Bank of Commerce vs Security Bank: Home Loan Rate Comparison
When choosing between Bank of Commerce and Security Bank for a home loan or refinance, the interest rate is often the first — and most important — factor to examine. Even a 0.5% difference in rate can mean tens of thousands of pesos in additional interest over a 20-year loan term.
| Feature | Bank of Commerce | Security Bank |
|---|---|---|
| 1-Year Fixed Rate | ~8.50% p.a. (indicative) | 6.99% p.a. |
| 5-Year Fixed Rate | ~9.00% p.a. (indicative) | 6.75% p.a. |
| Home Equity Rate | Not widely published | 7.50% p.a. |
| Minimum Loan Amount | ₱500,000 | ₱1,000,000 |
| Typical Approval Time | 30–45 days | 23 days |
| Min. Monthly Income | ₱40,000 | ₱50,000 |
Note: Bank of Commerce rates are indicative and subject to change. Always verify current rates directly with the bank. Security Bank rates shown are as offered through Nook and are also subject to change.
Monthly Payment Comparison: ₱3,000,000 Home Loan Over 20 Years
To make this comparison concrete, here's how the two banks stack up on a ₱3,000,000 home loan with a 20-year term, based on their respective 5-year fixed rates:
| Scenario | Bank of Commerce (~9.00%) | Security Bank (6.75%) |
|---|---|---|
| Monthly Payment | ~26,993 | ~22,729 |
| Total Paid Over 20 Years | ~6,478,320 | ~5,454,960 |
| Total Interest Paid | ~3,478,320 | ~2,454,960 |
| Interest Savings vs. Bank of Commerce | — | ~1,023,360 |
That's over 1,000,000 pesos in potential savings by choosing Security Bank over a bank with higher rates — simply by refinancing at a more competitive rate. Through Nook, you can apply to Security Bank at no cost to you.
Eligibility and Borrower Types
Not all banks accept the same types of borrowers. This is especially important for OFWs, freelancers, and self-employed Filipinos who often struggle to qualify at more traditional institutions.
| Borrower Type | Bank of Commerce | Security Bank |
|---|---|---|
| Private Employee | ✓ | ✓ |
| Government Employee | ✓ | ✓ |
| Self-Employed | ✓ | ✓ |
| OFW / Seafarer | Limited | ✓ |
| Freelancer | Not specified | ✓ |
| BPO Worker | Not specified | ✓ |
| Professional (Doctor, Lawyer, etc.) | ✓ | ✓ |
Security Bank's broader borrower eligibility makes it particularly attractive for the modern Filipino workforce. If you're an OFW or freelancer, Security Bank is a significantly more accessible option. You can also explore how Security Bank stacks up against other lenders in our Landbank vs Security Bank comparison.
Loan Purpose Coverage
Are you buying a ready-for-occupancy unit, refinancing an existing loan, or looking to tap your home's equity? Here's what each bank supports:
| Loan Purpose | Bank of Commerce | Security Bank |
|---|---|---|
| Refinancing | ✓ | ✓ |
| Ready For Occupancy (RFO) | ✓ | ✓ |
| Pre-Selling | Limited | ✓ |
| Home Equity / Cash Out | Limited | ✓ |
| New Construction | ✓ | ✓ |
| Renovation | Limited | ✓ |
| Foreclosed Property | Not specified | ✓ |
| Reselling | ✓ | ✓ |
Security Bank covers a wider range of loan purposes, making it a more versatile choice whether you're a first-time buyer, an investor, or a homeowner looking to refinance. If you're comparing Security Bank with other government-backed options, our Philippine Veterans Bank vs Security Bank page is also worth a read.
Why Refinancing to a Lower Rate Matters
Many Filipino homeowners are still paying rates of 8% to 10% or higher on home loans taken out 3 to 5 years ago. If your current rate is above 7%, you may be eligible to refinance to a significantly lower rate through Security Bank — currently offering 5-year fixed rates at just 6.75% p.a. through Nook.
Here's how refinancing a ₱5,000,000 loan from 9% down to 6.75% could impact your finances over a 20-year term:
| Metric | At 9.00% | Refinanced at 6.75% |
|---|---|---|
| Monthly Payment | 44,986 | 37,882 |
| Monthly Savings | — | 7,104 |
| Total Interest Over 20 Years | 5,796,640 | 4,091,680 |
| Total Interest Savings | — | 1,704,960 |
Refinancing through Nook is completely free for borrowers. Nook is compensated by the bank, not by you, so there's no reason not to explore your options.
The Nook Advantage: Apply to Security Bank for Free
Nook is the Philippines' first digital mortgage broker, helping homeowners compare and apply for refinancing across multiple partner banks — including Security Bank — at zero cost. Here's what you get when you apply through Nook:
- Free broker service: Nook is paid by the bank, never by you
- Faster processing: Security Bank approvals typically take just 23 days through Nook
- Expert guidance: Nook's mortgage advisors help you prepare documents and navigate the process
- No commitment required: Get a comparison and recommendation before you decide
- Access to the best available rates: Currently as low as 5.99% p.a. for qualifying borrowers
Whether you're refinancing from Bank of Commerce or any other lender, Nook can help you find the best rate available in the market today.
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Compare My Options →Frequently Asked Questions
Is Bank of Commerce a good option for home loans?
Bank of Commerce does offer home loans and has been serving Filipino borrowers for many years. However, their published rates tend to be higher than those available through Nook partner banks like Security Bank. If getting the lowest possible rate is your priority — especially for refinancing — it's worth comparing Bank of Commerce's current offer against Security Bank's 6.75% 5-year fixed rate before making a decision.
What is Security Bank's current home loan interest rate?
Through Nook, Security Bank currently offers a 1-year fixed rate of 6.99% p.a. and a 5-year fixed rate of 6.75% p.a. Their home equity loan rate is 7.50% p.a. These rates are subject to change, so we recommend verifying current rates when you apply. Qualifying borrowers may access rates as low as 5.99% p.a.
Can I refinance my Bank of Commerce home loan to Security Bank?
Yes, you can refinance an existing Bank of Commerce home loan to Security Bank if you meet Security Bank's eligibility requirements. This typically includes a minimum monthly income of 50,000, an acceptable debt-to-income ratio below 40%, and a property with a clear title. Through Nook, the refinancing process is guided and completely free for borrowers.
How long does Security Bank take to approve a home loan?
Security Bank's typical approval timeline through Nook is approximately 23 days from submission of complete documents. This is faster than the industry average of 30 to 45 days at many traditional banks, including Bank of Commerce. Having complete and accurate documentation ready upfront is the best way to avoid delays.
Does Security Bank accept OFW and freelancer applications?
Yes. Security Bank accepts a wide range of borrower types including OFWs, seafarers, freelancers, BPO workers, self-employed individuals, and licensed professionals. This makes it one of the more accessible bank options for borrowers outside of traditional salaried employment.
What is the minimum income requirement for a Security Bank home loan?
Security Bank requires a minimum monthly income of 50,000. This applies across most employment types. If your income falls below this threshold, you may want to explore other options such as Pag-IBIG (HDMF) or other banks with lower income floors. Nook can help you identify the right lender for your income level.
How much can I save by switching from a high-rate home loan to Security Bank?
The savings depend on your loan balance, current rate, and remaining term. As a general example, refinancing a 3,000,000 loan from 9% to 6.75% over 20 years could save you over 1,000,000 pesos in total interest. For a 5,000,000 loan, the savings could exceed 1,700,000 pesos. Nook offers a free refinance calculator and consultation to give you a personalized estimate.
Is Nook's service really free for borrowers?
Yes, Nook's mortgage brokering service is 100% free for borrowers. Nook earns a referral fee from the bank when a loan is successfully processed. This means you get expert guidance, document support, and access to competitive rates from multiple partner banks — all at no cost to you.