BDO vs BPI

Lowest Home Loan Interest Rates in the Philippines (2026)

If you're shopping for a home loan or thinking about refinancing, the interest rate you lock in will determine how much you pay every single month — and how much extra you hand to the bank over 15 to 25 years. Below, we compare the headline rates from the Philippines' biggest home loan lenders and show you exactly how much the difference costs in real peso terms.

*Pag-IBIG rates apply to eligible members with qualified properties and loan amounts. Not all borrowers qualify. Monthly payment estimates are based on a 5,000,000 loan over 20 years at the stated rate using standard amortization. Actual bank rates vary by loan amount, term, borrower profile, and repricing period. Bank rates shown are indicative ranges as of 2026.

BDO vs BPI: The Two Biggest Banks Head to Head

BDO and BPI are the two largest banks in the Philippines by assets, and both have extensive home loan programs. But size doesn't always mean the best rate. For a deeper breakdown of how these two compare on pricing, processing fees, and eligibility, see our BDO vs BPI home loan rates comparison.

The short version: BPI has historically offered slightly lower headline rates than BDO, particularly for borrowers with strong credit profiles and larger loan amounts. However, both banks' standard rates sit well above the 5.99% p.a. benchmark that Nook can access through its panel of lenders.

Real Cost Comparison: BDO vs BPI vs Nook's Best Rate

Let's make this concrete. Assume a 3,000,000 home loan over 20 years:

At 5.99% versus BDO's 7.75%, you save approximately 3,123 per month — that's 749,520 over the 20-year life of the loan. Even against BPI at 7.50%, switching to 5.99% saves around 2,648 per month, or 635,520 total. That's money that stays in your pocket.

Which Bank Has the Lowest Home Loan Rate in the Philippines?

The honest answer is: it depends on your borrower profile, loan amount, and the specific repricing period you choose. No single bank consistently offers the absolute lowest rate to every applicant. This is exactly the problem Nook was built to solve.

Here's what typically influences which bank will offer you the best rate:

• Loan amount: Larger loans (above 3,000,000) often attract more competitive rates from banks competing for bigger accounts.
• Loan-to-value ratio: Borrowing less than 70% of your property's appraised value typically gets you a better rate.
• Employment type: Salaried employees of large corporations often get preferential rates. Self-employed borrowers face wider variation.
• Credit history: A clean credit record with no missed payments unlocks the lowest rate tiers at most banks.
• Existing relationship: Some banks offer rate discounts to payroll or deposit account holders.
• Repricing period: 1-year fixed rates are almost always lower than 3-year or 5-year fixed rates — but they reprice sooner.

Because so many variables interact, the only way to know which bank will give you the lowest rate is to apply to multiple banks at once. That's time-consuming and difficult to do on your own — which is exactly what Nook does on your behalf, for free.

Security Bank and RCBC: The Challengers Worth Watching

While BDO and BPI dominate by market share, Security Bank and RCBC have consistently used aggressive pricing to win refinancing business. Security Bank in particular has been a standout — their rates frequently undercut the Big Two, especially for refinancers with equity above 30%. Our Security Bank vs BPI home loan comparison goes into detail on when Security Bank is the stronger choice.

RCBC has also emerged as a competitive option, particularly for OFW borrowers and those with properties in Metro Manila. They have flexible documentation requirements and have been known to offer rate matches for borrowers who come with competing offers in hand.

Rates by Bank: Current Indicative 1-Year Fixed Rates

Pag-IBIG vs Bank Loans: Is Pag-IBIG Always Cheaper?

Pag-IBIG (HDMF) fund rates are often cited as the lowest in the market — and for eligible members borrowing within the program's loan limits, that's often true. Pag-IBIG's housing loan rates start at 5.75% p.a. for loans up to 450,000 and 6.50% for larger amounts. However, there are important limitations:

• Maximum loanable amount is generally capped at 6,000,000 for most borrowers
• Property must meet Pag-IBIG's eligibility criteria
• Processing and approval timelines can be significantly longer than commercial banks
• Monthly contribution requirements apply
• Refinancing an existing bank loan through Pag-IBIG has specific eligibility conditions

For borrowers who qualify and whose property fits, Pag-IBIG is worth considering. But for loan amounts above 3,000,000, or for borrowers who need faster processing, commercial bank rates through Nook — starting at 5.99% — are often just as competitive and far more flexible.

How Much Can You Save by Refinancing?

If you took out your home loan 3 or more years ago, there's a very good chance you're paying a rate that's significantly higher than what's available today. Banks rarely notify you when better rates become available — they benefit from your inertia.

Here's a snapshot of potential monthly savings from refinancing to 5.99% p.a., based on common outstanding loan balances:

Calculations assume a 20-year remaining loan term. Actual savings depend on your specific balance, remaining term, and applicable fees.

These are not small numbers. A homeowner with a 5,000,000 outstanding balance currently paying 8% could free up nearly 72,000 pesos a year simply by refinancing. Over a 15-year remaining term, that's over 1,000,000 in cumulative savings.

What Is the Process for Refinancing Your Home Loan in the Philippines?

Many homeowners assume refinancing is complicated, expensive, or risky. In reality, for most borrowers with stable income and a property in good standing, it is a straightforward process — especially when a broker handles the bank submissions for you.

1. Check your current loan details. Know your outstanding balance, current interest rate, remaining term, and whether you're still in a lock-in period. Breaking a lock-in early may involve prepayment fees.
2. Assess your equity. Most banks require at least 20-30% equity in the property (meaning your outstanding loan is no more than 70-80% of the current appraised value). The more equity you have, the better your rate.
3. Gather your documents. Standard requirements include valid IDs, proof of income (payslips, ITR, or audited financial statements for self-employed), and your existing loan documents.
4. Apply through Nook. Instead of approaching banks one by one, Nook submits your profile to multiple lenders simultaneously and brings back the best offer. This saves weeks of back-and-forth.
5. Review and accept your best offer. Once you receive offers, compare the all-in rate (including fees), and accept the one that makes the most financial sense for you.
6. Complete the transfer. Your new lender pays off your existing bank. Title is transferred to the new lender as security. The whole process typically takes 4 to 8 weeks.