The Loan They Thought Was a Good Deal
In 2019, Jomar and Kristine Dela Cruz signed the paperwork on their dream home — a 3-bedroom house in a subdivision in Dasmariñas, Cavite. It was a modest but well-built property, and after years of renting in Bacoor, it felt like a milestone they had earned.
They financed it through BDO, borrowing 4,500,000 pesos over 20 years. At the time, their interest rate was fixed at 7.5% per annum for the first year — and after that, it repriced to a floating rate that eventually settled at 9.25%. Their monthly amortization climbed to approximately 40,700 pesos.
"It was manageable," Kristine recalled. "Jomar had a stable income, I was doing freelance work from home. We made it work. But every month, I kept thinking — there has to be a better rate out there."
Four Years of Wondering
For years, the couple talked about refinancing — but they kept putting it off. The process seemed complicated. They assumed there would be expensive fees. And frankly, they didn't know where to start.
"I looked online a few times," Jomar said. "I'd find bank websites with rates, but they were vague. Some said 'as low as 5%' but when you called, the actual offer was completely different. I gave up after a while."
By early 2024, their outstanding loan balance had come down to roughly 3,900,000 pesos, still with about 15 years remaining. At 9.25%, their interest burden was enormous — they were paying close to 30,000 pesos a month in pure interest alone, with only a fraction going toward the principal.
Then a colleague of Kristine's mentioned she had refinanced her home loan through a digital mortgage broker called Nook — and hadn't paid a single peso in broker fees.
Discovering Nook
Kristine visited nook.com.ph that same evening. What surprised her first was how transparent everything was. The site showed real rates from multiple banks side by side — no guesswork, no need to call anyone to get a number.
"I put in our loan balance, our remaining term, and our current rate," she said. "The calculator immediately showed me what refinancing could do for us. I almost didn't believe the difference."
She submitted an inquiry and within one business day, a Nook mortgage advisor reached out. The advisor walked her through the options based on their financial profile — Jomar's income as a logistics manager, Kristine's freelance income, and their credit history.
The advisor was straightforward: "Your profile is strong. We can likely get you a significantly lower rate. Let me show you what BDO is currently offering as a partner bank, and we'll compare it with other options."
The Numbers That Changed Everything
Nook presented the couple with a detailed comparison. Their existing BDO loan had repriced to 9.25% p.a. On a remaining balance of 3,900,000 pesos over 15 years, their monthly amortization was approximately 40,700 pesos.
Through Nook's partner banks, they were presented with competitive refinancing options. BDO, as a Nook partner, was offering a 1-year fixed rate of 6.00% p.a. — a sharp drop from their current rate. On the same remaining balance and term, this would bring their monthly payment down to approximately 32,900 pesos.
That's a difference of 7,800 pesos per month — and when factoring in their full 15-year remaining term, it represented potential total interest savings of over 1,400,000 pesos.
"We just sat there staring at the screen," Jomar said. "We had been overpaying by almost eight thousand pesos a month for years. That's money we could have been putting into our kids' education fund."
Nook's advisor also explained BDO's profile requirements clearly: a minimum monthly income of 50,000 pesos, typical approval within 30 days, and a maximum debt-to-income ratio of 40%. Jomar's income comfortably met these thresholds.
The Application: Simpler Than They Expected
With Nook handling the coordination, the application process was far less painful than the couple had feared. Their Nook advisor provided a clear checklist of required documents — income records, the original loan documents from BDO, the property title, tax declarations, and government-issued IDs.
"Our advisor told us exactly what to prepare, in what format, and where to send it," Kristine said. "We weren't left guessing. Every time we had a question — even late at night — we got a fast response."
Nook submitted the application on their behalf and kept them updated throughout the process. The property appraisal was arranged by the bank. Within 38 days of submitting their complete documents, they received their Letter of Approval.
Total cost to the couple for Nook's service: zero pesos. Nook is compensated by the bank, not the borrower.
Life After Refinancing
The Dela Cruz family completed their refinancing in mid-2024. Their new monthly amortization came in at 32,900 pesos — a drop of nearly 8,000 pesos from what they had been paying.
"The first month we saw the new debit amount, Kristine literally screamed," Jomar laughed. "It was such a relief. We'd been carrying that higher payment for five years without realizing we had an option."
The couple now puts the monthly savings into a time deposit for their two children's college education. "It's not a huge amount in the grand scheme of things," Kristine said. "But 8,000 pesos a month is 96,000 pesos a year. That's a real contribution to our kids' future."
Their one piece of advice for other homeowners? Don't wait. "We waited four years," Jomar said. "That was a mistake. Even if your loan feels manageable, it's worth spending 10 minutes to check if you're overpaying. We were — and we had no idea."
Key Takeaways From the Dela Cruz Story
- Original rate: 9.25% p.a. (floating, after repricing)
- New rate: 6.00% p.a. (1-year fixed, BDO via Nook)
- Outstanding balance at refinancing: 3,900,000 pesos
- Remaining term: 15 years
- Monthly savings: approximately 7,800–8,000 pesos
- Estimated total interest savings: over 1,400,000 pesos
- Time to approval: 38 days
- Cost of Nook's service: Free
Note: The rates and terms described in this story reflect the situation at the time of the Dela Cruz family's refinancing. Interest rates are subject to change. Borrowers should verify current rates directly with the bank or through a Nook advisor before making any financial decisions.