BDO vs UnionBank

BDO vs UnionBank Home Loan: At a Glance

Choosing between BDO Unibank and UnionBank for your home loan or refinancing comes down to two core trade-offs: rate vs. accessibility. BDO leads with a 1-year fixed rate of 6.00% p.a., while UnionBank sits at 7.00% p.a. — a full percentage point higher. On a 3,000,000 loan over 20 years, that gap translates to roughly 1,800 in additional monthly payments and over 430,000 in extra interest paid over the life of the loan. But UnionBank compensates with more flexible qualification criteria, making it the realistic choice for borrowers with moderate incomes or higher existing debt obligations.

Both banks are Nook partner banks, which means you can compare real offers from both — and apply to either or both — completely free through Nook.

Note: Interest rates are subject to change. Always verify current rates with the bank or through your Nook advisor before making a decision.

Interest Rate Comparison: How Much Does 1% Actually Cost You?

A 1 percentage point difference in interest rate might sound small, but over a typical 15–20 year loan term, the compounding effect is substantial. Here's a side-by-side look at estimated monthly amortizations and total interest paid at both banks' current 1-year fixed rates, across common loan amounts. (Figures are illustrative estimates based on a 20-year term and are not guaranteed.)

For most borrowers, the difference is not trivial. A homeowner refinancing a 3,000,000 loan could save over 400,000 in interest by choosing BDO — provided they meet the qualification requirements. If you're currently paying 8% or higher at your existing bank, see how BDO and UnionBank's refinancing rates compare to what you're paying now and estimate your potential savings.

Eligibility & Qualification Requirements

Understanding where you stand on income and debt obligations is the single most important factor in choosing between these two banks.

Income Requirements

BDO requires a minimum monthly income of 50,000. This covers most mid-to-senior professionals, dual-income couples, OFWs, and established self-employed individuals. For borrowers who fall below this threshold, BDO may still be accessible if a co-borrower is added to the application.

UnionBank sets its minimum monthly income at a more accessible 30,000, which opens up eligibility to a broader range of applicants — including younger professionals, single-income households, and lower-tier OFWs. This is a meaningful advantage for first-time refinancers or those in earlier career stages.

Debt-to-Income (DTI) Ratio

BDO caps DTI at 40%, meaning your total monthly debt obligations (including the new home loan payment) cannot exceed 40% of your gross monthly income. For a borrower earning 80,000/month, this means maximum total monthly debt of 32,000.

UnionBank allows a higher DTI of up to 50%, giving more flexibility to borrowers who carry car loans, personal loans, or credit card obligations alongside their home loan. This is a critical advantage for borrowers who are financially capable but appear over-leveraged on paper.

Employment Types Accepted

Both banks accept a broad range of employment types: private employees, government workers, BPO employees, OFWs and seafarers, self-employed individuals, and professionals. Neither bank has a significant edge here — both serve the full spectrum of Filipino working profiles.

Loan Purposes

BDO supports: Home Equity, Foreclosed Properties, New Construction, Pre-Selling, Ready For Occupancy (RFO), Renovation, Reselling, and Refinancing.

UnionBank supports: Foreclosed Properties, Home Equity, New Construction, Pre-Selling, Ready For Occupancy (RFO), Renovation, and Reselling.

One notable distinction: BDO explicitly lists Refinancing as a supported loan purpose, making it a particularly strong choice if your primary goal is to refinance an existing home loan and lock in a lower rate. UnionBank handles refinancing as well, but BDO's explicit inclusion signals a more developed refinancing product.

Approval Speed & Application Process

BDO has a typical approval timeline of approximately 30 days from complete document submission. For a major Philippine bank, this is a competitive turnaround — especially for refinancing applications where title verification and appraisal are involved.

UnionBank does not publish a standardized approval timeline in the same way, though processing times are generally in line with industry norms. UnionBank has invested in digital banking infrastructure that may support faster document submission and tracking.

When applying through Nook, both processes are streamlined — your Nook advisor handles document preparation, bank coordination, and follow-ups on your behalf at no cost to you. This typically reduces back-and-forth delays significantly compared to applying directly.

Who Should Choose BDO?

• You earn at least 50,000/month (individual or combined with co-borrower)
• Your total monthly debt obligations stay within 40% of your gross income
• Your primary goal is refinancing to get the lowest possible rate
• You want a fast, predictable approval timeline (~30 days)
• You're looking at larger loan amounts where the rate difference compounds significantly
• You want the security of one of the Philippines' largest and most established banks

Who Should Choose UnionBank?

• Your monthly income is between 30,000 and 49,999 — below BDO's minimum
• Your DTI exceeds 40% due to other existing loans or obligations
• You're comfortable with a slightly higher rate in exchange for easier qualification
• You prefer a bank with strong digital banking capabilities
• You're a younger borrower or single-income household who doesn't yet meet BDO's income threshold

For borrowers who are on the fence, comparing BDO, UnionBank, and Security Bank side by side can help you see how a third option stacks up before making a final call.

Why Apply Through Nook Instead of Going Directly?

Nook is the Philippines' first digital mortgage broker — and our service is 100% free to borrowers. When you apply through Nook, you get:

• Access to multiple banks at once — including BDO and UnionBank — so you can compare real offers side by side
• Expert guidance on which bank is more likely to approve your profile before you invest time in a full application
• Document preparation support to reduce back-and-forth with the bank
• No broker fee — banks pay Nook, not you

The best refinance rate currently available through Nook is 5.99% p.a. — even lower than BDO's already-competitive 6.00%. Getting a free assessment takes minutes and could save you hundreds of thousands of pesos over your loan term.