HBF and BOQ partnership to offer homeloans

The first deal between HBF and the Bank of Queensland since the two companies signed a deal in April has been announced, with HBF members to be offered home loans towards the end of the year.

Under the agreement, the product will be manufactued by BOQ, with HBF distributing them under their own brand.

HBF managing director Mike Gurry said HBF was committed to generating growth in areas other than health insurance, to reduce the pressure on premiums.

"The ageing population and spiralling health costs are continually putting pressure on health insurance premiums and HBF is focussed on finding alternative income streams to help ensure the long-term viability of the fund," he said.

The Bank of Queensland began an aggressive expansion program into other states in 2001, and has announced its plans to open a second WA branch office in Applecross next month.

The announcement comes at a time when banks and credit unions are themselves diversifying into other financial services, such as BankWest's insurance and wealth management business St Andrews, has formed an alliance with RAC Victoria to expand its customer base.