AUB vs Pag-IBIG Home Loan: Quick Comparison
Below is a side-by-side overview of Asia United Bank (AUB) and Pag-IBIG Fund (HDMF) home loan offerings. Note that Pag-IBIG rates shown are approximate, based on publicly available information, and subject to change. AUB rates are also indicative. Always verify current rates directly with each institution before applying.
| Feature | AUB | Pag-IBIG (HDMF) |
|---|---|---|
| Indicative Interest Rate | ~7.00% – 9.00% p.a. | ~6.375% – 10.00% p.a. (varies by loan amount & fixing period) |
| Loan Amount | Up to 80% of appraised value | Up to 6,000,000 (standard); up to 10,000,000 (Affordable Housing) |
| Loan Term | Up to 20 years | Up to 30 years |
| Eligibility | Filipino citizens, employed or self-employed, with good credit standing | Active Pag-IBIG Fund members with at least 24 monthly contributions |
| Processing Fee | Varies; typically 0.50% – 1.00% of loan amount | Relatively low; government-subsidized processing |
| Prepayment Penalty | May apply within lock-in period | Generally none after a certain period |
| Rate Fixing Options | 1, 2, 3, 5, 10 years (indicative) | 1, 3, 5, 10, 15, 20, 25, 30 years |
| Application Channel | Branch or online | Branch, online (Virtual Pag-IBIG) |
⚠️ Rates above are approximate and based on publicly available information as of 2024–2025. They are subject to change without notice. Please contact AUB and Pag-IBIG directly for the most current rates and terms.
Monthly Payment Comparison
Let's illustrate how monthly payments differ across a sample loan scenario. Assume a loan amount of 3,000,000 over 20 years.
| Scenario | Interest Rate | Est. Monthly Payment | Total Interest Paid |
|---|---|---|---|
| AUB (indicative) | 8.00% p.a. | ~25,093 | ~3,022,320 |
| Pag-IBIG (indicative) | 6.375% p.a. | ~22,212 | ~2,330,880 |
| Nook Partner Bank (best rate) | 5.99% p.a. | ~21,497 | ~2,159,280 |
On a 3,000,000 loan over 20 years, choosing Nook's best available rate of 5.99% over a typical AUB rate of 8.00% could save you approximately 863,040 in total interest. Even compared to Pag-IBIG's lower-end rate, Nook's rate still delivers meaningful savings — and the service is 100% free to you.
⚠️ Monthly payment estimates are for illustration only, computed using a standard amortization formula. Actual payments will vary based on exact rate, fees, and loan structure. All figures are approximate.
AUB Home Loan: Key Features
Asia United Bank (AUB) is a Philippine commercial bank that offers home loan products for property purchase, construction, and renovation. Here's what borrowers typically encounter with AUB:
- Competitive bank rates: AUB's home loan rates are in line with most private commercial banks, generally ranging from around 7% to 9% p.a. depending on the fixing period and borrower profile.
- Flexible loan terms: Loan terms of up to 20 years are available, giving borrowers a manageable repayment schedule.
- Loan-to-Value ratio: AUB typically finances up to 80% of the appraised value of the property, meaning you need at least 20% equity or down payment.
- Eligibility: Both employed and self-employed Filipino citizens (and some foreign nationals with Filipino spouses) may qualify. A good credit history and stable income are required.
- Application process: Applications can be submitted at AUB branches. Processing times vary depending on document completeness and appraisal scheduling.
AUB is a solid choice for borrowers who prefer dealing with a private commercial bank and need flexibility in loan purpose. However, its rates are not the lowest available in the market, and Nook can help you access better rates from our verified partner banks.
Pag-IBIG Home Loan: Key Features
The Pag-IBIG Fund (Home Development Mutual Fund or HDMF) is a government-run housing finance program that remains one of the most popular home loan options in the Philippines — particularly for regular employees in the formal sector. You may also want to read our comparison of Chinabank vs Pag-IBIG home loan rates and Landbank vs Pag-IBIG home loan rates for additional context on how Pag-IBIG stacks up against other lenders.
- Low entry rates: Pag-IBIG's rates can start as low as 6.375% p.a. for the lowest loan tiers (loans under 450,000), though rates increase for larger loan amounts. For typical home loan sizes of 2,000,000 to 6,000,000, rates generally range from 7.5% to 10% depending on the fixing period chosen.
- Long loan terms: Pag-IBIG allows repayment terms of up to 30 years, which is the longest available among Philippine home loan providers.
- Membership requirement: You must be an active Pag-IBIG member with at least 24 monthly contributions to qualify. Many OFWs and self-employed Filipinos voluntarily contribute to maintain eligibility.
- Loan limit: Standard Pag-IBIG loans cap at 6,000,000, though higher amounts may be available under special programs.
- Processing: Pag-IBIG processing can be slower than private banks due to high application volume, though the Virtual Pag-IBIG online platform has improved turnaround times.
Pag-IBIG is an excellent option for first-time homebuyers who are already contributing members, particularly for properties priced under 6,000,000. However, for refinancing purposes or larger loan amounts, Nook's partner bank rates may offer a better deal.
Which Is Better for Refinancing?
If you currently have a home loan — whether with AUB, Pag-IBIG, or any other lender — refinancing is worth exploring seriously. Most Filipino homeowners are paying between 7% and 10% p.a. on their existing home loans, especially if those loans were originated several years ago when rates were higher.
Through Nook, you can access refinance rates as low as 5.99% p.a. from our verified partner banks. This is significantly lower than what most borrowers are currently paying and lower than the going rates at both AUB and Pag-IBIG for most loan sizes.
Here's a key consideration: Pag-IBIG generally does not allow refinancing from Pag-IBIG to Pag-IBIG in most standard scenarios. If your current loan is with Pag-IBIG and you want to reduce your rate, your best path is typically to refinance with a private bank — which is exactly what Nook can help you do. Nook's service is completely free to borrowers; we are compensated by the bank, not by you.
For those currently with AUB, if your remaining loan term is still long and your current rate is above 6.50%, refinancing through Nook is almost certainly worth calculating. Use our free savings calculator to see exactly how much you could save.
Fees and Hidden Costs to Watch
Beyond the interest rate, both AUB and Pag-IBIG home loans come with associated fees that affect the true cost of your loan. Here's what to be aware of:
| Fee Type | AUB | Pag-IBIG |
|---|---|---|
| Processing / Application Fee | ~3,000 – 5,000 (indicative) | ~1,000 – 2,000 (indicative) |
| Appraisal Fee | Paid by borrower; varies by property | Paid by borrower; varies by property |
| Mortgage Registration (RD) | Borrower's responsibility | Borrower's responsibility |
| Fire Insurance | Required annually | Required; Pag-IBIG facilitates |
| MRI (Mortgage Redemption Insurance) | Required; premium included in payment | Required; premium included in payment |
| Prepayment Penalty | May apply during lock-in period | Generally waived after certain period |
⚠️ Fee amounts above are indicative only and subject to change. Confirm exact fees with AUB and Pag-IBIG before signing any documents.
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Compare My Options →Frequently Asked Questions
Which has lower interest rates — AUB or Pag-IBIG?
It depends on your loan amount and term. Pag-IBIG can offer rates as low as 6.375% p.a. for its smallest loan tiers, but for typical loan sizes between 2,000,000 and 6,000,000, rates are usually in the 7.5% to 10% range. AUB's indicative rates fall in a similar range of approximately 7% to 9%. For the lowest possible rate today, Nook's best available refinance rate of 5.99% p.a. from our partner banks is currently lower than both. Note that all rates are subject to change and you should verify current rates directly with each institution.
Can I refinance my Pag-IBIG home loan to a lower rate?
Yes — and one of the most common ways to do so is by refinancing your Pag-IBIG loan with a private bank. Pag-IBIG's own refinancing program has limitations, so many homeowners choose to take out a new loan from a private bank to pay off their Pag-IBIG balance and benefit from a lower rate or better terms. Nook can help you compare offers from multiple partner banks at no cost to you, with the best available rate currently at 5.99% p.a.
Can I use my Pag-IBIG contributions while refinancing to AUB or another private bank?
When you refinance your Pag-IBIG home loan with a private bank, your Pag-IBIG membership contributions remain intact and can be used for future purposes. However, you will no longer be able to access your Pag-IBIG housing loan benefit for that particular property once it is refinanced out. Your accumulated Pag-IBIG savings (TAV) remain yours and can still be withdrawn upon retirement or other qualifying events.
How long does it take to get approved for a home loan with AUB vs Pag-IBIG?
AUB, as a private commercial bank, typically processes home loan applications within 5 to 15 business days once all documents are submitted. Pag-IBIG can take longer — sometimes 4 to 8 weeks — due to higher application volume and government processing requirements. If speed is a priority, private banks including Nook's partner banks generally have faster turnaround times.
What is the maximum loan amount I can get from AUB vs Pag-IBIG?
AUB can finance up to 80% of the property's appraised value, with no strict published cap on the maximum loan amount for qualified borrowers. Pag-IBIG's standard home loan program has a ceiling of 6,000,000, though this may be higher under specific housing programs. For high-value properties, AUB or other private banks may be better suited to your needs.
Is Nook's refinancing service really free?
Yes. Nook is a digital mortgage broker — we are compensated by the bank that ultimately provides your home loan, not by you. There is no fee charged to the borrower at any stage of the process. Nook helps you compare verified rates from multiple partner banks, handles the paperwork coordination, and guides you through the entire refinancing process at zero cost to you.
What documents do I need to refinance my home loan through Nook?
Standard documents for a home loan refinance in the Philippines include: valid government-issued ID, proof of income (payslips, ITR, or audited financial statements for the self-employed), Certificate of Employment, latest Statement of Account from your current lender, copy of the Transfer Certificate of Title (TCT), tax declaration, and recent utility bills. Nook will provide you with a complete checklist and guide you through document preparation step by step.
How much can I save by refinancing from AUB to Nook's best rate?
The savings depend on your current rate, remaining loan balance, and remaining term. As an illustration: on a 3,000,000 loan with 15 years remaining, switching from a rate of 8.00% p.a. to 5.99% p.a. could reduce your monthly payment by approximately 3,200 and save you over 576,000 in total interest over the remaining loan life. Use Nook's free savings calculator for a personalized estimate based on your actual loan details.