Asia United Bank vs Philippine Business Bank: Home Loan Overview
Asia United Bank (AUB) is a commercial bank known for its technology-forward approach and competitive financial products. Its home loan offering is designed for both purchase and refinancing, with fixed-rate options that give borrowers predictability in their monthly amortization. Philippine Business Bank (PBB), meanwhile, is a thrift bank that has historically focused on serving small and medium enterprises and their principals — meaning its home loan products may be more accessible to self-employed borrowers, but are less widely promoted and may carry higher rates.
For Filipino homeowners considering a switch, understanding the differences in rates, fixing periods, fees, and eligibility requirements is critical. Below, we break down the key dimensions of each bank's offering.
Interest Rates
Interest rates are the single biggest driver of how much your home loan costs over its lifetime. Both AUB and PBB offer tiered fixed rates that reprice after a fixed period (typically 1, 2, 3, or 5 years), after which the rate reverts to the bank's prevailing rate — which is typically higher.
| Feature | Asia United Bank | Philippine Business Bank |
|---|---|---|
| Indicative Fixed Rate (1-year) | ~7.00% – 7.50% p.a. | ~7.50% – 8.25% p.a. |
| Indicative Fixed Rate (3-year) | ~7.50% – 8.00% p.a. | ~8.00% – 8.75% p.a. |
| Indicative Fixed Rate (5-year) | ~8.00% – 8.50% p.a. | ~8.50% – 9.25% p.a. |
| Reversion Rate | Based on prevailing AUB rate | Based on prevailing PBB rate |
Key takeaway: AUB's indicative rates are generally lower than PBB's across all fixing periods. However, both banks sit well above the 5.99% p.a. best refinance rate available through Nook. On a 3,000,000 loan over 20 years, the difference between 7.50% and 5.99% amounts to roughly 26,000–28,000 in annual savings — or over 500,000 across the life of the loan.
Monthly Amortization Comparison
To illustrate the real-world cost difference, here are estimated monthly amortizations for a 3,000,000 home loan over a 20-year term at different rates:
| Interest Rate | Lender Scenario | Est. Monthly Payment | Total Interest Paid |
|---|---|---|---|
| 5.99% p.a. | Best rate via Nook | ~21,470 | ~2,153,000 |
| 7.50% p.a. | AUB (3-year fixed) | ~24,060 | ~2,774,000 |
| 8.25% p.a. | PBB (3-year fixed) | ~25,500 | ~3,120,000 |
The gap between PBB's rate and the best available refinance rate through Nook could mean paying over 960,000 more in interest on a 3,000,000 loan over 20 years. Even compared to AUB, Nook's best rate saves roughly 620,000 in total interest.
Loan Terms and Eligibility
| Feature | Asia United Bank | Philippine Business Bank |
|---|---|---|
| Maximum Loan Amount | Up to 80% of appraised value | Up to 70%–80% of appraised value |
| Loan Tenure | Up to 20 years | Up to 20 years |
| Eligible Property Types | House & lot, condo, townhouse | House & lot, condo, townhouse |
| Salaried Borrowers | Yes | Yes |
| Self-Employed Borrowers | Yes (with requirements) | Yes (PBB is SME-friendly) |
| Minimum Loan Amount | ~500,000 | ~500,000 |
PBB's SME-focused roots mean it may be more willing to work with self-employed borrowers who have non-traditional income documentation. However, this flexibility often comes at the cost of higher interest rates. AUB's stricter documentation requirements are offset by better pricing for qualifying borrowers.
Fees and Charges
| Fee Type | Asia United Bank | Philippine Business Bank |
|---|---|---|
| Processing Fee | ~5,000 – 10,000 (non-refundable) | ~5,000 – 10,000 (non-refundable) |
| Appraisal Fee | ~3,500 – 5,000 | ~3,500 – 5,000 |
| Early Repayment Penalty | Typically 2%–3% within fixed period | Typically 3%–5% within fixed period |
| Documentary Stamp Tax | Borrower's account | Borrower's account |
| Mortgage Registration | Borrower's account | Borrower's account |
PBB's early repayment penalty is notably higher, which matters if you're planning to refinance again in the future or if you expect to pay down your loan early. AUB's penalty structure is more in line with the broader market. Both banks charge standard government-mandated fees (DST, registration) that apply regardless of lender.
Application Process and Speed
AUB has invested in digital infrastructure and typically offers a faster, more streamlined application process. Many borrowers report being able to get a loan offer within 5–7 business days for straightforward cases. Philippine Business Bank, being a smaller thrift bank, may have a more manual, relationship-driven process that can take longer — but this can work in your favor if your case requires more flexibility or personal negotiation.
For refinancing specifically, the timeline matters: the longer your application drags on, the longer you're stuck paying your current (higher) rate. This is one reason many borrowers choose to refinance through a broker like Nook, which submits to multiple lenders simultaneously and manages the process on your behalf — at zero cost to the borrower.
If you're also evaluating newer digital lenders, it's worth reading our GoTyme vs Philippine Business Bank comparison to see how PBB stacks up against a fintech challenger with a fast digital process.
Refinancing with AUB or PBB: Is It Worth It?
If you're currently with one of these banks and considering refinancing, the first question is: what rate are you paying now? If you're on AUB's or PBB's reversion rate (which kicks in after your fixed period ends), you could be paying anywhere from 8% to 10% or more — well above the market's best available rates.
Refinancing to 5.99% p.a. through Nook on a 5,000,000 loan over 20 years could reduce your monthly payment by roughly 7,000–10,000 depending on your current rate. Over the life of the loan, that's a saving of over 1,600,000. Nook's service is completely free — Nook is compensated by the lender, not the borrower.
For context on how other smaller banks compare in this space, see our GoTyme vs SB Finance home loan comparison, which explores how digital-first lenders are disrupting the market on price.
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Compare My Options →Frequently Asked Questions
Which is better for home loans — Asia United Bank or Philippine Business Bank?
For most borrowers, Asia United Bank offers better home loan rates and a more streamlined digital application process compared to Philippine Business Bank. PBB may be more accessible for self-employed borrowers or those with non-traditional income, but this typically comes at the cost of higher interest rates. That said, neither bank consistently offers the lowest rates in the market — refinancing through a multi-lender broker like Nook (nook.com.ph) can often secure a significantly lower rate, currently as low as 5.99% p.a.
What are the current home loan rates at Asia United Bank and Philippine Business Bank?
Both banks offer tiered fixed rates that depend on the fixing period chosen. AUB's indicative rates typically range from around 7.00% to 8.50% p.a. for 1- to 5-year fixed periods, while PBB's rates are generally slightly higher, ranging from approximately 7.50% to 9.25% p.a. Rates change periodically, so always confirm the latest rates directly with the bank or through a broker. The best refinance rate currently available through Nook is 5.99% p.a.
Can I refinance my AUB or PBB home loan through Nook?
Yes. Nook is a digital mortgage broker that works with multiple Philippine banks and lenders. If you currently have a home loan with Asia United Bank or Philippine Business Bank, Nook can help you compare offers from other lenders to see if you can get a lower rate. The service is 100% free to borrowers — Nook is paid by the lender if your loan is placed. You can start the process at nook.com.ph.
How much can I save by refinancing from PBB or AUB to a lower rate?
Savings depend on your current rate, loan balance, and remaining term. As an example, refinancing a 3,000,000 loan from 8.25% to 5.99% p.a. over 20 years reduces your monthly payment by approximately 2,030 — saving around 487,000 over the remaining loan term. On a larger loan of 5,000,000, the savings are proportionally greater, often exceeding 800,000 in total interest. Use Nook's free refinance calculator at nook.com.ph to get a personalized estimate.
Does Philippine Business Bank offer home loans for self-employed borrowers?
Yes. Philippine Business Bank has historically catered to SME owners and self-employed professionals, so it tends to be more flexible with income documentation compared to larger commercial banks. However, this flexibility may come with higher interest rates and stricter loan-to-value requirements. If you're self-employed and shopping for the best rate, it's still worth comparing multiple lenders through a broker like Nook, as some lenders offer competitive rates to self-employed borrowers with solid financials.
What is the maximum loan amount I can borrow from AUB or PBB for a home loan?
Both Asia United Bank and Philippine Business Bank typically lend up to 70%–80% of the appraised value of the property. The exact loan-to-value ratio depends on the property type, borrower profile, and current bank policies. There is generally no published hard cap on the maximum peso amount, but both banks will require the property to be appraised by a bank-accredited appraiser, and the loan amount will be based on the lower of the appraised value or purchase price.
What fees should I expect when applying for a home loan with AUB or PBB?
Both banks charge standard home loan fees including a non-refundable processing fee (typically 5,000–10,000), an appraisal fee (around 3,500–5,000), and government-mandated charges such as Documentary Stamp Tax and mortgage registration fees, which are borne by the borrower. PBB's early repayment penalty tends to be higher (3%–5% of outstanding balance within the fixed period) compared to AUB (2%–3%), so factor this in if you anticipate refinancing or prepaying your loan.