⚖️ Bank Comparison

BDO vs UnionBank

By the Nook Editorial Team · Reviewed to Nook's editorial standards

BDO offers slightly lower rates at 6.00% compared to UnionBank's 7.00%, but UnionBank has more flexible income requirements starting at just ₱30,000 monthly.

Our Verdict

BDO Wins on Rates, UnionBank Wins on Accessibility

BDO takes the lead with a 1% lower interest rate at 6.00% versus UnionBank's 7.00%, potentially saving borrowers thousands monthly. However, UnionBank offers greater accessibility with lower income requirements (₱30,000 vs ₱50,000) and higher debt-to-income tolerance (50% vs 40%), making it ideal for middle-income borrowers who may not qualify elsewhere.

Interest Rates Comparison

BDO Unibank

6.00%

1-Year Fixed & Home Equity

UnionBank

7.00%

1-Year Fixed & Home Equity

Rate Advantage: BDO offers a full 1% lower interest rate, which translates to significant monthly savings for borrowers.

Monthly Payment Comparison

Here's how much you'd pay monthly on a ₱3,000,000 loan over 20 years:

BankInterest RateMonthly PaymentTotal Interest
BDO6.00%21,4922,158,030
UnionBank7.00%23,2652,583,500
Monthly Savings with BDO1,773425,470

Income and Qualification Requirements

BDO Requirements

  • Minimum Monthly Income: ₱50,000
  • Maximum DTI: 40%
  • Typical Approval Time: 30 days
  • Employment Types: Private, Government, BPO, OFW/Seafarer, Self-Employed, Professional

UnionBank Requirements

  • Minimum Monthly Income: ₱30,000
  • Maximum DTI: 50%
  • Employment Types: Private, Government, BPO, OFW/Seafarer, Self-Employed, Professional

Accessibility Winner: UnionBank is more accessible with 40% lower income requirements and allows higher debt ratios, making it easier for middle-income earners to qualify.

Loan Purposes and Flexibility

Both banks support comprehensive loan purposes:

Both BDO and UnionBank are Nook partner banks, meaning you get free broker services, expert guidance, and streamlined application processes when refinancing through our platform.

Which Bank Should You Choose?

Choose BDO if:

  • You earn ₱50,000+ monthly
  • Your DTI is below 40%
  • Minimizing interest costs is your priority
  • You want to save ₱1,773 monthly (₱425,470 over 20 years)

Choose UnionBank if:

  • Your monthly income is ₱30,000-₱49,999
  • Your DTI is between 40-50%
  • You need more flexible qualification standards
  • Getting approved is more important than the lowest rate

Not sure which bank suits you?

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Frequently Asked Questions

What's the interest rate difference between BDO and UnionBank home loans?

BDO offers 6.00% for both 1-year fixed and home equity loans, while UnionBank offers 7.00% for the same loan types. This 1% difference can save you ₱1,773 monthly on a ₱3,000,000 loan.

Which bank has lower income requirements for home loan refinancing?

UnionBank has significantly lower income requirements at ₱30,000 monthly compared to BDO's ₱50,000 minimum. UnionBank also allows higher debt-to-income ratios up to 50% versus BDO's 40% limit.

Can I refinance from either BDO or UnionBank through Nook?

Yes, both BDO and UnionBank are Nook partner banks. You can refinance your existing loan from either bank (or any other lender) to get better rates and terms. Nook's service is completely free to borrowers.

How much can I save by switching from UnionBank to BDO rates?

On a ₱3,000,000 loan over 20 years, switching from UnionBank's 7.00% to BDO's 6.00% rate saves ₱1,773 monthly and ₱425,470 in total interest payments.

Which bank processes home loan applications faster?

BDO typically processes applications within 30 days. UnionBank's processing times vary, but both banks accept the same employment types including private employees, government workers, BPO staff, OFWs, self-employed individuals, and professionals.

Do both banks offer the same types of home loans?

Yes, both BDO and UnionBank offer comprehensive home loan products including home equity loans, foreclosed property financing, new construction loans, pre-selling and RFO property loans, renovation financing, and reselling property loans.