Bank of Commerce vs Philippine Business Bank: Home Loan Overview
Bank of Commerce (BankCom) is a full-service commercial bank with a nationwide branch network, offering home loans primarily targeted at salaried employees and self-employed professionals. Philippine Business Bank (PBB), meanwhile, has carved a niche serving small-to-medium enterprise owners and entrepreneurs — a segment that often finds it harder to qualify with the largest universal banks.
Both banks sit outside the top-tier "Big Four" (BDO, BPI, Metrobank, Security Bank), which means their headline rates can sometimes be competitive, but their processing capacity and digital infrastructure are more limited. If you have already seen a comparison of Bank of Commerce versus GoTyme, you will know that BankCom competes closely with newer digital-first lenders on price but lags on turnaround time.
Interest Rate Comparison
Interest rates at both banks are not publicly listed with full transparency and are subject to change based on the borrower's profile, loan-to-value ratio, and fixing period. Based on market data available at time of writing, indicative ranges are as follows:
| Fixing Period | Bank of Commerce (indicative) | Philippine Business Bank (indicative) | Best Rate via Nook |
|---|---|---|---|
| 1 Year Fixed | 7.50% – 8.50% p.a. | 7.25% – 8.75% p.a. | 5.99% p.a. |
| 3 Years Fixed | 7.75% – 9.00% p.a. | 7.50% – 9.25% p.a. | From 6.50% p.a. |
| 5 Years Fixed | 8.00% – 9.50% p.a. | 8.00% – 9.75% p.a. | From 6.75% p.a. |
These are indicative ranges only. Your actual rate will depend on your credit profile, the property type, and the lender's current promotional offers. The best way to get an accurate number is to apply through Nook and receive competing live offers.
Monthly Payment Comparison: Sample Calculation
To make the rate gap tangible, here is a sample calculation for a 3,000,000 peso home loan over 20 years at three different rates:
| Scenario | Rate | Approx. Monthly Payment | Total Interest Paid |
|---|---|---|---|
| Bank of Commerce (mid-range) | 8.00% p.a. | 25,093 | 3,022,320 |
| Philippine Business Bank (mid-range) | 8.25% p.a. | 25,611 | 3,146,640 |
| Best rate via Nook | 5.99% p.a. | 21,491 | 2,157,840 |
The difference between an 8.00% loan and Nook's best available 5.99% rate is approximately 3,602 pesos per month — that is 864,480 pesos in total savings over a 20-year term on a 3,000,000 peso loan. For larger loan amounts, the savings scale proportionally.
Fees and Charges
Both banks charge a range of upfront and ongoing fees that add to the true cost of borrowing. Below is an indicative comparison:
| Fee Type | Bank of Commerce | Philippine Business Bank |
|---|---|---|
| Processing Fee | 10,000 – 15,000 (indicative) | 10,000 – 20,000 (indicative) |
| Appraisal Fee | 3,500 – 6,000 | 3,500 – 7,000 |
| Annual Service Fee | Varies by product | Varies by product |
| Early Repayment Penalty | Typically applies within fixed period | Typically applies within fixed period |
| Late Payment Fee | Charged on overdue amount | Charged on overdue amount |
Always request the full fee schedule in writing before signing any loan documents. Fees can meaningfully affect the effective cost of your loan, especially if you plan to refinance or repay early within the first few years.
Loan Features and Eligibility
| Feature | Bank of Commerce | Philippine Business Bank |
|---|---|---|
| Minimum Loan Amount | 500,000 (indicative) | 500,000 (indicative) |
| Maximum Loan Amount | Up to 80% of appraised value | Up to 80% of appraised value |
| Loan Term | Up to 20 years | Up to 20 years |
| Eligible Borrowers | Salaried, self-employed, OFWs | Salaried, SME owners, self-employed |
| Property Types | House and lot, condo, townhouse | House and lot, condo, commercial-residential |
| Online Application | Partial (branch follow-up required) | Partial (branch follow-up required) |
| Typical Processing Time | 3 – 6 weeks | 3 – 6 weeks |
Philippine Business Bank's willingness to consider SME owners and entrepreneurs with variable income is a genuine differentiator. BankCom, while also accepting self-employed applicants, tends to apply stricter income documentation requirements. If you are comparing PBB with another digital-first alternative, the GoTyme vs Philippine Business Bank comparison is also worth reading.
Refinancing with Either Bank: What to Expect
If you are an existing borrower at either bank and you are approaching the end of your fixed-rate period, you are likely facing a repricing to a higher rate. This is the most common trigger for refinancing — and it is one of the best windows to act.
Refinancing to a lender offering 5.99% from a current rate of 8.00% or above can deliver immediate monthly savings. The process typically involves a new property appraisal, submission of updated income documents, and a transfer of the Title and mortgage annotation. Nook handles the coordination with multiple lenders simultaneously, so you only need to submit your documents once.
Nook's service is completely free to the borrower — lenders pay a referral fee, not you. There are no hidden charges for using the platform.
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Compare My Options →Frequently Asked Questions
Which is better for a home loan: Bank of Commerce or Philippine Business Bank?
It depends on your borrower profile. Philippine Business Bank may be more accommodating for self-employed individuals and SME owners, while Bank of Commerce is a solid option for salaried employees. That said, both banks' indicative rates sit between 7.25% and 9.50%, which is significantly higher than the 5.99% p.a. best rate currently available through Nook. For most borrowers, comparing offers across multiple lenders through Nook will deliver a better outcome than going directly to either bank alone.
How much can I save by refinancing away from Bank of Commerce or Philippine Business Bank?
On a 3,000,000 peso loan over 20 years, refinancing from an 8.00% rate to Nook's best available rate of 5.99% saves approximately 3,602 pesos per month, or around 864,480 pesos in total interest over the loan term. For a 5,000,000 peso loan, the monthly saving rises to roughly 6,003 pesos. Use Nook's free refinancing calculator to get a personalised estimate based on your actual loan balance and remaining term.
Does Philippine Business Bank offer home loans to self-employed borrowers?
Yes. Philippine Business Bank has a reputation for being more flexible with self-employed applicants, business owners, and entrepreneurs compared to some larger banks. You will typically need to provide ITR (Income Tax Return) for the past two years, audited financial statements, and business registration documents. Approval is subject to the bank's credit assessment.
Can I refinance my existing Bank of Commerce home loan?
Yes, you can refinance a Bank of Commerce home loan to another lender if you can secure a better rate. The most practical time to do this is when your current fixed-rate period is expiring, as there is typically no early repayment penalty at that point. Nook can help you refinance by submitting your application to multiple lenders at once, finding the most competitive offer, and managing the paperwork — at no cost to you.
What documents do I need to apply for a home loan at Bank of Commerce or Philippine Business Bank?
Both banks generally require: a completed application form, valid government-issued IDs, proof of income (payslips and certificate of employment for salaried applicants, or ITR and financial statements for self-employed), a copy of the Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT), a tax declaration for the property, and a vicinity map or floor plan. Additional documents may be required depending on your borrower profile and the property type.
How long does it take to get a home loan approved at these banks?
Processing times at both Bank of Commerce and Philippine Business Bank typically range from three to six weeks from submission of a complete set of documents. Delays are common when documents are incomplete or when the property appraisal takes longer than expected. Applying through Nook can streamline this process since Nook's team pre-checks your documents before submission and liaises directly with the lender on your behalf.
Is Nook's refinancing service really free?
Yes. Nook does not charge borrowers any fees for its service. Nook earns a referral fee from the lending institution once your loan is successfully disbursed. This means you receive independent advice and access to multiple lender offers at no out-of-pocket cost. There are no hidden charges, and you are never obligated to accept any offer presented to you.