipment, from over $10 million to $20 million, according to Mr Haron.
“A lot of that is due to our efforts educating brokers and making them realise the opportunities in asset and equipment finance and help facilitate those deals,” he said.
“We know we can double that figure by making brokers look more closely at their business internally and working out how they can do these types of loans.”
Mr Haron said Connective’s white-label offering has also experienced significant growth since re-launching in May, with applications through Connective Home Loans exceeding $150 million in October.
“Having new funders in Advantedge and Macquarie has really given us some access to some great pricing, so it’s really taken off quite nicely,” he said.
“Brokers like the proposition of a white-label product because it means that they probably have a bit more control of the relationship with the customer and the process.”
[Related: Connective bolsters executive team for retail offering]
