Discovery Bank taking on Absa, FNB, Standard Bank and Nedbank with ‘discounted’ home loans

Discovery Bank says it will enter the full-service banking sector – taking on the big legacy banks – by offering a new home loan product for clients in 2024.

The loans will be facilitated through SA Home Loans and could offer up to a 1.5% discount on the interest rate based on a client’s status on Vitality Money.

“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.

Once launched to market, the bank said prospective customers will be able to access the features directly through the Discovery Bank app.

Some of the features 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, it said.

“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,” it said.

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 after 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.

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