Welcome Home with SA's first and only shared-value home loan

Here's a calculation that should astound you: our newly launched Discovery Bank Home Loans - built on a shared-value model that's good for you, your bank and society - could save the current Discovery Bank client base (that's you!) up to R2.8 billion in interest repayments on their current loans.

This is great news if you're serious about building your assets and managing your credit responsibly, because you know that Discovery Bank loves to support and reward its clients!

If that doesn't convince you that our home loans are rewarding, scroll on to learn more about the why and how - and we promise you'll discover more valuable benefits than you ever imagined!

A quick and simple start - all in your banking app

With Discovery Bank, you always get more than you expected, and our brand-new home loans are no different. Here's a quick look at some of the features that make Discovery Bank Home loans the most rewarding in the market:

You'll also enjoy flexible access to your prepaid home loan funds with a built-in access facility, a full ecosystem of benefits, digital convenience, and tailor-made service anytime, anywhere, from the ease and convenience of your banking app!

Ready to get started? Apply for a Discovery Bank Home Loan using the Discovery Bank app and get an initial offer in minutes. For more information, see: How do I apply for a Discovery Bank Home Loan?

What you need to know about your Discovery Bank Home Loan interest rate:

1. We use JIBAR rates to determine your base interest rate

We use three-month JIBAR as our base rate, while other banks also have risk based pricing (i.e. they add or deduct from Prime based on a clients profile) We add a personalised link rate (depending on your risk profile) to JIBAR to get to the contracted interest rate (your interest rate before any interest rate discount) we apply to your home loan.

What this means for you: Not only do you get a more tailored interest rate based on your unique profile, your interest rate also won't move at the same time as Prime, but only on predetermined quarterly reset dates.

2. You can reduce your base rate by up to 1% through how you manage your money

Unlike most banks where you only have a contractual interest rate on your home loan that you pay every month, with Discovery Bank Home Loans you pay an effective interest rate, which consists of a contractual rate MINUS an interest rate discount. With Discovery Bank, you can get a further discount of up to 1% on your interest rate by managing your money well and by protecting your home loan and home with the relevant insurance products Discovery offers. The interest rate discount is recalculated each month based on the main applicant's financial behaviour.

What this means for you: You get a market-related rate upfront, and then reduce your effective interest rate if the main applicant enhances their Discovery product portfolio and uses Discovery Bank as their primary bank.

How the 1% interest rate discount is calculated:

With big numbers at stake, every fraction makes a difference. As a Discovery Bank client, you can get an interest rate discount of up to 1% on your Discovery Bank Home Loan. This discount is calculated based on:

• Your Discovery Bank product: Up to 0.25% discount
  • The main applicant on the Discovery Bank Home Loan can receive a discount of up to 0.25% based on their qualifying Discovery Bank product. For more information, see: What percentage discount can I get on my home loan with my Discovery Bank product?

• Your Vitality Money status: Up to 0.25% discount
  • The main applicant can receive a further discount of up to 0.25% based on their Vitality Money status. For more information, see: How does my Vitality Money status impact my Discovery Bank Home Loan interest rate?

• Your home loan-related Discovery Life and Discovery Insure products: Up to 0.50% discount
  • You also stand to benefit from an extra 0.5% off by taking up cover from Discovery that will help protect against financial loss and help maintain long-term stability:
    • If you sign up for the Discovery Life Home Loan Protector and maintain a specific Vitality Money status, you can get up to 0.25% discount.
    • If you sign up for Discovery Insure Building and Contents cover and maintain a specific Vitality Money status, you can get an additional discount:
      • Full titles can sign up for both building and contents cover and earn another up to 0.25% off.
      • Sectional titles can only sign up for contents cover and earn another up to 0.125% off.
    • Note: If you have a sectional title property, you won't be able to apply for Discovery Insure's building cover, so you therefore qualify for a maximum of 0.875% in total, and not 1%.

For more information, see: What percentage discount can I get on my home loan with Discovery Life and Discovery Insure products? And to check your interest rate in your banking app, open your Discovery Bank Home Loan facility and tap the home loan account on the Accounts tab.

Enjoy a tailored application process throughout

Major financial moves can cause some angst, so we make it a priority to help you feel understood and well-informed at every stage. From the attention of a dedicated consultant who understands your unique needs to the ability to track your application's progress, we ensure that you're never left out of the loop.

Get service with a smile from a dedicated consultant

We've partnered with home loan experts - SA Home Loans - who will administer and service your home loan. Once you've captured your application and we've checked that your documents are in order, a dedicated SA Home Loan sales consultant will be assigned to you. They'll keep in touch about the progress of your application and stay available to guide you through the details of your application and loan agreement.

Stay in control by tracking your application at every step

The home loan tracker in your Discovery Bank app means you can follow the status of your application at any time. You and your co-applicants (if you have any) will also get notifications of key milestones as your application progresses. Enjoy the journey of buying an asset by feeling in control at every step!

One place to manage your home finances

If organisation is your strong point, you'll love our handy digital tools that help you stay on top of your home finances. And if it's not - your banking app is a great place to start!

From using digital payment solutions to storing receipts in your Smart Vault or topping up your electricity in just a few taps - your app serves as a single, simple platform to manage your home finances.

If you're ready to buy, switch, refinance or show your home some love - we're ready to help!

The Future of Home Loans. Now.

Disclaimers:

• This article is meant only as information and should not be taken as financial advice. For tailored advice, please contact your financial adviser.
• Ðiscovery Miles do not constitute currency or any other medium of exchange in circulation in South Africa. Rewards are based on your engagement in Vitality programmes, Discovery products, and monthly qualifying card spend. Discovery Bank, Auth FSP. Limits, terms, and conditions apply.
• Ðiscovery Miles are more valuable than cash on the Discovery and Discovery Bank apps, in-store and online with Discovery Vitality's partners.
• The up to 30% back home partner offer is valid for six months from the date an attorney is assigned to home loan applications submitted by 31 October 2024. Discovery Bank Ltd. Auth FSP 48657. Limits, Ts & Cs apply.
• Rewards based on your engagement in Vitality programmes, Discovery products, and monthly qualifying card spend. Credit initiation and service fees may apply. Subject to credit approval.
• Miles Ð-Day T&Cs apply