Bank of Commerce vs SB Finance: Home Loan Overview
Choosing between Bank of Commerce and SB Finance for a home loan — or deciding whether to refinance away from either — requires a close look at rates, lock-in periods, fees, and overall borrower experience. Both lenders target the mid-market Filipino homeowner, but they come from very different institutional backgrounds.
Bank of Commerce is a traditional commercial bank with a branch-based model, majority-owned by San Miguel Corporation. It offers standard home loan products but is not widely known as a market leader in mortgage rates or digital accessibility.
SB Finance is a consumer finance company jointly owned by Security Bank and Metrobank — two of the Philippines' largest banks. This backing gives SB Finance significant funding muscle and allows it to offer competitive rates with a more modern, digitally-assisted application experience.
Interest Rate Comparison
| Feature | Bank of Commerce | SB Finance |
|---|---|---|
| Indicative Starting Rate | ~7.50% p.a. | ~6.75% p.a. |
| Fixed Rate Period Options | 1, 2, 3 years | 1, 2, 3, 5, 10 years |
| Rate After Fixed Period | Repriced to prevailing rate | Repriced to prevailing rate |
| Best Rate Currently Available via Nook | 5.99% p.a. | |
SB Finance's longer fixed-rate period options — including 5-year and 10-year locks — give borrowers significantly more payment predictability than Bank of Commerce, which typically caps fixed periods at 3 years. For a borrower with a 3,000,000 loan, the difference between 7.50% and 6.75% translates to roughly 19,000 pesos in interest savings in the first year alone.
That said, both rates are considerably higher than the 5.99% p.a. available through Nook's refinancing platform — making refinancing a compelling option for existing borrowers at either institution.
Monthly Payment Comparison (Illustrative)
The table below illustrates estimated monthly amortizations for a 3,000,000 peso home loan over 20 years at each lender's indicative rate versus the best rate available through Nook.
| Lender / Rate | Monthly Payment (est.) | Total Interest Paid (est.) |
|---|---|---|
| Bank of Commerce (~7.50%) | 24,058 | 2,773,920 |
| SB Finance (~6.75%) | 22,781 | 2,467,440 |
| Nook Best Rate (5.99%) | 21,474 | 2,153,760 |
Refinancing from Bank of Commerce's indicative rate to 5.99% through Nook could save a borrower approximately 620,160 pesos in total interest over the life of a 20-year, 3,000,000 loan. Even switching from SB Finance's more competitive rate could save over 313,680 pesos — a meaningful difference for any Filipino household.
Fees and Charges
| Fee Type | Bank of Commerce | SB Finance |
|---|---|---|
| Processing Fee | Typically 5,000–10,000 | Typically 5,000–10,000 |
| Appraisal Fee | 3,500–6,000 | 3,500–6,000 |
| Early Termination / Prepayment Penalty | Usually applies within lock-in | Usually applies within lock-in |
| Broker / Arrangement Fee (via Nook) | Free — Nook charges borrowers nothing | |
Both banks charge broadly similar upfront fees. Prepayment penalties during the fixed-rate lock-in period are standard practice at both institutions, so borrowers planning to refinance should time their application to coincide with the end of their current lock-in period. Nook's specialists can help you identify the optimal window to switch.
Loan Parameters and Eligibility
| Parameter | Bank of Commerce | SB Finance |
|---|---|---|
| Minimum Loan Amount | 500,000 | 500,000 |
| Maximum Loan Amount | Up to 80% of appraised value | Up to 80% of appraised value |
| Loan Tenure | Up to 20 years | Up to 20 years |
| Eligible Borrowers | Filipino citizens, some resident aliens | Filipino citizens, OFWs |
| OFW-Friendly | Limited | Yes, with dedicated OFW program |
SB Finance has a notable advantage for Overseas Filipino Workers (OFWs), offering a dedicated program with documentation flexibility that Bank of Commerce does not prominently feature. If you're an OFW looking to refinance, you may also want to review our GoTyme vs SB Finance comparison to see how another digitally-focused lender stacks up.
Application Process and Turnaround
| Factor | Bank of Commerce | SB Finance |
|---|---|---|
| Application Channel | Branch-based, limited online | Online and branch |
| Document Submission | Physical documents required | Online upload available |
| Approval Turnaround | 3–5 weeks (estimated) | 2–4 weeks (estimated) |
| Dedicated Mortgage Specialist | Available in-branch | Available online and in-branch |
SB Finance's digital-first approach gives it a meaningful edge in convenience and speed. Bank of Commerce's more traditional branch-based model may suit borrowers who prefer face-to-face interactions but can slow down the process for those who value efficiency.
For borrowers who want to compare multiple banks simultaneously — without visiting multiple branches or submitting documents repeatedly — Nook's platform handles everything in one place, completely free.
Which Is Better for Refinancing?
If your current home loan is with Bank of Commerce and you're still within a high-rate lock-in period, refinancing to SB Finance could provide modest savings. But the smarter move for most borrowers is to use Nook to access the lowest available rate across multiple lenders, rather than simply switching from one to the other.
Borrowers currently with SB Finance who locked in rates above 7% during previous rate cycles may also find significant savings by refinancing through Nook — even given SB Finance's relatively competitive current offerings.
If you're curious how SB Finance compares against other newer digital lenders, our GoTyme vs SB Finance home loan comparison provides useful additional context. And if you want to see how Bank of Commerce stacks up against a digital challenger, check out our Bank of Commerce vs GoTyme comparison.
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Compare My Options →Frequently Asked Questions
Is SB Finance a real bank?
SB Finance is not a commercial bank but a consumer finance company licensed by the Bangko Sentral ng Pilipinas (BSP). It is jointly owned by Security Bank and Metrobank, two of the Philippines' largest banks, which gives it strong institutional backing and funding capacity. Its home loan products are fully regulated and legitimate.
How do Bank of Commerce and SB Finance home loan rates compare?
SB Finance generally offers more competitive starting rates — around 6.75% p.a. — compared to Bank of Commerce's indicative rates of around 7.50% p.a. SB Finance also offers longer fixed-rate period options (up to 10 years), giving borrowers more payment stability. However, both lenders' rates are higher than the 5.99% p.a. currently available through Nook's refinancing platform.
Can I refinance my Bank of Commerce home loan through Nook?
Yes. Nook works with a panel of Philippine lenders and can help you refinance your existing Bank of Commerce home loan to a lower rate. The service is completely free to you as a borrower — Nook is compensated by the receiving bank, not by you. You can start a refinance application online in minutes.
What is the minimum loan amount for SB Finance and Bank of Commerce home loans?
Both SB Finance and Bank of Commerce have a minimum home loan amount of approximately 500,000 pesos. Maximum loan amounts are typically up to 80% of the property's appraised value, subject to the borrower's income qualification and creditworthiness.
How much can I save by refinancing from Bank of Commerce to a lower rate?
On a 3,000,000 peso loan over 20 years, refinancing from Bank of Commerce's indicative rate of 7.50% to the 5.99% p.a. available through Nook could save you approximately 620,160 pesos in total interest, or roughly 1,584 pesos per month. Savings vary depending on your loan balance, remaining term, and the rate you qualify for.
Does SB Finance have a home loan program for OFWs?
Yes. SB Finance offers a dedicated home loan program for Overseas Filipino Workers (OFWs) with documentation flexibility to accommodate borrowers who are based abroad. This is an area where SB Finance has a clear advantage over Bank of Commerce, which has more limited OFW-specific offerings.
Will I pay a penalty for refinancing away from Bank of Commerce or SB Finance?
Both banks typically impose prepayment or early termination penalties if you refinance during your fixed-rate lock-in period. Once the lock-in period ends, you can generally refinance penalty-free. Nook's mortgage specialists can review your current loan terms and help you identify the best time to refinance to avoid unnecessary penalties.
How long does it take to get approved for a home loan with SB Finance vs Bank of Commerce?
SB Finance's digital application process typically results in approval within 2–4 weeks, while Bank of Commerce's branch-based approach may take 3–5 weeks. Timelines vary based on property type, completeness of documents, and lender workload. Applying through Nook can streamline the process by ensuring your documents are complete before submission.