AUB vs Landbank

AUB vs Landbank Home Loan: Quick Comparison

Both AUB and Landbank are established Philippine institutions offering home loan products, but they serve somewhat different borrower profiles. AUB is a private commercial bank known for straightforward banking products, while Landbank is a government-owned bank primarily serving the agricultural sector, local government units, and public sector employees. Below, we compare their home loan offerings across the dimensions that matter most to borrowers.

Important note: Rates shown for both AUB and Landbank are approximate figures based on publicly available information and are subject to change without notice. Always verify current rates directly with each bank before making a decision.

Interest Rates: How AUB and Landbank Compare

Interest rates are the single biggest factor in determining how much your home loan will cost you over its lifetime. Both AUB and Landbank offer fixed-rate periods followed by repricing, which is the standard structure for Philippine bank home loans.

AUB's indicative rates typically start around 7.00% p.a. for a 1-year fixing period, moving higher for longer fixed terms. Landbank's rates are broadly similar, though Landbank offers some programs specifically designed for government employees that may carry slightly different terms.

To put this in perspective: on a loan of 3,000,000 over 20 years at 8.00% p.a., your monthly amortization would be approximately 25,093. At Nook's best available refinance rate of 5.99% p.a., that same loan would cost approximately 21,487 per month — a saving of roughly 3,606 every single month, or more than 864,000 over 20 years.

Even if you're currently on a 7.00% rate, refinancing to 5.99% on a 3,000,000 loan could save you around 1,400 per month — that adds up to 336,000 over 20 years, all for a free service through Nook.

Eligibility Requirements

AUB Home Loan Eligibility:

• Filipino citizen or foreign national with valid visa (for certain property types)
• At least 21 years old at time of application; not more than 65 years old at loan maturity
• Employed for at least 2 years, or self-employed with at least 2 years profitable business operation
• Minimum gross monthly income requirements apply (typically around 40,000 per month depending on loan amount)

Landbank Home Loan Eligibility:

• Filipino citizen
• At least 21 years old; loan must mature before age 70
• Government employees, regular private employees, or self-employed individuals
• Must have a stable source of income; documentary requirements vary by borrower type
• Some Landbank programs are specifically designed for farmers, fisherfolk, and agrarian reform beneficiaries

Both banks require you to be in good credit standing with no history of default on existing obligations. Landbank's government-focused programs may offer more accessible terms for public sector employees, but private borrowers may find AUB more accommodating.

Application Process and Speed

AUB: AUB has been modernizing its banking services and allows applications through its branches and, increasingly, digital channels. Processing times are typical for Philippine commercial banks — expect 2 to 6 weeks from complete document submission to loan approval.

Landbank: As a government bank, Landbank's processes tend to be more document-intensive and may take longer. Applicants should expect a processing period of 4 to 8 weeks or more, particularly for larger loan amounts. Branch visits are generally required. If you're comparing Landbank to other lenders, our Landbank vs Security Bank comparison explores how processing speed and rates differ across these institutions.

Refinancing through Nook: Nook's digital-first approach streamlines the entire refinance process. Instead of visiting multiple banks and submitting separate applications, Nook submits your profile to multiple partner banks simultaneously. This saves weeks of back-and-forth and ensures you're seeing the best rates available — all at no cost to you.

Fees and Other Costs

When comparing home loans, it's critical to look beyond the headline interest rate. Both AUB and Landbank charge fees that add to the total cost of your loan:

• Processing / Appraisal Fee: Typically 1% of the loan amount, or a fixed minimum (whichever is higher). On a 3,000,000 loan, this could be 30,000 or more.
• Appraisal Fee: Paid to an accredited appraiser to value the property. Usually ranges from 3,000 to 8,000 depending on property location and size.
• Mortgage Registration Fee: Government fee for registering the mortgage with the Registry of Deeds. Typically 0.25% to 0.50% of loan amount.
• Documentary Stamp Tax (DST): 1.5% of loan amount — a significant cost both banks pass on to borrowers.
• Insurance: Both banks require MRI (Mortgage Redemption Insurance) and fire insurance, often bundled into the monthly amortization.

When refinancing through Nook, some partner banks offer promotions that waive or reduce certain fees. Ask your Nook advisor about current promotions when you apply.

Should You Refinance Instead of Choosing Between AUB and Landbank?

If you already have a home loan with AUB, Landbank, or any other Philippine bank, this comparison may be the nudge you need to explore refinancing. Philippine bank rates have changed significantly in recent years, and many homeowners are locked into rates of 8%, 9%, or even higher — rates that were set years ago and have never been revisited.

Refinancing your home loan through Nook could give you access to rates as low as 5.99% p.a. — well below what most borrowers are currently paying at either AUB or Landbank. Here's what the numbers look like for common loan balances:

All calculations above assume a 20-year remaining term. Actual savings depend on your specific loan balance, remaining term, and the rate you qualify for. Nook's service is completely free to the borrower — Nook is paid by the bank, not by you.

Curious how Landbank stacks up against other options? See our Landbank vs RCBC comparison for another angle on how government bank rates measure up to private bank offerings.