Press release -
New to market: Discovery Bank announces home loans with up to 1.5% off interest rates
Johannesburg, 26 September 2023 - Discovery Bank announces a ground-breaking new home loan product for clients in 2024. Through its established shared-value banking model that rewards people for making good financial decisions, Discovery Bank will give clients up to 1.5% off their home loan interest rate for engaging and managing their money well.
“Discovery Bank will offer clients an entire home ecosystem which incorporates competitive home loans, protection for their homes and family, access to additional financing and exclusive solar solutions, on top of rewarding clients for managing their money well with up to 1.5% off their home loan interest rate,” said Hylton Kallner, Discovery Bank CEO.
This ecosystem enables clients to purchase, protect, power and furnish their homes, by integrating with Discovery Insure for protection of their biggest investment and contents, and with Discovery Life Home Loan Protector to secure ones’ home in the event of a tragedy. It also boasts Discovery Bank’s energy solutions giving clients access to solar, inverters and portable back-up power, with financing of up to 72 months and installation within 48-hours. The fourth feature of this ecosystem is enabled by the introduction of the Discovery Bank Revolving Access Facility, providing clients with immediate access to a flexible credit facility to use as and when they need, whether it’s for transfer fees, home renovations, maintenance, or new furniture – the Revolving Access Facility can be drawn down and repaid according to the client’s financial planning. Discovery Bank clients can also use their Discovery Miles to furnish their home with up to 30% off when shopping at retail partners including Coricraft, Makro, Takealot.com, YuppieChef and others.
This is all supported by world-class digital capabilities to manage their home loan and service their day-to-day financial needs. Clients can make payments using the digital payment solutions, top up electricity in a few taps, and store home shopping receipts in the Smart Vault.
Convenient features which prospective home-owners will be able to access directly through the award winning Discovery Bank app include:
- A preliminary offer in 5 minutes
- Up to 100% financing with terms up to 30 years
- A dedicated consultant to manage the transfer process
- Access to prepaid funds when they need it
- No medical underwriting for life insurance to protect ones’ family and home
In addition to financing for new home purchases, clients will also be able to switch their existing home loans to Discovery Bank or refinance their existing home.
Purchasing a new home is often a daunting task. The Discovery Bank Home Loan will be administered by a dedicated SA Home Loans team. SA Home Loans have over 24 years specialist mortgage experience. A dedicated SA Home Loans consultant will guide clients through the administrative and regulatory requirements needed to complete a home purchase.
The introduction of Discovery Bank Home Loans means the Bank will provide a full suite of banking services to make it a full-service bank just four years since its official launch as a branchless, digital bank in 2019.
Discovery employees and accredited financial advisers will be able to participate in a limited product pilot during the fourth quarter 2023 and clients will be able to apply for a home loan through the Discovery Bank call centre or with their Discovery Bank accredited financial adviser from the first quarter of 2024.
ENDS
Notes to editors:
Clients will enjoy up to an 1.5% Shared-Value Interest Rate discount on their home for engaging with Discovery Bank and integrating their Home Loan Protector and Home Insurance products from Discovery. For example, a client with a R2 million home loan could save over R400,000 in interest over a 20-year term by engaging and managing their money well.
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About Discovery Bank
Discovery Bank is part of Discovery Limited, a financial services organization that operates in the healthcare, life assurance, short-term insurance, savings and investment and wellness in over 40 markets. Discovery Bank is fundamentally designed differently through its shared-value model. Clients create value as they manage their money well that Discovery Bank shares back with them through better interest rates, deep discounts and significant rewards. The overall outcome is that clients experience greater financial wellbeing, it reduces the risk of defaults for Discovery Bank making the business more sustainable, and it addresses large-scale challenges, such as increased savings, that benefit society at large. Behaviour change and rewards are enabled through Vitality Money, an AI-Powered programme on the Discovery Bank app that which gives clients an understanding of behaviours that influence their financial wellbeing and how to manage their money. The better clients do, the higher their Vitality Money status and the greater the value they receive.
