HBF home loans launched

The home loan alliance between Perth-based health insurer HBF and the Bank of Queensland will be launched today, though the fund's chief-executive-elect said the insurer had no plans to become a bank.

The full text of an HBF announcement is pasted below

HBF enters the highly competitive home loans market on Monday November 13 with the launch of HBF Home Loans and Investment Home Loans.

HBF CEO-Elect Rob Bransby said the products were developed following research on the types of products and features that HBF members would like to purchase from the member-based organisation.

"We wanted to ensure our products were different from traditional financial service institutions and we have included a raft of customer-focused features you would expect from HBF," he said.

"Both HBF Home Loans and Investment Home Loans will have no monthly service fees; a one-off payment for loans of less than $1 million; and very competitive interest rates, including a variable interest rate that is below the rate offered by the major banks.

"HBF Home Loans will be provided by salaried personal consultants, whose focus will be on the member, not product commission."

Mr Bransby said that while health insurance would remain at the heart of HBF, the ageing population and spiralling health and technology costs were continually putting pressure on health insurance premiums and HBF was focused on finding alternative revenue streams to help ensure the long-term viability of the fund.

"This is the latest stage in our diversification program, following the successful introduction of financial planning and life insurance," he said.

"Both life insurance and financial planning have been well-received by our members and our general insurance business has now been operating successfully for more than 20 years, which is evidence that diversification works for HBF.

"As a member-based organisation operating under mutual principles HBF's focus is very much on members, not profits, and this is illustrated in the new products."

Mr Bransby said HBF had no aspirations to become a traditional bank and had formed an alliance with the Bank of Queensland to provide the new products, which would combine HBF's customer focus with BOQ's financial knowledge.

"BOQ is a well-established financial institution with a focus on doing the right thing by its customers, something we also pride ourselves on providing," he said.

Mr Bransby said HBF had recruited a team of experienced financial services experts from across the financial services sector to provide home loans to its members.

"Our financial services team has been recruited to fit with the unique people-focused culture of HBF," he said.

HBF has more than 900,000 members. It is the largest health insurer in WA and has successful general insurance and financial planning businesses.