From CompliNEWS | Financial Service Intelligence Watch
Discovery enters home loan market
Discovery Bank has launched a new home loan product with personalised interest rates based on applicants’ individual risk profiles, it announced yesterday. Through its ‘shared-value banking’ model, Discovery clients can reduce their interest rates by up to 1% when they use additional Discovery insurance products. Moneyweb reports that its clients can lock in a market-related interest rate upfront and dynamically reduce interest repayments by managing their money well to save over the long term. ‘Through this shared-value approach, the current Discovery Bank client base could save up to R2.8bn in interest repayments on their current loans, and with the same model, South Africans could save up to R12.2bn a year,’ it said. All clients who take out new home loans, switch home loans, or refinance their homes with Discovery can qualify for the shared-value interest rate discount, the company said.