AUB vs UnionBank

AUB vs UnionBank Home Loan: Quick Overview

Asia United Bank (AUB) and UnionBank of the Philippines are both established commercial banks offering home loan products to Filipino borrowers. However, they differ significantly in their target markets, rate transparency, and eligibility flexibility. This comparison will help you decide which bank is the better fit — or whether refinancing your existing loan with either institution makes financial sense.

Note: Interest rates and loan terms are subject to change. Always verify current rates directly with the bank or through Nook before making a decision.

Interest Rates: How AUB and UnionBank Compare

One of the biggest challenges when evaluating AUB home loans is that the bank does not prominently publish its home loan interest rates online. Borrowers typically need to visit a branch or request a formal quotation before knowing what rate they qualify for. This lack of transparency can make comparison shopping more time-consuming.

UnionBank, by contrast, offers a clearly defined 1-year fixed rate of 7.00% p.a. for standard home loans and home equity products. This rate is openly available through Nook and applies to a broad range of borrower profiles.

To put this in perspective, consider a borrower with a 3,000,000 peso home loan on a 20-year term:

• At 7.00% p.a. (UnionBank via Nook): approximate monthly repayment of around 23,259 pesos
• At 8.50% p.a. (a common existing rate many homeowners are paying): approximate monthly repayment of around 26,035 pesos
• Monthly savings: approximately 2,776 pesos
• Total savings over 20 years: approximately 666,240 pesos

If you're currently paying 8.50% or higher on an existing home loan — whether with AUB, another bank, or Pag-IBIG — refinancing to UnionBank's 7.00% rate through Nook could result in substantial savings. You can also explore how UnionBank stacks up against other lenders in our Pag-IBIG vs UnionBank home loan comparison.

Eligibility Requirements: Who Can Apply?

UnionBank's eligibility criteria are notably inclusive. The bank accepts applications from:

• Private and government employees
• BPO and call center workers
• OFWs and seafarers
• Self-employed individuals and business owners
• Licensed professionals (doctors, lawyers, engineers, etc.)

The minimum monthly income requirement is just 30,000 pesos, and the maximum debt-to-income (DTI) ratio allowed is 50% — meaning up to half of your gross monthly income can go toward loan repayments. This is a relatively generous threshold that helps more borrowers qualify.

AUB's published eligibility information is less detailed. Anecdotally, AUB tends to cater to higher-income borrowers and may have more restrictive requirements for OFWs and non-traditional employment types. If you fall into one of the employment categories UnionBank explicitly supports, it may be the faster and more certain path to approval.

Loan Purposes: What Can You Use the Loan For?

UnionBank stands out for the breadth of loan purposes it supports. Through Nook, you can apply for a UnionBank home loan for:

• Ready-for-Occupancy (RFO) units
• Pre-selling properties
• Reselling (secondary market)
• New construction
• Renovation
• Home equity (cash-out against existing property)
• Foreclosed properties

AUB covers the more common use cases — RFO, reselling, and renovation — but may not support pre-selling or foreclosed property purchases as broadly. If you're purchasing a pre-selling condo or an acquired asset property, UnionBank gives you more options.

It's also worth noting that UnionBank's home equity loan at 7.00% p.a. can be a powerful tool for homeowners who want to unlock the equity in their existing property for major expenses like tuition, medical bills, or business capital — without resorting to higher-rate personal loans.

Refinancing With Nook: Why It Matters

If you currently have a home loan with AUB — or with any other lender — and you're past the lock-in period, refinancing could significantly reduce your monthly payments and total interest costs. Nook is the Philippines' first digital mortgage broker, and its service is 100% free for borrowers. Nook does not charge application fees, processing fees, or broker commissions.

Here's how the refinancing math could work for you:

• Existing loan balance: 2,500,000 pesos
• Current rate: 9.00% p.a.
• Remaining term: 20 years
• Current monthly payment: approximately 22,491 pesos
• Refinanced rate (UnionBank via Nook): 7.00% p.a.
• New monthly payment: approximately 19,383 pesos
• Monthly savings: approximately 3,108 pesos
• Total savings over 20 years: approximately 745,920 pesos

Even after accounting for refinancing costs (documentary stamps, appraisal fees, and title transfer), many borrowers recover their refinancing expenses within 12 to 18 months and enjoy years of lower payments thereafter. Nook's advisors can help you calculate your break-even point at no charge.

For a broader view of how UnionBank rates compare across multiple lenders, see our First Metro Investment vs UnionBank home loan comparison.

Fees and Other Costs

Both AUB and UnionBank charge standard home loan fees common across Philippine banks. These typically include:

• Appraisal fee: 3,000 to 5,000 pesos (varies by property location and size)
• Documentary stamp tax: 1.5% of the loan amount
• Mortgage registration fee: based on loan amount per Registry of Deeds schedule
• Notarial fee: varies
• Annual MRI (Mortgage Redemption Insurance): varies by age and loan balance
• Annual fire insurance premium: varies by property value

AUB may also charge processing and handling fees that are disclosed only upon formal application. UnionBank's fee structure is more consistently documented. In both cases, it's important to request a full loan disclosure statement before signing anything.

When you apply through Nook, your advisor will walk you through every fee upfront so there are no surprises at closing.

Application Process and Turnaround Time

AUB processes home loan applications through its branch network. While the bank has modernized some of its services, the home loan application process still tends to be branch-centric, which can mean longer turnaround times and multiple in-person visits.

UnionBank, as one of the more digitally forward Philippine banks, offers a more streamlined process. When applying through Nook, the process is further simplified: Nook's digital platform guides you through document submission and coordinates directly with UnionBank on your behalf. Many borrowers receive conditional approval within a few business days of submitting complete documents.

Required documents typically include:

• Valid government-issued ID
• Proof of income (payslips, ITR, or audited financial statements for self-employed)
• Certificate of employment or business registration documents
• Property documents (TCT/CCT, tax declaration, location map)
• Filled-out application form