Bank of Commerce vs Tonik: Home Loan Overview
Choosing between Bank of Commerce and Tonik for a home loan refinance is a choice between two very different lending philosophies. Bank of Commerce is a traditional Philippine bank with physical branches, a long track record in retail banking, and a conventional home loan product aimed at salaried employees and self-employed borrowers. Tonik, on the other hand, entered the market as the country's first neobank — fully digital, app-based, and designed to appeal to tech-savvy borrowers who prefer doing everything on their phone.
Neither lender dominates the home loan space the way BDO or BPI does, which means both are often overlooked — and sometimes offer rates that surprise borrowers in either direction. Here's what you need to know before choosing one over the other, or before deciding to look elsewhere entirely.
Interest Rate Comparison
Interest rates are the single biggest driver of your monthly payment and total loan cost, so this is where the comparison matters most.
- Bank of Commerce typically offers fixed interest rates in the range of 7.5% to 9.5% p.a. for the initial fixed period, depending on your loan amount, term, and credit profile. Like most traditional Philippine banks, rates are re-priced after the fixed period ends — usually after 1, 2, 3, or 5 years.
- Tonik has marketed competitive digital-first rates, but their home loan product has had limited availability and variable rollout. Rates quoted by Tonik have generally ranged from 7% to 9% p.a., though eligibility requirements and documentation processes have been noted as more stringent than expected for a digital lender.
To put this in real peso terms: on a 3,000,000 loan over 20 years, the difference between a 7.5% and an 8.5% rate is approximately 1,750 per month — that's over 420,000 in additional interest over the life of the loan. The difference between either bank's rate and Nook's best available rate of 5.99% p.a. is even more dramatic.
| Loan Amount | At 8.0% (typical range) | At 5.99% (via Nook) | Monthly Savings |
|---|---|---|---|
| 2,000,000 | 16,729 | 14,322 | 2,407 |
| 3,500,000 | 29,276 | 25,064 | 4,212 |
| 5,000,000 | 41,822 | 35,806 | 6,016 |
Figures are estimates based on a 20-year loan term for illustration purposes only. Actual rates depend on lender assessment.
Loan Features & Eligibility
Beyond the headline rate, the structure of each bank's home loan product matters — especially for refinancing.
Bank of Commerce
- Loan amounts: Typically from 500,000 upward, with higher minimums for refinancing
- Loan terms: Up to 20 years for refinancing
- Fixed rate periods: 1, 2, 3, or 5 years, after which the rate re-prices to prevailing market rates
- Eligible borrowers: Filipino citizens, salaried employees, and self-employed individuals with at least 2 years of stable income history
- Collateral: Residential property (house and lot, condominium unit, townhouse)
- Processing: Branch-based with in-person document submission required
Tonik
- Loan amounts: Home loan products have been offered with varying minimums; digital application process
- Loan terms: Varies; Tonik has positioned shorter-to-medium terms as part of its product set
- Fixed rate periods: Limited fixed-rate options compared to traditional banks
- Eligible borrowers: Filipino citizens with verifiable income; Tonik's digital nature means income verification relies on bank statements and alternative data
- Processing: App and online-based, though property appraisal still requires physical inspection
If you're comparing these two banks against a wider field, you may also want to read our Bank of Commerce vs CIMB home loan comparison and the Asia United Bank vs Tonik home loan comparison for additional context on how these lenders stack up in the broader market.
Fees & Charges
Both banks charge processing and administrative fees that add to the real cost of your home loan. Always factor these into your comparison — a lower rate with higher fees can end up costing more than a slightly higher rate with minimal fees.
| Fee Type | Bank of Commerce | Tonik |
|---|---|---|
| Processing Fee | Typically 5,000 – 10,000 or ~0.5% of loan amount | Varies; digital model aims to reduce admin costs |
| Appraisal Fee | 3,000 – 6,000 depending on property location | Required; third-party appraisal applies |
| Documentary Stamp Tax | Borrower's account (standard) | Borrower's account (standard) |
| Registration Fees | Borrower's account | Borrower's account |
| Early Repayment Penalty | May apply within the fixed-rate period | Terms vary; check loan agreement |
One of the often-overlooked benefits of refinancing through Nook is that Nook's service is completely free to the borrower. Nook does not charge a brokerage or advisory fee — you get access to multiple lender offers at no cost, and Nook handles the comparison and application coordination for you.
Application Process
Bank of Commerce
Applying for a home loan refinance with Bank of Commerce follows the traditional bank process: visit a branch, submit physical documents, wait for credit evaluation, property appraisal, and loan approval. The process typically takes 2 to 6 weeks depending on document completeness and branch workload. This is familiar to most Filipino borrowers but can feel slow and cumbersome compared to digital alternatives.
Tonik
Tonik's digital-first promise means you initiate the application via the Tonik app. Document uploads are done digitally, and communication is app-based. However, the property appraisal step still requires a physical site visit, which means the process isn't entirely remote. Tonik's credit decisioning may be faster for straightforward applications, but complex refinancing cases — especially those involving older properties or rural locations — may face longer timelines.
Refinancing Through Nook
Nook submits your application to multiple lenders simultaneously, so you receive competing offers without having to approach each bank individually. This saves weeks of legwork and ensures you're not leaving savings on the table by only talking to one lender.
Who Should Consider Each Option?
Consider Bank of Commerce if:
- You prefer face-to-face banking and branch support during the loan process
- You already have an existing relationship or account with Bank of Commerce
- Your property is located in an area with limited lender coverage from digital banks
Consider Tonik if:
- You're comfortable with a fully digital application process
- You have a strong digital income trail (payroll via bank, freelance income documented online)
- You want a modern borrower experience and app-based loan management
Consider Nook if:
- You want to see all available rates side by side — including from both of these banks and others
- You want someone to handle the comparison and paperwork coordination for free
- You're serious about getting the lowest possible refinance rate, not just a convenient one
Not sure which bank suits you?
Nook compares offers from 15+ banks for free. See your personalised options.
Compare My Options →Frequently Asked Questions
Which is better for home loan refinancing: Bank of Commerce or Tonik?
It depends on your priorities. Bank of Commerce offers a traditional branch-based experience with established home loan products, while Tonik provides a more digital-first approach. However, neither bank consistently offers the lowest refinance rates in the Philippines. Through Nook, you can compare both alongside other lenders and access rates from as low as 5.99% p.a. — which may be significantly better than what either bank quotes you directly.
What interest rates does Bank of Commerce offer for home loans?
Bank of Commerce typically offers fixed interest rates ranging from approximately 7.5% to 9.5% p.a. for an initial fixed period of 1 to 5 years. After the fixed period, the rate re-prices to prevailing market conditions. Actual rates depend on your loan amount, term, and credit profile. Always request a formal quote and compare it against other lenders before committing.
Does Tonik offer competitive home loan rates in the Philippines?
Tonik has positioned itself as a competitive digital lender, with home loan rates generally in the 7% to 9% p.a. range. While its digital application process can be convenient, its home loan product has had limited rollout and availability compared to established Philippine banks. Borrowers should verify current rates directly with Tonik and compare them against the broader market through a service like Nook.
Can I refinance my existing home loan with Bank of Commerce or Tonik?
Yes, both lenders offer refinancing options for existing home loans. Bank of Commerce accepts refinancing applications through its branches, while Tonik handles applications digitally. In both cases, your property will need to be appraised, and you'll need to meet each bank's credit and income requirements. If you want to compare refinancing offers from both banks and others simultaneously, Nook can handle this at no cost to you.
How much can I save by refinancing to a lower rate?
The savings can be substantial. For example, on a 3,500,000 loan over 20 years, refinancing from 8.0% to 5.99% p.a. could reduce your monthly payment by approximately 4,212 — that's over 1,010,000 in total savings over the life of the loan. Even a 1% rate reduction on a mid-sized loan generates hundreds of thousands of pesos in savings. Use Nook's free comparison tool to calculate your personal savings estimate.
Is Nook's refinancing service really free?
Yes. Nook charges borrowers absolutely nothing. Nook is compensated by lenders when a loan is successfully placed, which means you get expert guidance, lender comparison, and application support at zero cost. There are no hidden brokerage fees or advisory charges passed on to the borrower.
What documents do I need to refinance my home loan?
Standard documents for home loan refinancing in the Philippines include: valid government-issued IDs, proof of income (payslips, ITR, or audited financial statements for self-employed borrowers), the original Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT), current loan statement of account from your existing lender, and a copy of your property's tax declaration. Specific requirements may vary by lender. Nook can guide you through document preparation for whichever lender you choose.