AUB vs Philippine Business Bank: Home Loan Overview
Asia United Bank (AUB) and Philippine Business Bank (PBB) both serve the Filipino mortgage market, but they come from different positioning. AUB is a publicly listed universal bank with a broader retail banking footprint, while Philippine Business Bank focuses more on the SME and middle-market segment. For home loan borrowers, this difference matters in terms of product range, digital accessibility, and how proactively each bank markets its mortgage products.
Neither bank ranks among the country's largest mortgage lenders — that space is dominated by BDO, BPI, and Metrobank — but both offer home loan products that are worth comparing if you already bank with one of them or have received an offer. If you're starting fresh and comparing options, you may also want to read our AUB vs CIMB home loan comparison to see how AUB stacks up against a digital challenger bank.
Interest Rates Compared
Interest rates are the single biggest driver of your monthly repayment and total loan cost over time. Here's how AUB and Philippine Business Bank generally compare on indicative home loan rates:
| Fixed Period | AUB (Indicative) | Philippine Business Bank (Indicative) |
|---|---|---|
| 1-Year Fixed | 7.50% – 8.25% p.a. | 7.75% – 8.50% p.a. |
| 2-Year Fixed | 7.75% – 8.50% p.a. | 8.00% – 8.75% p.a. |
| 3-Year Fixed | 8.00% – 8.75% p.a. | 8.25% – 9.00% p.a. |
| 5-Year Fixed | 8.50% – 9.25% p.a. | 8.75% – 9.50% p.a. |
Important: These are indicative ranges based on publicly available information and typical market positioning. Actual rates depend on your loan amount, LTV ratio, income profile, and prevailing BSP benchmark rates at time of application. Always request a formal loan offer from the bank directly — or let Nook do it for you across multiple lenders at once.
For context, the best refinance rate currently available through Nook is 5.99% p.a. — meaningfully lower than what either bank advertises as a standard product rate.
Monthly Repayment Comparison
To make the rate difference concrete, here's what a 3-year fixed rate would cost you monthly on a 3,000,000 peso home loan over a 20-year term, across AUB, Philippine Business Bank, and Nook's best available rate:
| Lender / Rate | Monthly Repayment | Total Interest Paid (20 yrs) |
|---|---|---|
| AUB at 8.25% p.a. | 25,680 | 3,163,200 |
| Philippine Business Bank at 8.75% p.a. | 26,540 | 3,369,600 |
| Nook best rate at 5.99% p.a. | 21,490 | 2,157,600 |
On a 3,000,000 peso loan, refinancing to Nook's best rate versus staying with an AUB rate of 8.25% could save you approximately 4,190 pesos per month — or over 1,000,000 pesos across the life of the loan. Versus Philippine Business Bank at 8.75%, the savings are even larger.
These figures use simplified flat-rate approximations for illustrative purposes. Your actual savings will depend on your remaining loan balance, term, and the specific rate you qualify for.
Loan Features and Terms
| Feature | AUB | Philippine Business Bank |
|---|---|---|
| Minimum Loan Amount | ~500,000 | ~500,000 |
| Maximum Loan Amount | Up to 70–80% of appraised value | Up to 70–80% of appraised value |
| Maximum Loan Term | Up to 20 years | Up to 20 years |
| Fixed Rate Periods Available | 1, 2, 3, 5 years | 1, 2, 3, 5 years |
| Repricing After Fixed Period | Based on prevailing bank rate | Based on prevailing bank rate |
| Early Repayment Penalty | Typically applies within fixed period | Typically applies within fixed period |
| Online Application | Available via AUB portal | Limited digital capability |
AUB has invested more heavily in digital banking infrastructure, which can make the application and monitoring process smoother. Philippine Business Bank's home loan product is functional but its digital servicing capabilities are more limited, which may matter to borrowers who prefer managing their loan online.
Fees and Charges
Both banks charge standard mortgage-related fees. These are typical across Philippine lenders and include:
- Processing fee: Usually 3,000 – 5,000 pesos, sometimes waived during promotions
- Appraisal fee: 3,000 – 6,000 pesos depending on property location and size
- Notarial and documentation fees: Variable, typically 2,000 – 5,000 pesos
- Mortgage Redemption Insurance (MRI): Required by both banks, premium varies by age and loan amount
- Fire insurance: Required annually, typically 0.15% – 0.25% of property value per year
- Pre-termination penalty: Typically 2% – 5% of outstanding balance if settled within the fixed-rate lock-in period
When refinancing through Nook, you will incur standard transfer costs (legal fees, registration, etc.), but Nook's brokerage service itself is completely free to you as the borrower. Nook is compensated by the receiving bank, not by you.
Refinancing from AUB or Philippine Business Bank
If you currently have a home loan with either AUB or Philippine Business Bank and your fixed-rate period is expiring — or has already expired and you've rolled into a variable/repriced rate — you are likely paying more than you need to.
Here's the typical refinancing timeline through Nook:
- Week 1: Submit your details to Nook online (free, takes about 10 minutes)
- Weeks 1–2: Nook requests loan offers from multiple lenders on your behalf
- Weeks 2–3: You review and compare real offers side by side
- Weeks 3–8: Nook guides you through documentation, bank processing, and approval
- Week 8–12: Loan is transferred, old loan is discharged, new lower rate kicks in
The key question to ask yourself: what rate are you paying right now? If it's above 7%, there's a strong chance refinancing will put money back in your pocket every month. You may also find it useful to explore how other mid-tier banks compare — for example, our DBP vs UCPB home loan comparison covers two other government-backed options that some borrowers overlook.
Who Should Choose AUB?
- Borrowers who already have a deposit or business account with AUB and want relationship banking benefits
- Those who prefer a digitally accessible bank for loan servicing
- Borrowers in Metro Manila or key cities where AUB has a stronger branch presence
- Self-employed professionals who may find AUB's SME-adjacent underwriting more flexible
Who Should Choose Philippine Business Bank?
- Existing PBB clients who have an established relationship with the bank
- Borrowers in areas where PBB has a branch presence but AUB does not
- SME owners whose business banking is already with PBB and want to consolidate
Not sure which bank suits you?
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Compare My Options →Frequently Asked Questions
Is AUB or Philippine Business Bank better for a home loan?
For most borrowers, AUB offers a slightly better home loan product in terms of indicative rates, digital accessibility, and brand familiarity. However, the difference between the two banks is less important than the gap between either bank's standard rates and what you can access through a mortgage broker like Nook. The best refinance rate currently available through Nook is 5.99% p.a. — well below what AUB or Philippine Business Bank typically advertise.
What is the current home loan rate at AUB?
AUB's home loan rates are not always publicly listed and can vary based on your loan amount, LTV ratio, and credit profile. Indicatively, AUB rates tend to fall in the 7.50% to 9.25% p.a. range depending on the fixed period chosen. We recommend requesting a formal quote directly from AUB or through Nook, which will approach multiple lenders on your behalf for free.
What is the current home loan rate at Philippine Business Bank?
Philippine Business Bank's home loan rates are similarly variable and not always prominently advertised. Indicative rates typically range from 7.75% to 9.50% p.a. depending on fixed period and borrower profile. Because PBB is more focused on the SME segment, their mortgage terms can sometimes be negotiated for existing business clients.
Can I refinance my AUB home loan to get a lower rate?
Yes, absolutely. If your AUB home loan has completed its fixed-rate period, you are free to refinance to another lender without penalty in most cases. Nook can help you compare real offers from multiple Philippine banks and find you the lowest available rate — currently as low as 5.99% p.a. The service is 100% free to you as the borrower.
Can I refinance my Philippine Business Bank home loan?
Yes. Like other Philippine banks, Philippine Business Bank applies a pre-termination penalty only during the fixed-rate lock-in period. Once that period has passed, you can refinance freely. If you are currently on a repriced (variable) rate with PBB, now is an ideal time to explore refinancing. Nook can handle the entire process for you at no cost.
How much can I save by refinancing from AUB or PBB to Nook's best rate?
The savings depend on your outstanding loan balance and current rate. As an example: on a 3,000,000 peso loan with 15 years remaining, moving from 8.25% to 5.99% p.a. could save you approximately 3,800 to 4,200 pesos per month, or close to 700,000 pesos over the remaining term. Use Nook's free refinance calculator or speak to a Nook advisor to get a personalized savings estimate.
Does Nook charge a fee to help me refinance?
No. Nook's mortgage brokerage service is completely free to the borrower. Nook earns a referral fee from the bank that receives your loan — similar to how travel booking platforms work. You pay nothing extra, and the rate you receive is the same (or better) than applying directly to the bank yourself.
How long does refinancing take through Nook?
The typical refinancing process through Nook takes 8 to 12 weeks from application to fund release. This includes bank processing time, property appraisal, and legal documentation. Nook guides you through every step and follows up with the bank on your behalf so you don't have to chase paperwork yourself.