Home Loans News: FNB and Discovery
Get up to 10% back on Home Loan repayments every month.
FNB home loans and Discovery Health have launched a new benefit product in which you could get up to 10% cash back on your bond repayments.
The cash back you’ll receive is based on your Discovery Membership status. If you’re an active Vitality member with an active DiscoveryCard you’ll qualify of up to 8% cash back on your home loan for 10 years.
For 10% cash back on your mortgage repayments for 10 years you’ll need to be an active Vitality member with an active DiscoveryCard and have Group Life Cover or a Group Income Continuation Benefit.
If you have Discovery Group Life Cover, a Group Income Continuation Benefit and you switch to First National Bank Home Finance, you are entitled to free Life Cover and free Home Loan Repayment Benefits.
Here’s how it all works:
To qualify for the cash back you’ll need to switch your bond to FNB Home Loans.
Transfer duties are not payable, but you will have to go through a new registration process and will pay home loan registration costs.
If you are an existing FNB Home Loan customer, you still need to apply, but you will be charged an activation fee of R3 000.
How the cash back is calculated
You switch your home loan to First National Bank or link your current FNB home loan. The home loan amount you register is R450 000 at a rate of prime minus 1% over a 20-year period.
Home loan: R450 000
Repayment at prime minus 1%: ± R4 200 pm for 20 years
Cash Back: 8% x R4 200 = R336 per month cash back paid into your DiscoveryCard