AUB vs Sterling Bank: Home Loan Overview
Asia United Bank (AUB) is a publicly listed commercial bank in the Philippines with a growing retail banking portfolio that includes home loans aimed at salaried employees, self-employed professionals, and OFWs. Sterling Bank of Asia, on the other hand, is a smaller thrift bank with a more limited home loan product lineup. While both are BSP-regulated institutions, they serve quite different borrower profiles and offer meaningfully different loan experiences.
If you're currently paying a home loan rate of 7% or higher with either bank — or any other lender — it's worth exploring whether AUB compares favorably to other challenger banks or whether refinancing through Nook at 5.99% p.a. makes more financial sense for your situation.
Interest Rate Comparison
| Feature | AUB | Sterling Bank |
|---|---|---|
| Indicative Fixed Rate (1-year) | ~7.50% p.a. | ~8.00% p.a. |
| Indicative Fixed Rate (3-year) | ~7.75% p.a. | ~8.25% p.a. |
| Indicative Fixed Rate (5-year) | ~8.25% p.a. | ~8.75% p.a. |
| Repricing After Fixed Period | Based on prevailing bank rate | Based on prevailing bank rate |
| Best Rate via Nook | 5.99% p.a. | |
Important: Rates above are indicative based on market data and are subject to change. The best way to get a confirmed rate is to apply through Nook, which compares offers from multiple BSP-regulated lenders — for free.
Monthly Payment Comparison
To illustrate the real-world impact of rate differences, here's how monthly payments compare on a 3,000,000 peso home loan over 20 years at different rate scenarios:
| Rate Scenario | Monthly Payment (approx.) | Total Interest Paid (approx.) |
|---|---|---|
| AUB at 7.50% | 24,059 | 2,774,160 |
| Sterling Bank at 8.00% | 25,093 | 3,022,320 |
| Nook Best Rate at 5.99% | 21,484 | 2,156,160 |
On a 3,000,000 peso loan, refinancing from a 7.50% AUB rate to Nook's best rate of 5.99% could save you approximately 2,575 pesos per month — or over 618,000 pesos across the life of the loan. That's a significant difference, and Nook's service is completely free to borrowers.
Loan Terms and Eligibility
| Feature | AUB | Sterling Bank |
|---|---|---|
| Minimum Loan Amount | ~500,000 | ~500,000 |
| Maximum Loan Amount | Up to 80% of appraised value | Up to 70% of appraised value |
| Loan Term | Up to 20 years | Up to 15 years |
| OFW Eligibility | Yes | Limited |
| Self-Employed Eligibility | Yes (with requirements) | Yes (with requirements) |
| Online Application | Partial digital process | Primarily branch-based |
AUB has a clear advantage in loan term flexibility, offering up to 20 years versus Sterling Bank's maximum of 15 years. Longer terms mean lower monthly payments, which can be important for cash flow management — though they also mean more interest paid over time. AUB also has a higher LTV ratio (80% vs 70%), allowing you to borrow more relative to your property's value.
Fees and Charges
| Fee Type | AUB | Sterling Bank |
|---|---|---|
| Processing Fee | ~5,000 – 10,000 | ~5,000 – 8,000 |
| Appraisal Fee | ~3,500 – 6,000 | ~3,000 – 5,000 |
| Notarial Fee | Applicable | Applicable |
| Mortgage Registration | Applicable | Applicable |
| Early Repayment Penalty | Typically 2-3% during fixed period | Typically 2-3% during fixed period |
Both banks charge similar upfront fees. When refinancing, these costs need to be weighed against the monthly savings you'll generate. Nook's mortgage specialists can help you calculate your break-even point — the number of months it takes for your rate savings to outweigh your refinancing costs — so you can make a fully informed decision.
Customer Experience and Accessibility
AUB has invested in improving its digital banking capabilities and has a broader branch network compared to Sterling Bank, which operates with a smaller footprint and more limited digital infrastructure. For borrowers who prefer managing their loan online or need the flexibility of multiple touchpoints, AUB is the more practical choice.
Sterling Bank's smaller size can sometimes mean more personalized service at the branch level, but this depends heavily on your location and which branch you're dealing with. If you're an OFW or an expat managing a Philippine property remotely, AUB's slightly stronger digital presence makes it the more accessible option.
For broader context on how smaller or newer lenders compare in the Philippine mortgage market, you may also want to read our DBP vs UCPB home loan comparison, which covers two government-backed lenders with very different borrower profiles.
Refinancing: When Does It Make Sense?
Whether you're currently with AUB, Sterling Bank, or any other lender, refinancing is worth exploring if:
- Your current interest rate is above 6.50% p.a.
- You have more than 5 years remaining on your loan term
- Your loan balance is at least 1,500,000 pesos
- Your property value has increased, improving your LTV ratio
- Your income or credit profile has improved since your original loan
Nook's platform lets you compare refinance offers from multiple Philippine banks in one place — without paying broker fees. The best available refinance rate through Nook is currently 5.99% p.a., which is meaningfully lower than the indicative rates offered directly by AUB or Sterling Bank.
Not sure which bank suits you?
Nook compares offers from 15+ banks for free. See your personalised options.
Compare My Options →Frequently Asked Questions
Is AUB or Sterling Bank better for a home loan in the Philippines?
For most borrowers, AUB is the stronger choice between the two. It offers longer loan terms (up to 20 years), a higher loan-to-value ratio of up to 80%, better digital accessibility, and is more accommodating for OFW applicants. Sterling Bank operates with a smaller product range and shorter maximum loan terms, making it less flexible for many homebuyers and refinancers.
What interest rates does AUB offer on home loans?
AUB's indicative home loan rates typically start around 7.50% p.a. for a 1-year fixed period, rising to approximately 8.25% p.a. for a 5-year fixed rate. These rates are subject to change and depend on your loan amount, property type, and credit profile. For the most competitive rates available, Nook compares multiple lenders and can offer qualified borrowers rates starting from 5.99% p.a.
What interest rates does Sterling Bank offer on home loans?
Sterling Bank's indicative home loan rates tend to be slightly higher than AUB's, typically starting around 8.00% p.a. for a 1-year fixed period. Their product range is narrower, and their maximum loan term of 15 years is shorter than many competitors. If you're comparing Sterling Bank, it's worth getting quotes from multiple lenders through Nook to ensure you're getting the most competitive rate.
Can I refinance my AUB or Sterling Bank home loan through Nook?
Yes. If you currently have a home loan with AUB or Sterling Bank and your rate is above 6.50% p.a., refinancing through Nook may reduce your monthly payments significantly. Nook is a 100% free service for borrowers — there are no broker fees. Simply submit your loan details and Nook will match you with the best available refinance offers from across the Philippine banking market.
How much can I save by refinancing from AUB's rate to Nook's best rate?
On a 3,000,000 peso loan over 20 years, refinancing from AUB's typical rate of 7.50% p.a. to Nook's best rate of 5.99% p.a. could save you approximately 2,575 pesos per month, or over 618,000 pesos in total interest across the life of the loan. Your actual savings will depend on your remaining loan balance, term, and the rate you qualify for. Use Nook's free calculator to get a personalized estimate.
Does Sterling Bank offer home loan refinancing?
Sterling Bank does offer home loan products including refinancing, but its range of refinance options is limited compared to larger commercial banks. If you're currently with Sterling Bank and looking to refinance, comparing offers from multiple lenders through Nook is strongly recommended to ensure you're not leaving a better rate on the table.
How long does it take to refinance a home loan in the Philippines?
The typical home loan refinance process in the Philippines takes between 4 to 8 weeks, depending on the lender, the completeness of your documents, and the speed of property appraisal. Nook helps streamline this process by coordinating with the bank on your behalf, so you spend less time on paperwork and follow-ups.