Bank of Commerce vs UnionBank: Home Loan Overview
When comparing home loan options in the Philippines, Bank of Commerce and UnionBank represent two distinct experiences. Bank of Commerce is a mid-sized commercial bank with a traditional branch-based approach, while UnionBank is one of the country's most digitally advanced banks, known for fast processing and transparent pricing. For homeowners looking to refinance or take out a new home loan, understanding the differences between these two lenders can mean a significant difference in monthly payments and long-term interest costs.
Through Nook, Filipino borrowers can access UnionBank's home loan products at no cost — Nook's service is 100% free to the borrower. This page compares both banks across the factors that matter most: interest rates, eligibility, loan purposes, and overall value.
Interest Rates Compared
| Feature | Bank of Commerce | UnionBank |
|---|---|---|
| 1-Year Fixed Rate | Not publicly listed; inquire at branch | 7.00% p.a. |
| Home Equity Rate | Not publicly listed; inquire at branch | 7.00% p.a. |
| Rate Transparency | Rates disclosed upon application | Publicly available and consistent |
| Best Refinance Rate via Nook | Not a Nook partner | 7.00% p.a. |
Bank of Commerce does not publicly publish its home loan interest rates, which makes comparison shopping difficult for borrowers. You typically need to visit a branch or submit an inquiry before receiving a rate quote. UnionBank, by contrast, offers a clearly stated 7.00% per annum fixed rate for 1-year terms and home equity loans — giving borrowers confidence and predictability when budgeting for a refinance.
Important: Interest rates are subject to change. Always verify current rates directly with the bank or through Nook before making a final decision.
Monthly Payment Comparison (Illustrative)
To understand the real-world impact of interest rate differences, here's a side-by-side monthly payment estimate for a typical refinancing scenario. Note that Bank of Commerce rates are estimated based on market range since they are not publicly disclosed.
| Scenario | Loan Amount | Term | Bank of Commerce (Est. 8.50%) | UnionBank (7.00%) | Monthly Savings |
|---|---|---|---|---|---|
| Mid-range condo | 3,000,000 | 20 years | ~26,035 | ~23,259 | ~2,776 |
| House and lot | 5,000,000 | 20 years | ~43,392 | ~38,765 | ~4,627 |
| Townhouse refinance | 2,000,000 | 15 years | ~19,718 | ~17,978 | ~1,740 |
These figures are for illustration only. Actual Bank of Commerce rates may differ. The key takeaway: at UnionBank's published 7.00% rate, most borrowers can expect meaningfully lower monthly payments compared to Philippine market averages of 7%–10%, and especially compared to banks that don't disclose their rates upfront.
Eligibility Requirements
| Requirement | Bank of Commerce | UnionBank |
|---|---|---|
| Minimum Monthly Income | Varies; confirm at branch | 30,000 |
| Maximum Debt-to-Income Ratio | Not publicly specified | 50% |
| Employment Types Accepted | Primarily locally employed | Private, Government, BPO, OFW/Seafarer, Self-Employed, Professional |
| Citizenship Requirement | Filipino citizens | Filipino citizens |
UnionBank's eligibility framework is notably inclusive. Whether you're an OFW sending remittances home, a BPO worker, a self-employed entrepreneur, or a government employee, UnionBank has a defined pathway for your application. This breadth is a major advantage for the diverse Filipino workforce. If you're comparing how UnionBank stacks up against another popular lender for OFWs, see our Pag-IBIG vs UnionBank home loan comparison for a detailed breakdown.
Bank of Commerce's eligibility criteria are less transparent publicly, which can create uncertainty for borrowers who want to qualify themselves before investing time in an application.
Supported Loan Purposes
| Loan Purpose | Bank of Commerce | UnionBank |
|---|---|---|
| Purchase of Ready-for-Occupancy (RFO) Property | Yes | Yes |
| Pre-Selling Property | Limited; confirm at branch | Yes |
| Refinancing / Loan Takeout | Yes | Yes |
| Home Construction | Yes | Yes |
| Renovation | Limited; confirm at branch | Yes |
| Home Equity / Equity Takeout | Limited; confirm at branch | Yes |
| Foreclosed Properties | Yes (own REO inventory) | Yes |
| Reselling | Yes | Yes |
UnionBank supports a full spectrum of loan purposes, including renovation, home equity, and pre-selling units — which is particularly useful for buyers entering the property market early or homeowners wanting to unlock equity without selling. Bank of Commerce is more limited in some categories, and borrowers may need to confirm availability on a case-by-case basis.
Application Process and Digital Experience
UnionBank is widely recognized as one of the Philippines' leading digital banks. Their home loan application process is streamlined, with online document submission and digital tracking of your application status. Processing times are generally faster than traditional banks, and their customer service teams are responsive through multiple channels.
Bank of Commerce operates through a more traditional branch-centric model. While their loan officers can be helpful, the process typically requires more in-person visits and manual document handling, which can be time-consuming — especially for busy professionals or OFW borrowers who may not be physically present in the Philippines.
When you apply through Nook, UnionBank's digital-friendly approach is amplified further. Nook's platform helps you prepare documents, compare offers side by side, and submit your application — all at zero cost to you as the borrower.
Fees and Charges
| Fee Type | Bank of Commerce | UnionBank |
|---|---|---|
| Processing Fee | Varies; confirm at branch | Confirm with Nook or UnionBank |
| Appraisal Fee | Third-party; borrower shoulders | Third-party; borrower shoulders |
| Mortgage Registration / Notarial Fees | Applicable | Applicable |
| Early Termination Fee | Confirm at branch | Confirm with Nook or UnionBank |
| Broker / Referral Fee | May apply through third parties | FREE through Nook |
One distinct advantage of applying through Nook is that there is absolutely no broker fee charged to the borrower. Nook is compensated by the bank, not by you. This means you get professional guidance, document preparation support, and access to UnionBank's competitive 7.00% rate — all without paying a single peso in broker fees.
Which Bank is Better for Refinancing?
If you're currently paying 8%, 9%, or even 10% on your existing home loan, refinancing to UnionBank's 7.00% rate through Nook could result in substantial monthly savings. For a 5,000,000 loan, the difference between a 9% rate and UnionBank's 7.00% rate over a 20-year term is approximately 6,500 per month — or over 78,000 per year.
Bank of Commerce can be a consideration if you already have a strong banking relationship there or if you're purchasing a foreclosed property from their REO inventory at a favorable price. However, for transparent pricing, digital convenience, and broad eligibility, UnionBank is the stronger option for most refinancing borrowers.
For a broader view of how UnionBank compares to other lenders in the market, you may also find our First Metro Investment vs UnionBank home loan comparison useful.
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Compare My Options →Frequently Asked Questions
What is UnionBank's current home loan interest rate?
UnionBank currently offers a 1-year fixed rate of 7.00% per annum, which also applies to home equity loans. This rate is available through Nook at no cost to the borrower. Note that rates are subject to change, so always confirm the latest rate before applying.
Does Bank of Commerce publish its home loan interest rates?
Bank of Commerce does not publicly list its home loan interest rates. Borrowers typically need to visit a branch or submit an inquiry to receive a rate quote. This lack of transparency makes comparison shopping more difficult compared to lenders like UnionBank, which publishes its rates clearly.
Can OFWs apply for a UnionBank home loan?
Yes. UnionBank explicitly accepts OFW and seafarer applicants, making it one of the more accessible lenders for Filipinos working abroad who want to invest in property back home. The minimum monthly income requirement is 30,000, and you can apply through Nook entirely online.
How much can I save by refinancing to UnionBank's 7.00% rate?
The savings depend on your current rate and loan balance. As an example, refinancing a 3,000,000 loan from 9.00% to 7.00% on a 20-year term could reduce your monthly payment by approximately 3,500 to 4,000 — saving you over 40,000 per year. Use Nook's free refinance calculator for a personalized estimate.
Is Nook's service really free for borrowers?
Yes, completely free. Nook is a digital mortgage broker that is compensated by the bank, not by you. You get access to competitive rates, expert guidance, and full application support at zero cost.
What loan purposes does UnionBank support?
UnionBank supports a wide range of loan purposes including purchase of ready-for-occupancy (RFO) and pre-selling properties, home construction, renovation, reselling, home equity takeout, and foreclosed properties. This makes it a flexible choice for both first-time buyers and existing homeowners refinancing.
What is the minimum income required to qualify for a UnionBank home loan?
UnionBank requires a minimum monthly income of 30,000 and has a maximum debt-to-income (DTI) ratio of 50%. This means your total monthly debt obligations — including your new home loan — should not exceed 50% of your gross monthly income.
How does Bank of Commerce compare to UnionBank for buying a foreclosed property?
Both banks support foreclosed property purchases. Bank of Commerce has its own real estate owned (REO) inventory, which can sometimes be purchased at a discount. However, if you're financing the purchase through a loan, UnionBank's transparent 7.00% rate and streamlined process through Nook may offer a better overall deal than Bank of Commerce's undisclosed rates.