Discover Bank has announced the launch of a new home loan product featuring a dynamic interest rate saving facility. The bank will offer clients competitive, personalized rates based on their individual risk profiles. Additionally, clients can reduce their interest rate by up to 1 percent through Discovery’s Shared-value Banking model.
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“This reduction can be achieved by managing money well with Vitality Money and protecting the home loan and property with Discovery’s insurance products,” the bank explained in a release shared with Hypertext.
Clients can secure a market-related rate upfront and then dynamically reduce interest repayments by effectively managing their finances, leading to long-term savings. According to Discovery Bank, this new facility could save its clients up to R2.8 billion in interest repayments on current loans. With the Shared-value Banking model, Discovery predicts that South Africans could collectively save up to R12.2 billion a year.
“This is a highly anticipated milestone for us as we open the virtual doors to our home loans ecosystem. Those looking to buy a new home or upgrade their existing one can enjoy a full ecosystem of benefits and tailor-made services within the Discovery Bank app,” said Hylton Kallner, CEO of Discovery Bank.
“Our clients receive comprehensive homeowner support along with their home loans. This includes protection products for their homes and families, access to additional financing for energy solutions, and various rewards,” Kallner added.
Discovery is incorporating a gamification model similar to its healthcare and other financial products, rewarding clients based on their financial management.
“The rewarded behaviours include saving, being adequately insured, investing for retirement, and paying off home loans faster. The Bank shares the value from these financial behaviors with clients through better interest rates and rewards linked to the Vitality Money program,” the financial services provider noted.
“The better clients manage their money, the higher their Vitality Money status, leading to better rewards. By combining Vitality Money with the Home Loan Protector and Building and Contents Cover, Discovery Bank home loan clients can lower their interest rates by up to 1%,” the bank explained.
Going forward, all clients who take out new home loans, switch home loans, or refinance their homes with Discovery Bank can qualify for the Shared-value Interest Rate discount.
