FIXED VS VARIABLE RATE GUIDE

Stop Guessing, Start Saving More
Overpaying Your Bank?

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

Choosing between a fixed or variable rate when refinancing could mean the difference of hundreds of thousands of pesos over your loan term. Nook helps you compare both options — for free.

POTENTIAL MONTHLY SAVINGS

8.50%
Your likely rate
5.99%
Best available
₱3,969
estimated monthly savings on a ₱3,000,000 loan

No commitment. No credit check. Just your numbers.

2,400+
Homeowners helped
₱9.2K
Avg. monthly savings
15
Partner banks
100%
Free service

Why this matters

Your bank is counting on you not checking.

When refinancing your home loan in the Philippines, one of the biggest decisions you'll face is whether to lock in a fixed interest rate or go with a variable (floating) rate. A fixed rate gives you predictable monthly payments — your rate stays the same for a set period, typically 1 to 5 years, no matter what happens to market rates. A variable rate, on the other hand, moves with the bank's benchmark, which means your payments can go down when rates fall — but also up when they rise. Understanding which structure suits your financial situation is just as important as finding the lowest headline rate. You can use Nook's home loan refinance calculator to model both scenarios side by side before making a decision.

For most Filipino homeowners currently paying between 7% and 10% on an older fixed-rate package, refinancing to today's competitive rates — as low as 5.99% p.a. through Nook — can deliver significant savings regardless of which rate type you choose. Fixed rates tend to suit borrowers who value certainty and are planning long-term around a set budget. Variable rates may benefit those who expect rates to continue falling or who plan to sell or repay their loan within a few years. It's also worth factoring in where Philippine home loan interest rates are headed, since timing your refinance around the rate cycle can amplify your savings.

Nook is the Philippines' first digital mortgage broker, and our service is completely free to borrowers. We compare offers from BDO, BPI, Metrobank, Security Bank, RCBC, UnionBank, Chinabank, PNB, EastWest Bank, and more — covering both fixed and variable rate products — so you get the best available deal without doing the legwork yourself. Whether you're leaning toward the stability of a fixed rate or the potential upside of a variable rate, Nook will match you with the right offer for your loan amount, remaining term, and financial goals.

The monthly numbers on a ₱3,000,000 balance

Current payment at 8.50% ₱26,035
Refinanced payment at 5.99% ₱22,066
Monthly savings ₱3,969
Annual savings ₱47,628
Total savings over remaining term ₱714,420

Three steps. No paperwork until you decide.

1

Check your rate (60 seconds)

Enter your loan details into our calculator. Instantly see what banks are offering right now and how much you'd save each month. No personal information required.

2

Talk to a Nook consultant (15 minutes)

If the numbers make sense, book a free call. Your consultant compares offers from 15+ banks — something that would take you weeks to do on your own — and recommends the best option for your situation.

3

Nook handles everything

We manage the entire application, documentation, and bank coordination. You sign where we tell you. Your new lower payment starts next month. Nook's service is completely free — we're paid by the receiving bank.

Common questions

What Filipino homeowners comparing fixed and variable refinance rates ask us.

What is the difference between a fixed and variable rate home loan in the Philippines?

A fixed rate home loan locks your interest rate for a set period — usually 1, 2, 3, or 5 years — so your monthly repayment stays the same regardless of market movements. A variable rate loan adjusts periodically based on the bank's benchmark rate, meaning your payment can go up or down. After the fixed period ends on most Philippine bank loans, the rate typically reprices to whatever the bank's prevailing rate is at that time.

Which is better when refinancing — fixed or variable rate?

It depends on your priorities: if you want predictable monthly payments and protection against rate increases, a fixed rate is the safer choice. If you believe rates will fall further or you plan to pay off or sell your property within a few years, a variable rate could save you more. Nook can show you current offers for both structures so you can make a direct comparison based on real numbers.

How low can I get my rate if I refinance through Nook today?

The best refinance rate currently available through Nook is 5.99% p.a., which is significantly lower than the 7–10% many homeowners are still paying on older loan packages. The exact rate you qualify for will depend on factors like your loan amount, remaining term, property value, and credit profile. Nook compares offers across multiple Philippine banks to find you the most competitive option.

Are there costs involved in switching from a fixed to a variable rate when refinancing?

Yes, refinancing in the Philippines typically involves closing costs such as documentary stamp tax, appraisal fees, and processing fees, whether you switch rate types or not. Some banks may also charge a prepayment penalty if you refinance during your existing fixed-rate lock-in period — it's important to check your current loan terms before proceeding. You can learn more about what to expect in our guide to home loan refinance closing costs in the Philippines.

What happens when my fixed-rate period ends after refinancing?

Once your fixed-rate period expires, most Philippine banks will reprice your loan to their prevailing rate at that time, which could be higher or lower than your original fixed rate. This is a common trigger for homeowners to refinance again — either to lock in a new fixed rate or switch to a variable structure depending on the market. Nook recommends reviewing your loan terms at least 6 months before your repricing date so you have time to explore your options.

Every month you wait costs you ₱3,969.

Check your exact savings in 60 seconds. It's free and takes no commitment.

Check My Savings Now →